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

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 30
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 our total routes. The
Mexico City International Airport has been declared saturated since 2014, on August 31, 2023, the AFAC issued a resolution that further
reduced the number of operations in the Mexico City International Airport to a maximum of 43 operations per hour, which took effect on
January 8, 2024. In response, we reduced capacity at the Mexico City International Airport, redeploying six aircraft lines to other domestic
airports by the end of 2024. We cannot guarantee that in the future we may maintain or obtain additional slots in Mexico City.

In addition, we cannot provide any kind of assurance with
respect to the changes, risks and costs related to the operation of Mexico City’s Airport System (Sistema Aeroportuario de la
Ciudad de México), including having to operate more than one airport in the Mexico City metropolitan area due to the opening
of the Felipe Ángeles International Airport on March 21, 2022, which results in having to operate multiple airports within the
catchment area of Mexico City metropolitan region. Any significant increase in competition, redundancy in demand for air transportation
or disruption in service or the fuel supply at these airports, could have a material adverse impact on our business, results of operations
and financial condition. The conditions affecting services at the airports or our slots in these cities, such as adverse changes in local
economic or political conditions, negative public perception of these destinations, unfavorable weather conditions, violent crime or drug
related activities, could also have a material adverse impact on our business, results of operations and financial condition.

Our maintenance costs will increase as our fleet ages.

As of December 31, 2024, the average age of our 143 aircraft
in service was 6.4 years. Our relatively new aircraft require less maintenance now than they will in the future. Our fleet will require
more maintenance as it ages and our maintenance and repair expenses for each of our aircraft will be incurred at approximately the same
intervals. In addition, the terms of certain of our lease agreements require us to pay supplemental rent, also known as maintenance deposits,
to be paid to the lessor in advance of the performance of major maintenance, resulting in our recording significant aircraft maintenance
deposits on our statements of financial position. During the year ended December 31, 2024, we entered into a series of transactions designed
to provide us with credit letters intended to fund aircraft maintenance deposits. The credit letters deposits increased overall