Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 21

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 21
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 Navegación Aérea) in Central America, the Air Navigation Services Directorate (Dirección de Servicios a
la Navegación Aérea) in Colombia, and the Peruvian Corporation of Airports and Commercial Aviation (Corporación
Peruana de Aeropuertos y Aviación Comercial) in Peru, faces challenges in managing the growing demand for air travel. U. S.
and Mexican air-traffic controllers often rely on outdated technologies that routinely overwhelm the system and compel airlines to fly
inefficient, indirect routes resulting in delays. For example, in January 2023, flights in the United States were halted for a few hours
because the FAA’s system issues for providing certain information to pilots (NOTAMs) went down as a result of a damaged database
file. Adverse weather conditions and natural disasters can also cause flight cancellations or significant delays.

Cancellations or delays due to weather conditions, natural
disasters, air traffic control problems, health outbreaks or concerns, pandemics, breaches in security or other factors and any resulting
reduction in airline passenger traffic could have a material adverse effect on our business, results of operations and financial condition.
Additionally, climate change concerns may increase the possibility of disruptive weather, or changes that may impact the desirability
of an area, that could adversely affect certain of our destinations more frequently or for longer periods of time.

Airline consolidations and reorganizations could adversely affect
the industry.

The airline industry has undergone substantial consolidation
throughout the years and recently, and it may undergo additional consolidation in the future. Any consolidation or significant alliance
activity within the airline industry could increase the size and resources of our competitors. In particular, the airline industry in
Mexico has seen a sharp contraction with the exit of more than nine Mexican airlines since 2007, according to data from the SICT. The
most recent being Transportes Aeromar, S. A. de C. V., a regional carrier, which on February 15, 2023 announced its definitive cessation
of operations. In April 2023, Interjet declared bankruptcy in Mexico. It is possible that further airline reorganizations, consolidation,
bankruptcies, or liquidations may occur in the current global economic environment, the effects of which we are unable to predict. We
cannot assure you the occurrence of these events, or potential changes resulting from these events, will not harm our business or the
industry.

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