Sizeable Absolute Debt Burden RemainsDespite improved leverage metrics, the company still carries large absolute debt typical of airlines. That persistent debt stock increases exposure to cyclical demand drops, fuel and FX volatility, and rising interest rates, limiting strategic flexibility and raising refinancing risk in tougher macro periods.
Weaker Free Cash Flow Quality And ConversionA ~-17.7% YoY drop in FCF and FCF covering only ~34% of net income signal deteriorating cash conversion. If sustained this reduces internal funding for capex, debt paydown or shareholder returns, potentially forcing higher external financing or deferred investment in the fleet and operations.
Easing Margins Indicate Pressure On ProfitabilityMargin erosion versus 2024 points to structural cost or yield headwinds (fuel, labor, pricing). Persistent margin pressure would reduce the profitability buffer built during recovery, make ROE gains harder to sustain, and increase sensitivity of cash flow to demand volatility over the medium term.