Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 12

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 12
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 to have a material adverse effect on our business, results of operations and financial condition.

The airline industry is particularly sensitive to changes in
economic conditions. A global economic downturn could negatively impact our business, results of operations and financial condition.

Our business and the airline industry in general are affected
by changing economic conditions beyond our control, including, but not limited to:

  changes and volatility in general economic conditions, including the severity and duration of any downturn in Mexico, the United States  

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  changes in consumer preferences, perceptions, spending patterns or demographic trends, including any increased preference for higher-fare  

  higher levels of unemployment and varying levels of disposable or discretionary income;  

  health outbreaks, pandemics and other safety concerns;  

  decreases in housing and stock market prices;  
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  lower levels of actual or perceived consumer confidence;  

  high inflation and interest rates;  

  tariffs and global trade policies; and  

  increases in exchange rate volatility and fuel prices.  
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These factors can adversely affect our results of operations
and financial condition, our ability to obtain financing on acceptable terms and our liquidity generally. Current unfavorable general
economic conditions, such as higher unemployment rates, a constrained credit market, housing-related pressures and increased focus on
reducing business operating costs can reduce spending for leisure, VFR and business travel. For many travelers, in particular the leisure
and VFR travelers we serve, air transportation is a discretionary purchase that they can eliminate from their spending in difficult economic
times.

In addition, adverse economic conditions could affect our
ability to implement price adjustments, to counteract increased fuel, labor or other costs, which could result in a material adverse effect
on our business, results of operations and financial condition. We are currently striving to increase demand for our flights among the
portion of the population in Mexico that has traditionally used ground transportation for travel due to price constraints, by offering
lower fares that compete with bus fares on similar routes. Unfavorable economic conditions could affect our ability to offer these lower
fares and could affect this population segment’s discretionary spending in a more adverse manner than other travelers.

Further, in an inflationary environment, we may be unable
to manage through the resulting increases in our operating costs depending on its effects on the airline industry and other economic conditions.
We cannot predict how long an inflationary period will last or if it will re-oc