Cost PressuresTariffs may pressure sale/leaseback (SLB) activity, while the carrier likely faces materially higher labor costs than its peers, as it negotiates contract amendments with its pilots.
Profitability ChallengesThe airline is not expected to generate pre-tax profits in FY25 or FY26, maintaining a Hold rating and a $3 price target.
Revenue OutlookManagement now expects revenue growth of 5% versus consensus of 13.8%, a pre-tax margin of -5% versus consensus of -1.2%, and a net loss per share between ($0.20) and ($0.24) versus consensus of ($0.04).