Negative Operating And Free Cash FlowPersistent negative operating and free cash flows undermine the firm's ability to self-finance capex, fleet maintenance or debt service. Over several months this drives reliance on external financing, raises refinancing risk, and can constrain strategic investments or dividend capacity.
Revenue And EPS DeclineDeclining revenue and a steep EPS drop point to weakening demand or pricing pressure and reduced profitability. If these trends persist over months, scale economics and margin recovery become harder, limiting free cash generation and undermining return-on-capital improvements.
High Total Debt LevelsElevated absolute debt, even with a manageable D/E ratio, increases fixed obligations and interest exposure. Combined with weak cash flow, high debt raises refinancing and liquidity risk, potentially forcing deferment of fleet upgrades or operational spending that harm competitiveness long-term.