Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 45

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 45
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Additionally, there can be no assurance that our cybersecurity
risk management framework - including governance practices, security protocols, and response procedures - will be effective or
complied with across all areas of our operations. A successful cyber-attack or security breach could result in material adverse effect
in our financial results and operations, including increased remediation and restoration costs, and cybersecurity expenses, regulatory
investigations, litigation (including class action lawsuits), reputational damage, lost revenues from business disruption, and potential
loss of customers and business partners. Furthermore, unauthorized access to sensitive information - such as financial data, payment
details, or employee and customer Confidential Information - could undermine consumer and investor confidence and lead to significant
regulatory penalties or contractual liabilities that materially impact our financial condition. Finally, we cannot guarantee that any
costs and liabilities incurred in relation to an attack or incident will be covered by our existing insurance policies or that applicable
insurance will be available to us in the future on economically reasonable terms or at all.

We use AI Technologies in our business, and the deployment, use and maintenance
of these technologies involve technological and legal risks.

We use artificial intelligence (“ AI”), machine
learning technologies (collectively, “ AI Technologies”) in our business, and continue to invest in this area. For example,
we use AI Technologies to power Vane, a chatbot that is trained to provide support to our customers, such as with their upcoming travel
or to answer questions about our travel policies. We are also exploring other ways to use AI Technologies in our business operations,
such as for customer service enhancements, demand forecasting, and internal process automation.

As with many technological innovations, there are significant
risks involved in developing, maintaining and deploying these technologies and there can be no assurance that the usage of or our investments
in such technologies will always enhance our products or services or be beneficial to our business, including our efficiency or profitability.

In particular, if the models underlying the AI Technologies
we use are: incorrectly designed or implemented; trained or reliant on incomplete, inadequate, inaccurate, biased or otherwise poor quality
data; used without sufficient oversight and governance to ensure their responsible use; and/or adversely impacted by unforeseen defects,
technical challenges, cybersecurity threats or material performance issues, the performance of our business, as well as our reputation,
could suffer or we could incur liability resulting from the violation of laws or contracts to which we are a party or civil claims.

We use AI Technologies licensed from third parties. If any
such third-party