Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 367

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 367
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 return obligation (Note 23)                                            ( 250,530                ( 191,967                ( 174,769  
  Aircraft and engine variable lease expenses                                                                                                ( 135,155                ( 103,845                ( 124,532  
  Short-term leases and leases of low-value assets                                                                                             ( 4,865                  ( 7,925                  ( 6,680  
  Total amount recognized in profit or loss                                                            US$                                   ( 800,485      US$       ( 665,752      US$       ( 626,424  

  Return obligations  

The aircraft lease agreements of the Company also require
that the aircraft and engines 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 as a component of variable lease expenses and the provision
is remeasured and included as part of other liabilities, through the remaining lease term.

The Company estimates provisions
for airframe, engine overhauls and limited-life parts based on assumptions such as projected airframe usage and expected maintenance cost.
For the year ended December 31, 2024, 2023 and 2022, the Company recorded expenses related to this provision as supplemental rent,
totaling US$ 86,282 80,894$58,658

For the years ended December 31, 2024, 2023 and 2022, the
Company recorded redelivery expenses of US$135,155, US$103,845and US$124,532respectively.

  ii)      Aircraft and engines lease extensions  

Certain lease agreements contain extension options, which
the Company evaluates exercising once the lease period comes to its end, based on the market conditions at such moment. The lease liabilities
corresponding to leases on which it was decided to extend are remeasured for the period negotiated between the Company and the lessor.

During 2024 and 2023, due to the aircraft and engines lease
extension agreements, the Company reassessed the right-of-use assets and lease liabilities, resulting in net increases of US$86,678and
$73,586, respectively.

15. Accrued liabilities

a) The detail of current accrued liabilities as of December
31, 2024 and 2023 is as follows: