Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 26

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 26
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 affect our ability to achieve our growth strategy, which could harm our business.

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  Table of Contents  

In addition, expansion to new international markets may have
other risks due to factors specific to those markets. When entering new international markets, we may be unable to foresee all of the
risks associated with such market or respond adequately to these risks, and our growth strategy and/or our business may suffer as a result.
In addition, our competitors may reduce their fares and/or offer special promotions following our entry into a new market. As a result,
we cannot guarantee that we will be able to profitably expand our existing markets or enter new markets.

Our target growth markets are in Mexico, the United States,
Central and South America, including countries with less developed economies that may be vulnerable to more unstable economic and political
conditions, such as significant fluctuations in GDP, interest and currency exchange rates, civil disturbances, government instability,
nationalization and expropriation of private assets and the imposition of taxes or other charges by governments. The occurrence of any
of these events in markets served by us may adversely affect our ability to implement our growth strategy.

Expansion of our markets and services may also strain our
existing management resources and operational, financial and management information systems to the point that they may no longer be adequate
to support our operations, requiring us to make significant expenditures in these areas. We currently expect that we will need to develop
further financial, operational and management controls, reporting systems and procedures to accommodate future growth. However, we cannot
assure you that we will be able to develop these controls, systems or procedures on a timely basis or at all, and the failure to do so
could harm our business.

Our ultra-low-cost structure is one of our primary competitive
advantages and many factors could affect our ability to control our costs.

Our ultra-low-cost structure is one of our primary
competitive advantages, but we have limited control over many of our costs. For example, we have limited control over the price and
availability of fuel, aviation insurance, airport and related infrastructure taxes, tariffs, the cost of meeting changing regulatory
requirements, and our cost to access capital or financing. We cannot guarantee that we will be able to maintain a cost advantage
over our competitors. If our cost structure increases and we are no longer able to maintain a cost advantage over our competitors,
it could have a material adverse effect on our business, results of operations, financial condition and prospects.

Our fuel hedging strategy may not reduce