Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 322

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 322
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 2024 and 2023, the Company entered into15and11classified-as-failed
sale and leaseback engines arrangements due to the presence of a substantive option allowing the Company to repurchase the engines at
the end of the lease term.

q) Return obligations

The aircraft and engine lease agreements of the Company require
specific return conditions, which are described as follows:

  Modifications to the underlying asset to meet the return conditions stipulated in the lease agreement,                                  

  Aircraft components (airframe, APU and landing gears) and engines (overhaul                                                                     

r) Other taxes and fees payable

The Company is required to collect certain taxes and fees
from customers on behalf of government agencies and airports and to remit these to the applicable governmental entity or airport on a
periodic basis. These taxes and fees include federal transportation taxes, federal security charges, airport passenger facility charges,
and foreign arrival and departure fees. These charges are collected from customers at the time they purchase their tickets but are not
included in passenger revenue. The Company records liability upon collection from the customer and discharges the liability when payments
are remitted to the applicable governmental entity or airport.

s) Income taxes

Current income tax

Current income tax assets and liabilities for the current
period are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute
the amount are those that are enacted, or substantively enacted, at the reporting date.

Current income tax relating to items recognized directly in
equity is recognized in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred income tax

Deferred income tax is recognized in respect of temporary
differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting
date.

Deferred income tax liabilities are recognized for all taxable
temporary differences, except in respect of taxable temporary differences associated with investments in subsidiaries when the timing
of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future.

Deferred income tax assets are recognized for all deductible
temporary differences, the carry-forward of unused tax credits and any available tax losses. Deferred income tax assets are recognized
to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward
of unused tax credits and available tax losses