Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 317

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 317
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ial computation
was prepared as of December 31, 2024. Remeasurement of the net defined benefit liability arising from actuarial gains and losses
are recognized in full in the period in which they occur in OCI. Such remeasurement gains and losses are not reclassified to profit or
loss in subsequent periods.

The defined benefit asset or liability comprises the present
value of the defined benefit obligation using a discount rate based on government bonds, less the fair value of plan assets out of which
the obligations are to be settled.

For entities in Costa Rica, Guatemala and El Salvador, there
is no obligation to pay seniority premiums; these countries have Post-Employee Benefits.

iv) Incentives

The Company has a quarterly incentive plan for certain personnel
whereby cash bonuses are awarded for meeting certain performance targets. These incentives are payable shortly after the end of each quarter
and are accounted for as a short-term benefit under IAS 19, Employee Benefits. A provision is recognized based on the estimated
amount of the incentive payment. During the years ended December 31, 2024, 2023 and 2022, the Company expensed US$4,249US$3,467and US$2,992,
respectively, as quarterly incentive bonuses, recorded under the caption salaries and benefits.

The Company has a short-term benefit plan for certain key
personnel whereby cash bonuses are awarded when certain Company’s performance targets are met. These incentives are payable shortly
after the end of each year and also are accounted for as a short-term benefit under IAS 19. A provision is recognized based on the estimated
amount of the incentive payment (Note 7).

v) Long-term incentive plan (“ LTIP”) and long-term
retention plan (“ LTRP”)

The Company has adopted a long-term incentive plan (“ LTIP”).
This plan consists of a share purchase plan (equity-settled) and a share appreciation rights “ SARs” plan (cash-settled), and
therefore accounted under IFRS 2 “ Share based payment.”

The Company measures the cost of its equity-settled transactions
at fair value at the date the equity benefits are conditionally granted to employees. The cost of equity-settled transactions is recognized
in the consolidated statements of operations, together with a corresponding increase in treasury shares, over the period in which the
performance and/or service conditions are fulfilled.

During 2024, 2023 and 202