Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 5

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 5
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 partners. The annual
rate of inflation, as measured by changes in the Mexican National Consumer Price Index, calculated and published by the Mexican Central
Bank and INEGI, was 7.82% for 2022, 4.66% for 2023, and 4.21% in 2024. In addition, since the beginning of 2021, inflation, as measured
by the Consumer Price Index, has increased in advanced and emerging market economies, reaching record high levels, driven mainly by supply
chain issues (including input shortages, labor constraints, and rising commodity prices), excess demand for goods and services, and significant
increases in energy prices. Although, inflation decreased in 2023 in most countries, it remained above the inflation targets set by Central
Banks, as indicated by the Mexican Central Bank, while reference interest rates were high, reflecting restrictive monetary policies.
Throughout 2024, inflation continued to gradually decline, and Central Banks began cutting interest rates, though they remained cautious
due to ongoing macroeconomic uncertainties. The global environment continues to be complex, marked by heightened volatility in financial
markets. High inflation rates could adversely affect our business and results of operations by reducing consumer purchasing power, thereby
adversely affecting consumer demand for our services, increasing our costs beyond levels that we could pass on to our customers and by
reducing the benefit of our revenues when inflation outpaces our ability to raise prices.

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Currency fluctuations or the devaluation and depreciation of
the U. S. dollar could adversely affect our business, results of operations, financial condition and prospects.

Foreign exchange gains or losses included in our total cost
of comprehensive financing resulted primarily from the impact of changes in the US dollar-peso exchange rate on our Mexican peso-denominated
monetary liabilities (such as Mexican peso-denominated debt, Mexican pesos financial debt, suppliers and other accounts payable) and assets
(such Mexican peso-denominated cash, cash equivalents, accounts receivable, guarantee deposits and derivative financial instruments denominated
in Mexican pesos). As of December 31, 2022, 2023 and 2024, our net monetary Mexican peso and other currencies liability position denominated
in U. S. dollars was U. S. $0.2 billion, U. S. $0.2 billion, and U. S. $0.4 billion, respectively. In 2022, 2023, and 2024, as