Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 113

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 113
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ITEM 4A UNRESOLVED STAFF COMMENTS

None.

ITEM 5 OPERATING AND FINANCIAL REVIEW AND
PROSPECTS

A. Operating Results

You should read the following discussion of our financial
condition and results of operations in conjunction with our consolidated financial statements and the notes thereto included elsewhere
in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute
to these differences include those discussed below and elsewhere in this annual report, particularly in “ Risk Factors.”

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  Table of Contents  

Key Performance Indicators

The following measures are often provided and used by our
management, analysts, and investors to enhance comparability of year-over-year results, as well as to compare results to other airlines:
Revenue passenger miles, or RPMs; Average passenger revenue per booked passenger; Average non-passenger revenue per booked passenger;
Total operating revenue per ASM, or TRASM; Passenger Revenue per ASMS, or RASM; Operating expenses per ASM, or CASM; CASM ex fuel, and
average economic fuel cost per gallon. Average passenger revenue per booked passenger represents the total passenger revenue divided by
booked passengers. The CASM ex fuel represents total operating expenses, net excluding fuel expense divided by ASMs. Average economic
fuel cost per gallon represents total fuel expense net of hedging effect, divided by the total number of fuel gallons consumed. We believe
this operating data is useful in reporting the operating performance of our business, however, these measures may differ from similarly
titled measures reported by other companies and should not be considered in isolation or as a substitute for measures of performance in
accordance with IFRS.

Description of Our Principal Line Items

Passenger Revenues

Our passenger revenues include: (i) passenger revenues and
(ii) other passenger revenues.

We derive our operating revenues primarily from transporting
passengers on our aircraft and some tickets sold by other airlines such as Frontier. 48% of our total operating revenues were derived
from passenger fares in 2024. Passenger revenues are based upon our capacity, load factor and the average passenger revenue per booked
passenger. Our capacity is measured in terms of ASMs, which represents the number of seats we make available on our aircraft multiplied
by the number of miles the seats are flown. Load factor, or the percentage of our capacity that is actually used