Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 46

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 46
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 AI Technologies become incompatible with our solutions or unavailable for use, or if the providers of such models unfavorably
change the terms on which their AI Technologies are offered or terminate their relationship with us, our solutions may become less appealing
to our customers and our business will be harmed. In addition, to the extent any third-party AI Technologies are used as a hosted service,
any disruption, outage, or loss of information through such hosted services could disrupt our operations or solutions, damage our reputation,
cause a loss of confidence in our solutions, or result in legal claims or proceedings, for which we may be unable to recover damages from
the affected provider.

Moreover, the regulatory framework for AI Technologies is
rapidly evolving as many federal, state and foreign government bodies and agencies have introduced or are currently considering additional
laws and regulations. Additionally, existing laws and regulations may be interpreted in ways that would affect our ability to develop
or deploy AI Technologies. As a result, implementation standards and enforcement practices are likely to remain uncertain for the foreseeable
future, and we cannot yet determine the impact future laws, regulations, standards, or market perception of their requirements may have
on our business and may not always be able to anticipate how to respond to these laws or regulations.

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Political, social and geopolitical events, possible changes in public policies
and other risks in some of the countries where we operate, which are inherent to the operations of an international company, could have
a material adverse effect on our business, financial condition, liquidity and results of operations.

We are exposed to the circumstances prevalent in the countries
in which we operate. Although the majority of our revenue originates from our Mexican domestic operations, we also conduct an important
part of our operations in the United States and Central and South America. For the year ended December 31, 2024, 38% of our total revenues
were attributable to international operations. Like other companies with international operations, political, economic, geopolitical or
social developments in the countries where we operate or elsewhere, such as elections, new governments, changes in public policy, economic
circumstances, laws and/or regulations, trade policies, political agreements or disagreements, civil disturbances and a rise in violence
or the perception of violence, could have a material adverse effect in the countries where we operate or on the global financial markets,
and in turn on our business, financial condition, liquidity and results of operations.

A change in federal or national government or its conditions
and the political