Weak Cash ConversionA low FCF-to-net-income ratio means reported earnings do not readily convert into spendable cash, limiting liquidity flexibility. This can constrain debt servicing, capex and dividend sustainability if margins deteriorate, raising structural financing risk despite positive accounting profits.
High Cyclicality / Demand SensitivityThe airline's earnings and cash flow remain sensitive to travel demand, fuel and macro shocks. Prior multi-year losses demonstrate vulnerability to downturns, meaning revenue and margin volatility can re-emerge and stress operations or force abrupt capacity and cost adjustments.
Sizable Absolute Debt BurdenAlthough leverage ratios improved, the large nominal debt stock creates significant fixed obligations. In a demand or cost shock, interest and principal servicing could consume cash flows and limit strategic flexibility, increasing downside risk despite better relative metrics.