Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 3

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 3
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 volatility, high inflation, high domestic interest rates, economic
contraction, a reduction of international capital inflows, a reduction of liquidity in the banking sector, and high unemployment rates.

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  Table of Contents  

We conduct an important part of our operations in the United
States and Central and South America. For the year ended December 31, 2024, 38% of our total revenues were attributable to our operations
within these regions. Therefore, our results are influenced not only by our domestic operations but also by those conducted in the United
States and Central and South America.

As of the date of this annual report, we believe that the
main risk factors for the countries where we operate include, but are not limited to, the following: (i) continuation of persistent supply-demand
mismatches, increasing inflation and a faster-than-anticipated monetary policy normalization cycle, and its impact on the global economy,
emerging markets, risk aversion, foreign exchange markets, debt, and financial market volatility; (ii) escalation of social unrest; (iii)
more adverse climate shocks; (iv) an escalation of trade and technology tensions, could weigh on investment and productivity growth, raising
additional roadblocks in the recovery path; (v) rapid growth of cryptocurrencies without clear regulation that could lead to financial
instability with negative effects for the global economy; (vi) an increase in the spread and destructiveness of cyberattacks involving
critical infrastructure could act as further drags on the recovery, particularly as telework and automation increase; (vii) changes in
United States immigration and trade policies; and (viii) other geopolitical risks.

Unfavorable economic conditions in Mexico and the other countries
in which we operate, including a slowdown or recession in their economies, as well as higher inflation rates, may result in decreased
demand for our flights, lower fares or a shift towards alternative ground transportation options, such as long-distance buses. We cannot
assure you that economic conditions in Mexico and the other countries in which we operate will not worsen, or that those conditions will
not have an adverse effect on our business, results of operations and financial condition.

Economic, political, or social developments in the United States and the
Central and South American countries in which we operate may have an adverse effect on our business, results of operations, financial
condition and prospects.

Our business, results of operations and financial condition
are affected by economic, political or social developments in the United States and