Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 28

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 28
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.1 billion over the next 12 years. In addition, we have significant obligations for aircraft and engines that we ordered from Airbus,
IAE, and P& W, respectively, for delivery over the next seven years. Our ability to pay the fixed costs associated with our contractual
obligations will depend on our operating performance and cash flow, which will in turn depend on, among other things, the success of our
current business strategy, fuel prices, further weakening or improvement in the Mexican and U. S. economies, whether financing is available
on reasonable terms or at all, as well as general economic and political conditions and other factors that are, to some extent, beyond
our control. The amount of our aircraft related fixed obligations could have a material adverse effect on our business, results of operations
and financial condition and could:

  require a substantial portion of cash flow from our operations for operating lease and maintenance deposit payments, thereby reducing  

  limit our ability to make required pre-delivery deposit payments to Airbus for our aircraft on order;  

  limit our ability to obtain additional financing to support our expansion plans and for working capital and other purposes on acceptable  

  make it more difficult for us to pay our other obligations as they become due during adverse general economic and market industry           

  reduce our flexibility in planning for, or reacting to, changes in our business and the airline industry and, consequently, place  

  cause us to lose access to one or more aircraft and forfeit our rent and purchase deposits if we are unable to make our required aircraft  

A failure to pay our operating leases and other fixed cost obligations
or a breach of our contractual obligations could result in a variety of adverse consequences, including the exercise of remedies by our
creditors and lessors. In such a situation, it is unlikely that we would be able to fulfill our obligations, make required lease payments
or otherwise cover our fixed costs, which would have a material adverse effect on our business, results of operations and financial condition.

Inability to obtain lease or debt financing for additional aircraft
would impair our growth strategy.

We currently finance our aircraft through operating leases,
as well as sale and leaseback arrangements. In the future, we may elect to own a portion of our fleet, as well as continue to lease aircraft
through long-term operating leases. We may not be able to obtain lease or debt financing on terms attractive to us or at all. To the extent
we cannot obtain such financing on acceptable terms or at all, we may be required