Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 2

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 2
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several articles of the Political Constitution of the United Mexican States regarding the Federal Judicial Branch. The reforms to the
Federal Judicial Branch includes, among others:(i) eliminating the Federal Judiciary Council (“ CJF”) and transferring its
administrative functions to a judicial administration body (appointed by the Powers of the Union), while its disciplinary functions will
be transferred to a Judicial Discipline Tribunal (elected by popular vote), (ii) the reduction from 11 to nine Justices of the Supreme Court
of Justice of the Nation (“ SCJN”), including a reduction in the term of office of the Justices from 15 to 12 years and the
elimination of the SCJN chambers, (iii) the election by popular vote, following a call and nomination by the three powers of the union
of Justices of the SCJN, electoral magistrates, circuit magistrates, military discipline tribunal magistrates, and district judges, (iv)
changes to remunerations of judicial civil servants so that no judicial official earns more than the President, (v) allowing the Electoral
Tribunal of the Judicial Power of the Federation to resolve challenges in key judicial elections, (vi) extending the scope of impeachment
and establishing procedures for criminally prosecuting judicial officials, and (vii) strengthening the independence of local judicial
powers.

We cannot assure you that changes in Mexican laws, regulations
and policies, including those recently adopted, currently proposed and any changes that may be adopted in the future, will not adversely
affect our business, results of operations, financial condition and prospects or the price of the ADSs.

Adverse economic conditions in Mexico and the other countries
in which we operate may adversely affect our business, results of operations and financial condition.

We are a Mexican corporation and most of our operations are
conducted in Mexico. For the year ended December 31, 2024, 62% of our total revenues were attributable to our Mexican domestic operations.
As a result, our business performance is closely linked to the performance of the Mexican economy. In 2022, 2023, and 2024, the Mexican
economy grew 3.1%, 3.2% and 1.2%, respectively, in terms of gross domestic product (“ GDP”), according to the INEGI. Moreover,
in the past, Mexico has experienced prolonged periods of economic crises, caused by internal and external factors, over which we have
no control. Those periods have been characterized by exchange rate