Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 115

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 115
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)       (7)  
  Fuel expense                                       46        36        28  
  Landing, take-off and navigation expenses          13        15        16  
  Salaries and benefits                              10        12        13  
  Depreciation of right of use assets                11        11        13  
  Sales, marketing and distribution expenses          4         5         6  
  Other operating expenses                            4         6         5  
  Depreciation and amortization                       3         4         6  
  Aircraft and engine variable lease expenses         4         3         4  
  Maintenance expenses                                3         3         3  
  Total operating expenses, net                      97        93        87  
  Operating income                                    3         7        13  
  Finance income                                      0         1         2  
  Finance cost                                      (7)       (7)       (9)  
  Foreign exchange gain (loss), net                   0       (1)         0  
  (Loss) income before income tax                   (4)         0         6  
  Income tax benefit (expenses)                       2         0       (2)  
  Net (loss) income                                 (2)         0         4  

Revenue Recognition

Passenger revenues

Revenues from the air transportation of passengers are recognized
at the earlier of when the service is provided or when the non-refundable ticket expires on the date of the scheduled travel.

Ticket sales for future flights are initially recognized
as contract liabilities under the caption “unearned transportation revenue” and, once we provide the transportation service
or when the non-refundable ticket expires on the date of the scheduled travel, the earned revenue is recognized as passenger ticket revenues
and the unearned transportation revenue is reduced by the same amount. All of our tickets are non-refundable; however, certain tickets
may be changed upon payment of a fee. Additionally, we do not operate our own frequent flier program.

The most significant passenger revenue includes revenues generated
from: (i) fare revenue and (ii) other passenger revenues. Other passenger services include but are not limited to fees charged for excess
baggage, bookings through the call center or third-party agencies, advanced seat selection, itinerary changes and charters. They are recognized
as revenue when the obligation of passenger transportation service is provided by us or when the