Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 16

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 16
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 impacts of climate
change and related risks may translate, among others, into financial and reputational risks. For example, changes in the availability
or cost of aircraft and components, as well as fuel due to climate conditions, may adversely impact our operations. Additionally, customers
may choose to fly less frequently or fly on an airline they perceive as operating in a manner that is more environmentally sustainable.
Customers may choose to use alternatives to travel, such as virtual meetings and workspaces. As part of our climate strategy, we offer
an option for travelers to voluntarily purchase carbon offsets to partially offset their flight emissions; however, in recent years, there
has been increased scrutiny on the use of carbon offsets, and we may not be able to realize the anticipated benefits of their purchase
as a result. Policymakers have also adopted, or considered adopting, various regulations on climate-related disclosures and other matters.
For more information, see our risk factor titled “ Increasing attention to, and scrutiny of, ESG matters could increase our costs,
harm our reputation, or otherwise adversely impact our business.”

Finally, the potential acute and chronic physical effects
of climate change, such as increased frequency and severity of storms, floods, fires, sea-level rise, excessive heat, longer-term changes
in weather patterns and other climate-related events, could affect our operations, infrastructure, and financial results. Operational
impacts, such as the cancellation of flights, could result in loss of revenue. We could also incur significant costs to improve the climate
resiliency of our infrastructure and otherwise prepare for, respond to, and mitigate such physical effects of climate change. However,
we cannot predict the ultimate cost, or success, of such efforts due to, among other things, the uncertainty associated with projections
associated with managing climate risk.

Increasing attention to, and scrutiny of, ESG matters could increase our
costs, harm our reputation, or otherwise adversely impact our business.

Companies across industries are facing increasing scrutiny
from a variety of stakeholders related to their management of climate change, human capital, and other ESG and sustainability matters.
Expectations regarding voluntary/mandatory ESG initiatives and disclosures and consumer demand for alternative forms of energy may result
in increased costs (including but not limited to increased costs related to compliance, stakeholder engagement, suppliers’ contracts
and insurance), changes in demand for certain products, enhanced compliance or disclosure obligations, or other adverse impacts to our
business, financial condition, or results of operations.

While we may at times engage in voluntary initiatives