Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 4

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 4
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 the Central and South American countries in which
we operate. Like other companies with international operations, political, economic, geopolitical or social developments in the countries
in which we operate, such as elections, new governments, changes in public policy, economic circumstances, laws and/or regulations, trade
policies, political agreements or disagreements, civil disturbances and a rise in violence or the perception of violence, could have
a material adverse effect in the countries in which we operate or on the global financial markets, and in turn on our business, results
of operations, financial condition and prospects.

For instance, the new presidential administration in the United States has issued a
series of executive orders that signal a shift in the United States energy and climate change policy. Among other directives, such executive
orders: (i) direct federal agencies to identify and exercise emergency authorities to facilitate conventional energy production, transportation,
and refining, and call for the use of emergency regulations to expedite energy infrastructure projects; (ii) promote energy exploration
and production on federal lands and waters; (iii) mandate a review of existing regulations that may burden U. S. energy development; and
(iv) pause the disbursement of funds appropriated through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act.
In addition to these executive orders, the “ Initial Rescissions of Harmful Executive Orders and Actions” executive order,
which was issued on January 20, 2025, revokes close to 80 executive orders issued by the previous administration, including those addressing
public health and the environment, climate change, and climate related financial risks. We do not yet know the full impact of such changes
on our business, including the effects of such changes relative to our competitors. Additionally, there is currently significant uncertainty
about the future political and economic relationship between the United States and various other countries, such as Mexico, including
as a result of the change in the U. S. presidential administration with respect to trade policies, treaties, tariffs, taxes, and other
limitations on cross-border operations. Changes in tariffs, trade barriers, price and exchange controls and other regulatory requirements
could have an adverse effect on our business, prospects, financial condition and operating results, the extent of which cannot be predicted
with certainty at this time.

If inflation rates increase in Mexico and the other countries
in which we operate, demand for our services may decrease and our costs may increase.

Mexico
has historically experienced levels of inflation that are higher than the annual inflation rates of its main trading