Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 306

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 306
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 with credit and debit cards, and therefore, they are non-interest bearing and are mainly on terms of24to48hours. The
Company has the right of collection at the beginning of the contracts, and there are nodiscounts, payment incentives, bonuses or other
variable considerations after the purchase that could modify the amount of the transaction price.

The Company’s tickets are non-refundable. However,
in the event that the company cancels a flight due to causes attributable to the airline, the passengers are entitled to either move their
flight at no additional cost, receive a refund or obtain a voucher. No revenue is recognized until either the voucher is redeemed, and
the associated flight occurs, or the voucher expires. When vouchers issued exceed the amount of the original amount paid by the passenger,
the excess is recorded as reduction of the operating revenues. All the Company’s revenues related to future services are rendered
through an approximate period of 12 months.

Contract with FEMSA

On January 23, 2023, the Company, through its subsidiary Concesionaria,
entered into an agreement with Lealtad Mercadotecnia y Conocimientos Agregados, S. A. P. I. de C. V. (the “ Supplier”), a subsidiary
of Fomento Económico Mexicano, S. A. B. de C. V. (FEMSA). Under this contract, Concesionaria became a participating company in a coalition
that integrates a Loyalty Program called “ Spin Premia®,” established and managed by the Supplier. This Program offers
exclusive benefits to its users, allowing them to accumulate and redeem reward points with OXXO and Volaris.

Under the “ Spin Premia” agreement, customers participating
in this program are entitled to accumulate or redeem points when they purchase goods or use services with any of the companies that are
part of the coalition.

The points accumulated for services provided by the Company
are recorded as a reduction in revenues. The points redeemed for the Company’s services are recorded as deferred revenue until the
time when the service is provided, or the points expire. The value of points is determined according to contractual conditions between
the Company and FEMSA.

d) Cash and cash equivalents

Cash and cash equivalents are represented by bank deposits,
short-term deposits on demand and highly liquid investments with maturities close to three months from the original purchase date, established
in the agreements. For the purposes of the consolidated statements of cash flows