Weak Cash ConversionEarnings are not fully converting into cash, with FCF materially below net income. This persistent cash conversion gap limits liquidity buffers, constrains capital allocation flexibility and raises risk if margins compress or working capital swings recur.
High Cyclicality And Demand SensitivityThe airline business exhibits structural cyclicality tied to travel demand and costs. Past severe losses show vulnerability to downturns; sustained profitability depends on demand resilience and cost control across economic cycles, increasing long-term earnings volatility.
Sizable Absolute Debt BurdenDespite improving ratios, the company carries a large absolute debt stock. That size can limit strategic flexibility, elevate interest and refinancing risk in stress scenarios, and require continued strong cash generation to avoid constraining operations or investment plans.