Negative Equity And Sizable DebtNegative shareholders' equity and roughly $4.0B of debt materially raise financial risk and reduce flexibility. Structurally high leverage limits capacity for organic investment, hedging or acquisitions, increases refinancing and covenant risk, and compresses options during downturns.
Fuel And Currency ExposureSignificant sensitivity to jet-fuel prices and a stronger peso compress margins and cash flow. Fuel pass-through is phased through the year and uncertain; persistent fuel or FX shocks can erode profitability and limit free-cash-flow durability despite management's recapture plans.
Capacity Cuts & Modest Absolute EBITDA CushionTrimming capacity to protect cash signals weaker demand visibility and reduces growth optionality. Combined with a modest absolute adjusted EBITDA level, this leaves limited buffer against prolonged shocks, restricting the firm's ability to invest in network expansion or absorb continued cost inflation.