Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 335

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 335
---
 recycled to the fuel cost during 4Q 2024
and will recycle to the fuel cost during 1Q 2025, as these options expire on a monthly basis and the jet fuel is consumed. Contracted
options for 4Q 2024 expired and the only outstanding are the ones for 1Q 2025.

  Schedule of expired and the only outstanding                                                                                           
                                                                       Position as of December 31, 2024                                  
                                                                       1Q 2025                                                           
  Notional volume in gallons (thousands) (1)                                                                                14,356       
  Strike price agreed rate per gallon (2)                              US$                                                  2.18 / 2.25  
  Approximate percentage of hedge (of expected consumption value)                                                           17           

  (1)      U. S.                                       
  (2)      Weighted                                    

Fuel Sensitivity

The sensitivity analysis provided below presents the impact
of a change of US$0.01per gallon in fuel market spot price in the Company’s financial performance. Considering these figures, an
increase of US$0.01per gallon in the fuel prices during 2024, 2023 and 2022 would have impacted the Company’s operating costs in
US$3,227, US$3,719and US$3,399, respectively.

  Schedule of fuel sensitivity                                                                                 
                                    As of December 31,                                                         
                                    2024                                            2023                 2022  
                                    Operating costs                      Operating costs      Operating costs  
                                    (In thousands of U. S. dollars)                                            
  + US$ 0.01 per gallon             3,227                                          3,719                3,399  
  - US$ 0.01 per gallon             ( 3,227                                      ( 3,719              ( 3,399  

The Company has been proactively trying to mitigate this impact
over our business through revenue yielding and a continued effort towards a reduced fuel consumption. Nonetheless, our ability to pass
on any significant increases in fuel costs through fare increases is also limited by our ultra-low-cost business model and market high
elasticity to price.

b) Foreign currency risk

The Company is exposed to transactional foreign currency risk
due to potential mismatches between the currencies in which sales, expenses, receivables and borrowings are denominated, and the respective
functional currencies of the Company and its subsidiaries. The U. S. dollar is the functional