Weak Balance Sheet: Negative EquityPersistent negative equity and sizable, volatile debt materially constrain financial flexibility and increase solvency risk in downturns. Even with stronger operating cash flow, negative equity complicates covenant dynamics, limits strategic options, and raises refinancing and counterparty concerns over the medium term.
Rising Non-fuel Unit Costs (CASM Ex-fuel)Structural upward pressure on CASM ex-fuel from labor renegotiations, greater depreciation from fleet additions and one-time IPO costs can erode margins over time. If these cost bases persist, they limit upside from revenue growth and make sustained margin expansion more difficult despite pricing and premium mix gains.
Regulatory & Domestic Market UncertaintyConstraints on route rights and unresolved domestic competitive remedies can structurally limit network expansion and yield improvement from Mexico City. Prolonged regulatory limits or an unclear competitive landscape could constrain capacity deployment, revenue diversification and long-term growth execution.