Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 64

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 64
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 grow our non-passenger revenue and total revenue.
We plan to continue to use low base fares to stimulate additional passenger demand, shift bus passengers to air travel and increase our
load factor. In 2024, our average load factor was 86.8%, compared to an average load factor of 84.1% for the other Latin American publicly
traded airlines and 82.6% for our U. S.-based publicly traded target market competitors. Higher load factors help us generate additional
non-passenger revenue and total revenue, which in turn, allow us to further lower base fares and stimulate new demand.

In addition to offering low fares, we also aim to deliver
a suitable and efficient flying experience to our passengers. We strive to deliver on-time performance to our customers, with an 83.6%
on-time performance rate in 2024. We believe that we have developed strong brand recognition due to our focus on delivering good value
and a positive traveling experience to our customers. We believe that our corporate culture of positive “customer relationship management”
has also been a key element of our success.

Principal Capital Expenditures

For the years ended December 31, 2022, 2023, and 2024 we incurred
capital expenditures of U. S. $353.9 million, U. S. $491.1 million, and U. S. $600.7 million, respectively, which included acquisitions of
flight equipment, spare engines, rotable spare parts, furniture and equipment and intangible assets. For
a discussion of our capital expenditures and future projections. See Item 5: “ Operating and Financial Review and Prospects - Liquidity
and Capital Resources.”

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  Table of Contents  

Mexican Regulation

Operational Regulation

Air transportation services for passengers provided on a regular
basis, as opposed to charter flights and permits, are considered a public service in Mexico. To render regular air transportations services,
a concession granted by the Mexican federal government is required. The legal framework of the air transportation industry in Mexico is
primarily established by the Mexican Aviation Law (Ley de Aviación Civil) and its regulations, the Mexican Airport Law ( Ley
de Aeropuertos) and its regulations, the Mexican General Communications Ways Law (Ley de Vias Generales de Comunicación),
and applicable Mexican Official Rules ( Normas Oficiales Mexicanas). The main regulatory authority overseeing air transportation
is the SICT, acting mainly through the