Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 326

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 326
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 deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale,
issuance or cancellation of treasury shares. Any difference between the carrying amount and the consideration received, if reissued, is
recognized in additional paid-in capital. Share-based payment options exercised during the reporting period were settled with treasury
shares (Note 18).

w) Operating segments

Management of Controladora monitors the Company as a single
business unit that provides air transportation and related services; accordingly it has only oneoperating segment.

The Company has twogeographic areas identified as domestic
(Mexico) and international (United States of America, Central America and South America) (Note 26).

x) Current versus non-current classification

The Company presents assets and liabilities in the consolidated
statements of financial position based on current/non-current classification. An asset is current when it is: (i) expected to be realized
or intended to be sold or consumed in normal operating cycle, (ii) expected to be realized within 12 months after the reporting period
or (iii) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period. All other assets are classified as non-current.

A liability is current when: (i) it is expected to be settled
in normal operating cycle, (ii) it is due to be settled within 12 months after the reporting period or (iii) there is no unconditional
right to defer the settlement of the liability for at least 12 months after the reporting period. The Company classifies all other liabilities
as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

y) Impact of new International Financial Reporting Standards

New and amended standards and interpretations already effective

The Company applied for the first-time certain standards and
amendments, which are effective for annual periods beginning on or after January 1, 2024 and then must be applied retrospectively. The
Company has not early adopted any other standard interpretation or amendment that has been issued but is not yet effective.

The nature and the effect of these changes are disclosed below:

Amendments to IAS 1: Classification of Liabilities as
Current or Non-current

In 2020 and 2022, the IASB issued amendments to paragraphs
69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:

  What is meant by