Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 40

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 40
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Restrictions on or increased taxes applicable to fees or other charges for
ancillary products and services paid by airline passengers could harm our business, results of operations and financial condition.

Our non-passenger revenues are generated from
(i) air travel-related services, (ii) revenues from non-air-travel related services and (iii) cargo services. Air travel-related 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, charters and passenger charges for no-show tickets. Revenues from non-passenger revenues mainly include,
but are not limited to, commissions charged to third parties for the sale of trip insurance and other services. Additionally, services
not directly related to air transportation include sales of V-Club memberships. Restrictions on or increased taxes applicable to fees
or other charges for ancillary products and services paid by airlines passengers could harm our business, results of operations and financial
condition.

The DOT has implemented many rules that affect foreign air
carriers. For example, DOT rules require that any airfare advertisement or other solicitation state the entire price to be paid by the
consumer, including mandatory taxes, fees and carrier-imposed charges. DOT rules also require the disclosure of the cost of optional products
and services, including baggage charges. The rules additionally restrict airlines from increasing ticket prices post-purchase (other than
increases resulting from changes in government-imposed fees or taxes, the possibility of which must be disclosed to the consumer, and
the consumer’s consent regarding same must be obtained, prior to purchase). Failure to remain in full compliance with these and
other DOT rules may subject us to fines or other enforcement action, including requirements to modify our passenger reservations system,
which could have a material adverse effect on our business.

In addition, the U. S. Congress and Federal administrative
agencies have undertaken investigations of the airline industry practice of unbundling fees for optional services. If new taxes are imposed
on non-passenger revenues, or if other laws or regulations are adopted that make unbundling of services impermissible or more cumbersome
or expensive than the existing rules, our business, results of operations and financial condition could be materially adversely affected.
Congressional and other government agency scrutiny may also change industry practice or public willingness to pay for ancillary services.
See also “ - Compliance with airline industry regulations involves significant costs and regulations enacted in Mexico, the
United States, Central America and South America may increase our costs significantly in