Rising Leverage / Higher Debt-to-equityAn increasing debt-to-equity ratio raises financial risk and interest burden, reducing flexibility to invest or weather demand shocks. Given a travel firm's cyclical revenues, higher leverage can amplify downturn impacts and constrain strategic options over the medium term.
Volatility In Cash FlowsIrregular operating and free cash flows impair planning and make debt servicing and capex timing uncertain. For a services business dependent on bookings, sustained volatility can force precautionary liquidity measures, raising funding costs and limiting growth initiatives.
Historical EBIT/EBITDA Margin WeaknessPast negative operating margins point to structural cost or scale inefficiencies. Even with recent margin gains, underlying operational weaknesses could resurface under cost pressure or slower demand, threatening long-term margin sustainability and cash conversion.