Meaningful LeverageDespite improvement, a ~1.68 debt-to-equity ratio remains high for an airline, leaving structural sensitivity to demand shocks, fuel price swings and interest-rate moves. Elevated leverage constrains capital allocation, increases refinancing risk and limits strategic flexibility over months.
Margin NormalizationA step-down in margins from 2024 to 2025 signals normalization and/or rising structural costs. Lower margin headroom reduces the company's ability to absorb revenue shocks, slows equity rebuild, and may force tougher pricing or cost actions that affect long-term profitability.
Weakening Cash ConversionA year-over-year decline in free cash flow and weaker conversion from earnings suggests less efficient working-capital or higher capex. Persisting cash-conversion weakness would limit capacity to pay down debt, sustain dividends or invest in growth without external funding.