Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 116

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 116
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 non-refundable ticket expires on the
date of the scheduled travel.

We also classify as other passenger revenues “ V-Club”
and other similar services, which are recognized as revenue over time when the service is provided.

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  Table of Contents  

We sell certain connecting flight tickets with one or
more segments operated by other airline partners. For segments operated by one of our airline partners, we have determined that we are
acting as an agent on behalf of such airline partners as we are responsible for a portion of the contract (i. e., transportation of the
passenger). When we act as the agent, we recognize revenue within other passenger revenues at the time of travel, for the net amount retained
by us for any segments flown by the other airline.

Non-passenger revenues

The most significant non-passenger revenues include
revenues generated from: (i) revenues from other non-passenger services described below and (ii) cargo services.

Revenues from other non-passenger services mainly include,
but are not limited to, commissions charged to third parties for the sale of trip insurance and other services. These revenues, as well
as cargo services, are recognized as revenue at the time the service is provided.

We also evaluate, in each new transaction where applicable,
the principal versus agent considerations concerning certain non-air travel service arrangements with third-party providers. When we determine
that the underlying services are provided through third parties who are primarily responsible for providing the services, revenue for
these specific non-air travel services is presented on a net basis (agent). We are also required to collect certain taxes and fees from
customers on behalf of government agencies and airports and remit these back to the applicable governmental entity or airport on a periodic
basis. These taxes and fees include value added tax, federal transportation taxes, federal security charges, airport passenger facility
charges, and foreign arrival and departure taxes. These items are collected from customers at the time they purchase their tickets but
are not included in passenger revenue. We record a liability when we receive payment from the customer and discharge the liability when
payments are remitted to the applicable governmental entity or airport.

Contract with FEMSA

On January 23, 2023, our subsidiary Concesionaria, entered
into an agreement with Lealtad Mercadotecnia y Conocimientos Agregados, S. A. P. I. de C. V. (the “ Supplier”), a subsidiary of
Fomento Económico Mexicano,