Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 374

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 374
---
2, the Company’s legal reserve was US$17,363,
or8.5%, respectively, of our capital stock.

For the years ended December 31, 2024, 2023 and 2022, the
Company did not allocate any amount to the legal reserve fund. As of December 31, 2024, 2023 and 2022, the Company’s legal reserve
has not reached 20% of its capital stock.

Any distribution of earnings in excess of the net tax profit
account Cuenta de Utilidad Fiscal Neta(“ CUFIN”) balance will be subject to corporate income tax, payable by the Company,
at the enacted income tax rate at that time. A10% withholding tax is imposed on dividends distributions to individuals and foreign shareholders
from earnings generated starting January 1, 2014. Dividends paid will be free of Income taxes if they come from the CUFIN. Dividends that
exceed the CUFIN and the Cuenta de Utilidad Fiscal Reinvertida(“ CUFINRE”) will cause a tax equivalent to42.86%. Dividends
paid that come from profits by the ISR will not be subject to any withholding or additional payment of taxes.

Shareholders may contribute
certain amounts for future increases in capital stock, either in fixed or variable capital. Said contributions will be kept in a special
account until the shareholders meeting authorizes an increase in the capital stock of the Company, at which time each shareholder will
have a preferential right to subscribe and pay the increase with the contributions previously made. As it is not strictly regulated in
Mexican law, the shareholders meeting may agree to return the contributions to the shareholders or even set a term in which the increase
in the capital stock must be authorized. As of December 31, 2024 and 2023, the Company had a balance of US$ 0.1 0.1

a)Earnings (loss) per share

Basic earnings (loss) per share (“ EPS” or “ LPS”)
amounts are calculated by dividing the net earnings (loss) for the year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the period.

Diluted EPS (LPS) amounts are calculated by dividing the earnings
(loss) attributable to ordinary equity holders of the parent (after adjusting for interest on the convertible preference shares, if any)
by the weighted average number of ordinary shares outstanding during the