Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 87

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 87
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, we have increased average non-ticket revenue per passenger flight segment from approximately
U. S. $9.61 in 2010 to U. S. $54.13 in 2024 by, among other things:

  checked baggage;  

  charging for excess baggage;  

  utilizing our excess aircraft belly space to transport cargo;  

  passing through all distribution-related expenses;  

  charging for advance seat selection, extra legroom, and carriage of sports equipment;  

  consistently enforcing revenue policies, including change fees;  
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  generating subscription fees from our ultra-low-fare subscription service, V-Club and Annual Pass;  

  deriving brand-based fees from proprietary services, such as our Volaris affinity credit card program;  

  selling itinerary attachments, such as hotel and car rental reservations and airport parking, and making available trip interruption  

  selling onboard food and beverages advertising.  

Core
Focus on VFR Travelers, Cost-conscious Business Travelers and Leisure Travelers. We primarily target VFR travelers, cost-conscious
business travelers and leisure travelers in Mexico and the United States. We believe these demographics represent the highest potential
for growth in our target markets. By offering low promotional fares, we stimulate demand for VFR and leisure travel, and attract new customers,
including those who previously may have only traveled by bus. We use our yield management system to set prices based on the time of booking
and load factor.

During 2024, we managed yield and load factor, including through
targeted promotional fares that can be as low as U. S. $1.80 or U. S. $0.98 for V-Club members, excluding airport fees. We have found that
many Mexicans and Mexican Americans living in the United States buy airline tickets for themselves and their family members in Mexico.
In addition, we have over 255,000 points of payment throughout Mexico, the United States, Guatemala, El Salvador, Costa Rica, Peru and
Colombia that allow travelers, particularly in Mexico, who do not have credit cards, or are reluctant to provide credit card information
over the web or call center, to reserve seats using the web or call center and pay with cash within 24 hours. Furthermore, we offer night
flights, which appeal to our domestic and international customer base that seek to save on lodging expenses.

Disciplined
Approach to Market and Route Selection. We select target markets and routes where we believe we