Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 340

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 340
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 the cap to 13% on the reference rate for the life of the CEBUR (VOLARCB23) and have the same amortization schedule.

The cap started on October 20, 2023, and the maturity date
is September 20, 2028, consisting of 59 “caplets” with the same specifications as the CEBUR (VOLARCB23) coupons for reference
rate determination, coupon term and fair value.

The following table shows
the sensitivity analysis of the change that would have occurred in the fair value of the interest hedging instrument on the CEBUR (VOLARCB23)
in 2024 as a result of a reasonably possible change in rates, keeping all other variables constant:

            Change in          Effect on cap (1)             
                               (In thousands of              
  2024      + 0.50             US$                      149  
            - 0.50                                    ( 125  
  2023      + 0.50             US$                      132  
            - 0.50                                     ( 89  

  (1)      The effect would affect OCI in relation to the interest rate caps.  

As of December 31, 2024 and 2023, the Company’s outstanding
hedging contracts in the form of interest rate caps with notional amount of Ps. 2.42billion (US$119.2million based on an exchange rate
of Ps. 20.27to US$1 on December 31, 2024) and Ps. 3.16billion (US$187.4million based on an exchange rate of Ps. 16.89to US$1 on December
31, 2023), respectively, had fair values of US$271and US$1,683, respectively, and are presented as part of the financial assets in the
consolidated statement of financial position. As of December 31, 2024 and 2023, the Company recognized US$30and US$(1,175), respectively,
in other comprehensive income (loss) in relation to the interest rate caps.

For the years ended December 31, 2024, 2023 and 2022, the
amortization of the intrinsic value of the cap was US$896, US$579and US$161, respectively, recycled to the consolidated statements of
operations as part of the finance cost. During 2024,