Thin, Volatile ProfitabilityAn almost zero net margin leaves minimal buffer for cost inflation or traffic declines and makes profits fragile. Historical volatility and prior losses mean earnings are not yet reliably sustainable; this constrains ability to accumulate reserves and undermines long-term return prospects for equity holders.
Elevated Leverage Vs PeersDebt roughly equal to equity increases interest and refinancing exposure for a sector sensitive to cyclical traffic. Elevated leverage reduces strategic flexibility, raises the cost of incremental capital, and heightens risk if cash flows deteriorate, making sustained investment or aggressive expansion more hazardous.
Inconsistent Cash Conversion; Negative FCFA swing to negative free cash flow despite revenue recovery signals working-capital pressure or higher reinvestment needs. Inconsistent conversion from earnings to free cash limits deleveraging, dividend capacity, and self-funded growth, increasing execution and refinancing risk over the medium term.