Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 122

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 122
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of our current or future competitors may have greater liquidity and access to capital and may serve more routes than we do.

Our main competitive advantages are our low base fares and
our focus on VFR travelers, leisure travelers and cost-conscious business travelers. These low base fares are facilitated by our low CASM,
which is the lowest among Latin American publicly traded airlines. In 2024, our CASM was U. S. $8.03 cents, compared to an average non-stage
length adjusted CASM of U. S. $10.29 cents for the other Latin American publicly traded airlines, including Azul, Copa, and LATAM. We also
have lower costs than our U. S.-based publicly traded target market competitors, including Alaska, American, Delta, JetBlue, Southwest,
Frontier, Spirit, Allegiant and United, which had an average non-stage-length adjusted CASM of U. S. $14.61 cents in 2024.

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Our main competitors in Mexico are Grupo Aeroméxico
and Viva. Internationally, we compete with Grupo Aeroméxico, Viva and many U. S.-based carriers, including Alaska, American, Delta
and United. In the Mexico - Central America market, our main competitors are Grupo Aeroméxico and Avianca, while in the Central
America - U. S. market our main competitors are Avianca and Delta. In the Mexico - South America market our main competitors are Grupo
Aeroméxico, Viva and LATAM.

In 2024, the two Mexican ultra low-cost carriers, Volaris
and Viva, held 71.3% of the domestic market based on passenger flight segments. Volaris had 33.3% of the domestic market, according to
the AFAC.

As of December 31, 2024, the number of commercial aircraft
in service in Mexico increased to 389, as compared to 369 as of December 31, 2023, according to AFAC. This 5% increase was comprised mainly
of narrow body aircraft, including 44 Airbus A320neos, 101 Airbus A320s, 46 Boeing 737s, 43 Airbus A321neos and 20 Airbus A321s.

As of December 31, 2024, AFAC reports indicate that Grupo
Aeroméxico’s subsidiaries Aeroméxico and Aeromé