Revenue & EPS DeclineMaterial declines in revenue and EPS signal weakening top-line momentum and profitability per share. Over several quarters this can erode scale advantages, reduce supplier leverage and incentive income, and constrain the firm's ability to invest in product, marketing, or margin-expanding initiatives.
Decreasing Cash BalancesA noted drop in cash balances reduces the company’s liquidity buffer against seasonal demand swings in travel. Persisting depletion raises the probability of short-term borrowing or delayed investments, increasing vulnerability to external shocks and limiting tactical flexibility.
Lower Free Cash FlowDeclining free cash flow curtails internal funding for growth, capex, or new product initiatives. Over a multi-month horizon this heightens reliance on external capital, which can raise costs, dilute equity or increase leverage, and slow strategic expansion or product development.