Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 53

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 53
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, the market price of the ADSs.

If securities or industry analysts do not publish research or reports about
our business, or publish negative reports about our business, our share price and trading volume could decline.

The trading market for our common stock depends in part on
the research and reports that securities or industry analysts publish about us or our business. If one or more of the analysts who cover
us downgrade our stock or publish inaccurate or unfavorable research about our business, our stock price would likely decline. If one
or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for our stock could decrease,
which might cause our stock price and trading volume to decline.

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If we issue additional equity securities in the future, shareholders may
suffer dilution, and trading prices for our securities may decline.

In connection with our business strategy of expanding through
acquisitions, we may finance corporate needs and expenditures, or future transactions, by issuing additional capital stock. Any such issuances
of capital stock would result in the dilution of shareholders’ ownership stake. In addition, future issuances of our equity securities
or sales by our shareholders or management, or the announcement that we or they intend to make such an issuance or sale, could result
in a decrease in the market price of the ADSs and Series A shares.

Provisions of Mexican law and our by-laws make a takeover more difficult,
which may impede the ability of holders of Series A shares or ADSs to benefit from a change in control or to change our management
and board of directors.

Provisions of Mexican law and our by-laws may make it difficult
and costly for a third party to pursue a tender offer or other takeover attempt resulting in a change of control. Holders of ADSs may
desire to participate in one of these transactions but may not have an opportunity to do so. For example, our by-laws contain provisions
which, among other things, require board approval prior to any person or group of persons acquiring, directly or indirectly, (i) 5%
or more of our shares (whether directly or by acquiring ADSs or CPOs), or (ii) 20% or more of our shares (whether directly or by
acquiring ADSs or CPOs) and in the case of this item (iii) if such approval is obtained, require the acquiring person to make a tender
offer to purchase 100% of our