Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 117

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 117
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 S. A. B. de C. V. (FEMSA). Through this agreement, Concesionaria became a participating company in a coalition
that integrates a Loyalty Program known as “ Spin Premia®”, which is established and managed by the Supplier. The program
offers exclusive benefits to users, enabling them to accumulate and redeem reward points with OXXO and Volaris. The agreement is set to
expire in June 2025.

Operating Expenses, net

Our operating expenses consist of the following line
items.

Other Operating Income. Other operating income
primarily includes gains from sale and leaseback transactions and the compensation received from the manufactuer related to preventive
accelerated engine inspections.

Fuel expense. Fuel expense is our single largest
operating expense. It includes the cost of fuel, fuel taxes, fueling into-plane fees and transportation fees. It also includes realized
gains and losses that arise from any fuel price derivative activity qualifying for hedge accounting.

Landing, Take-off and Navigation Expenses. Landing,
take-off and navigation expenses include airport fees, handling charges, rents, and variable facility-related costs, such as the fees
charged by airports for the use or lease of airport facilities, as well as costs associated with ground handling services provided by
specific suppliers. These expenses also include route charges, which are the costs incurred for the use of a country’s or territory’s
airspace, which are typically levied based on the distance flown through that airspace.

Depreciation of right - of - use assets.
Depreciation of right-of-use assets includes the depreciation of all aircraft and engine leases and some land and building leases that
qualify under IFRS 16.

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  Table of Contents  

Under IFRS 16, at the commencement date of a lease,
a lessee recognizes a liability for making lease payments ( i. e., the lease liability) and an asset representing the right to use
the underlying asset during the lease term ( i. e., the right-of-use asset). Lessees are required to separately recognize the interest
expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees are also required to remeasure the lease
liability upon the occurrence of certain events ( e. g., changes in the scope of the lease agreement). The lessee generally recognizes
the amount of remeasurement as a change in the lease liability and the right-of-use asset. In addition, for leases