Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 36

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 36
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 app, maintenance systems and check-in kiosks. To support our
operations, for example, our website and reservation system must be able to accommodate a high volume of passengers, maintain secure information
and deliver flight information, among other things. Substantially all of our tickets are issued to passengers as electronic tickets. We
depend on our reservation system, which is hosted and maintained by third-party service providers, to be able to securely and reliably
issue, track and process these electronic tickets. Any material failure, interruption, disruption, or security incident affecting these
systems, whether due to internal issues, cyber threats, or third-party service providers disruptions, that adversely impact our ability
to conduct business could result in material revenue loss and reputational harm. If our reservation system fails or experiences interruptions
or denial of service and we are unable to book seats for a significant period of time, we could lose material amounts of revenues as customers
book seats on competing airlines. We have experienced short duration reservation system outages from time to time and expect to experience similar outages in the future. Furthermore,
if our flight operations system were to fail, our operations would be materially and adversely affected.

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As our reliance on third-party technology providers increases,
there is an inherent risk that service interruptions, software failures, or security vulnerabilities affecting these providers could have
a material impact on our operations. For example, industry-wide incidents have already occurred that involved unintended software updates,
misconfigurations, or cybersecurity breaches in third-party systems that led to widespread service disruptions. While we actively monitor
and work with our technology partners to enhance system resilience and business continuity planning, we cannot eliminate the risk of disruptions
originating from third-party providers. In the event of an extended system outage or operational failure, our ability to process reservations,
manage flight operations, or provide customer service could be significantly affected and lead to material operational and financial consequences.

We rely on third-party service providers of other automated
systems for technical support, software licensing, telecommunications, network, system maintenance, back-office systems and software upgrades.
Significant service disruptions, malfunctions or delays with respect to these automated systems, including a failure to provide necessary
hardware or software updates or technical support for any key systems could materially harm our business through the loss of important
data, increased expenses and decreased revenues. In the event that one or more of our primary technology or systems’ vendors goes
into bankruptcy, ceases operations or fails to perform as contemplated in the agreements,