Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 123

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 123
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xico Connect, had fleets of 114 and 37 aircraft, respectively,
as compared to 105 and 40, respectively, as of December 31, 2023.

In April 2023, Interjet declared bankruptcy in Mexico.

Viva, our largest competitor by domestic market share in 2024,
increased its fleet from 80 as of December 31, 2023 to 96 as of December 31, 2024, according to AFAC.

As of 2024, our international market share considering all
airlines flying internationally to and from Mexico, remained stable at 11.4%, consistent with our market share in December 2023. We also
face domestic competition from ground transportation alternatives, primarily long-distance bus companies. There is a large bus industry
in Mexico, with total passenger segments of approximately 3.1 billion in 2023, of which approximately 83.7 million were executive and
luxury passenger segments, according to the SICT in Mexico and which could include both long- and short-distance travel. We set certain
of our promotional fares at prices lower than bus fares for similar routes in order to stimulate demand for air travel among passengers
who in the past have traveled long distances primarily by bus. There are limited passenger rail services in Mexico.

Our main competitors for the international routes between
Mexico and the United States are Grupo Aeroméxico, Alaska, American, Delta and United. We reached 48.2% market share on the routes
that we operate and 14.8% market share considering all routes between Mexico and the United States in 2024, according to the AFAC.

Seasonality
and Volatility. Our results of operations for any interim period are not necessarily indicative of those for the entire year
because our business is subject to seasonal fluctuations. We generally expect demand to be greater during the summer, during December
and around Easter, which can fall either in the first or second quarter, compared to the rest of the year. Our business is also volatile
and highly affected by economic cycles and trends. Consumer confidence and discretionary spending, fear of terrorism or war, health outbreaks,
weakening economic conditions, fare initiatives, fluctuations in fuel prices, labor actions, weather and other factors have resulted in
significant fluctuations in our revenues and results of operations in the past. We believe, however, that demand for business travel historically
has been more sensitive to economic pressures than demand for low-price leisure and VFR travel, which are the