Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 360

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 360
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 31, 2024 and 2023, the Company capitalized borrowing costs of US$35,107 and US$21,901, respectively.    
           The amount of this line is net of disposals of capitalized borrowing costs related to sale and leaseback transactions of US$15,191 and  
           US$3,330, respectively.                                                                                                                 
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a) During 2024 and 2023, the Company acquired 16 engines (11
NEO and five V2500) and nine engines (five NEO and four V2500), respectively, (under the terms of the Pratt & Whitney purchase agreement
FMP). These acquisitions were accounted for at cost, totaling US$163,463and US$85,182, respectively. The Company identified the major
components separately at their respective cost. These components are classified as flight equipment and depreciated over their useful
life.

b) During the years ended December 31, 2024 and 2023, the
Company capitalized borrowing costs, which amounted to US$35,107and US$21,901, respectively (Note 23). The Company capitalizes the actual
borrowing costs of the borrowings directly attributable to the constructions of aircraft. For the years ended December 31, 2024 and 2023,
the weighted rate of the direct borrowings used to determine the amount of borrowing costs was7.59% and8.85%, respectively.

c) Depreciation expense for the years ended December 31, 2024,
2023 and 2022 was US$175,266, US$127,401and US$90,790, respectively. Depreciation expenses for the year are recognized as a component
of operating expenses in the consolidated statements of operations.

d) In October 2005 and December 2006, the Company entered
into purchase agreements with Airbus and International Aero Engines AG (“ IAE”) for the purchase of aircraft and engines, respectively.
Under such agreements and prior to the delivery of each aircraft and engine, the Company agreed to make pre-delivery payments, which were
calculated based on the reference price of each aircraft and engine, and following a formula established for such purpose in the agreements.

In 2011, the Company amended the agreement with Airbus for
the purchase of44A320 family aircraft to be delivered from 2015 to 2020.