Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 54

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 54
---
 shares and CPOs (or other securities that represent them) at a substantial premium over the market price
of our shares to be determined by the board of directors, based upon the advice of a financial advisor.

These provisions could substantially impede the ability of
a third party to control us, and be detrimental to shareholders desiring to benefit from any change of control premium paid on the sale
of the company in connection with a tender offer. See Item 10: “ Additional Information - Memorandum and Articles of Association - Overview - Change
of Control Provisions” and “ Additional Information - Memorandum and Articles of Association - Overview - Voting
Rights.”

Substantial sales of the ADSs or Series A shares could cause the price
of the ADSs or Series A shares to decrease.

We may finance future corporate needs and expenditures by
using shares of Series A common stock, to be evidenced by Series A shares, CPOs or ADSs. Any such issuances of such shares could
result in a dilution of your ownership stake or a decrease in the market price of the ADSs or the Series A shares. In addition, our
principal shareholders are entitled to rights with respect to registration of their shares under the Securities Act, pursuant to the registration
rights agreement we have on file with the SEC. See Item 7: “ Major Shareholders and related Party Transactions - Major Shareholders.”
For example, on December 11, 2020 we completed a primary follow-on equity offering in which we offered 134,000,000 CPOs, in the form
of ADSs, at a price to the public of U. S. $11.25 per ADS in the United States and other countries outside of Mexico, pursuant to
our shelf registration statement filed with the SEC. In connection with that offering, the underwriters exercised their option to purchase
up to 20,100,000 additional CPOs in the form of ADSs, for a total offering of 154,100,000 CPOs in the form of ADSs. The securities issued
pursuant to the offering are eligible for trading in the public market, which may have an adverse effect on the market price of our Series A
shares and ADSs.

Non-Mexican investors may not hold our Series A shares directly and
must have them held in a CPO trust, which releases CPOs underlying Series A shares, at all times.

Each ADS represents ten CPOs and each CPO represents a financial