Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 85

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 85
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4, we were the third largest international carrier in terms of passenger flight segments out of all airlines flying internationally
to and from Mexico. We have been able to grow our international market share and our strategy to target and stimulate markets in the United
States with large Mexican and Mexican-American communities.

In terms of both domestic and international ticketed passengers,
our total passenger volume increased at a CAGR of 21.4% from 2006 to 2024, with approximately 0.9 million booked passengers in 2006 and
29.5 million booked passengers in 2024.

Our Business Model

Our business model is similar to that of other ULCCs operating
elsewhere in the world, such as Allegiant and Frontier in the United States, Ryanair and Wizz in Europe and AirAsia in Asia. We utilize
our ULCC business model and efficient operations to offer low base fares and to stimulate demand while aiming to provide suitable and
efficient customer service. Our unbundled pricing strategy allows us to provide low base fares and enables our passengers to select and
pay for a range of optional products and services for additional fees. We target VFR travelers, cost-conscious business travelers
and leisure travelers in Mexico and to select destinations in the United States, Central and South America.

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Since May 2012, we have unbundled certain components of our
air travel service as part of a strategy to enable our passengers to select and pay only for the products and services they want to use.
This unbundling strategy has allowed us to significantly grow our non-passenger and total revenue. We plan to continue to use low base
fares to stimulate additional passenger demand, shift bus passengers to air travel and increase our load factor. Higher load factors help
us generate additional non-passenger and total revenue, which in turn, allow us to further lower base fares and stimulate new demand.

We have a relentless focus on low costs as part of our organizational
culture. We are one of the lowest cost publicly traded airline carriers in Latin America, based on CASM. We are also one of the lowest
cost carriers in our target markets in Mexico and the United States, compared to our target market competitors, according to public information
available from such competitors. We are able to keep our costs low due to our efficient and uniform fleet, high asset utilization, our
emphasis on direct sales and distribution and our variable, performance-based compensation structure.

Since our inception, we have aimed to