Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 330

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 330
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 or intermediate) that prepares consolidated financial statements,
available for public use, that comply with IFRS accounting standards.

IFRS 19 will become effective for reporting periods beginning
on or after January 1, 2027, with early application permitted.

The Company is currently assessing the amendments, which it
expects will not have impact on the consolidated financial statements.

2. Use of judgments, estimates and assumptions

The preparation of these consolidated financial statements
requires management to make estimates, assumptions and judgments that affect the reported amount of assets and liabilities, revenues and
expenses, and related disclosures of contingent assets and liabilities at the date of the Company’s consolidated financial statements.
The note 1 to the Company’s consolidated financial statements provides a detailed discussion of the material accounting policies.
Certain of the Company’s accounting policies reflect significant judgments, assumptions or estimates about matters that are both
inherently uncertain and material to the Company’s financial position or results of operations. (Note 1).

Actual results could differ from these estimates. Revisions
to accounting estimates are recognized in the period in which the estimate is revised. Revisions to estimates are recognized prospectively.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year are discussed below.

For leases, significant accounting judgments, estimates and
assumptions, refer to Note 1q.

i) Return obligations

The aircraft lease agreements of the Company also require
that the aircraft components (airframe, APU and landing gears) and engines (overhaul and limited life parts) be returned to lessors under
specific conditions of maintenance. The costs of return, which in no case are related to scheduled major maintenance, are estimated and
recognized ratably as a provision from the time it becomes likely such costs will be incurred and can be estimated reliably. These return
costs are recognized on a straight-line basis as a component of variable lease expenses, and the provision is included as part of other
liabilities through the remaining lease term. The Company estimates the provision related to aircraft components and engines using certain
assumptions, including the projected usage of the aircraft and the expected costs of maintenance tasks to be performed. This provision
is made in relation to the present value of the expected future costs of meeting the return conditions (Note 14 and 16).

ii) Deferred taxes

Deferred tax assets are recognized for all available tax losses
to the extent that it is probable that taxable profit will be available