High LeverageA high debt-to-equity ratio represents a structural financing vulnerability in a capital-intensive airline. Elevated leverage raises refinancing and interest-rate risk, limits capital allocation flexibility, and makes funding fleet or strategic moves harder without deliberate deleveraging over the medium term.
Earnings VolatilitySharp EPS declines and volatile net margins undermine earnings predictability. Even with revenue and operating improvements, swings in net income can create cash-flow variability and complicate planning for investment, debt reduction or shareholder returns across the coming quarters.
Structural Cost ExposureMargins are structurally exposed to fuel, leasing, maintenance, airport charges and FX. These external cost drivers can rapidly erode profitability despite demand recovery, leaving earnings sensitive to commodity and regulatory moves and reducing margin resilience over the medium term.