Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 143

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 143
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-off, and navigation expenses in 2024 was primarily driven by a 14.0% reduction in total departures and
a 12.0% decline in passenger volume compared to 2023.

Salaries and Benefits. The 6.3% increase in salaries
and benefits in 2024 was primarily driven by the annual salary increase and the provision for employee profit sharing.

Depreciation of Right of Use Assets. The 13.2%
increase in depreciation of right-of-use assets in 2024 was primarily driven by fleet expansion, including the addition of 14 new aircraft.

Sales, Marketing and Distribution Expenses. The
1.3% increase in sales, marketing, and distribution expenses in 2024 was primarily driven by higher marketing expenditures aimed at promoting
our routes and increasing our revenues.

Other Operating Expenses. The 18.0% decrease in
other operating expenses in 2024 was primarily driven by the reduction in administrative and operational support expenses.

Aircraft and Engine Variable Lease Expenses. The
30.2% increase in aircraft and engine variable expenses in 2024 was primarily due to return accruals recorded during the year. Additionally,
in 2023, we recognized benefits from the remeasurement of aircraft related to lease extensions.

Maintenance Expenses. The 2.0% increase in maintenance
expenses in 2024 was driven by routine maintenance activities, resulting from a higher average fleet size during the year.

Depreciation and Amortization. The 36.4% increase
in depreciation and amortization in 2024 was primarily due to higher amortization of major maintenance events, driven by the aging of
our fleet. These maintenance costs are accounted for using the deferral method. In 2023 and 2024, we recorded amortization of major maintenance
leasehold improvements totaling U. S. $114.9 million and U. S. $150.6 million, respectively.

2022 compared to 2023

                                                          For the years ended December 31,                                            
                                                                                      2022           2023      Variation              
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                   (In thousands of dollars, except for %)                                            
  Other operating income                                                          (25,066)       (54,710)       (29,644)       118.3  
  Fuel expense                                                                   1,299,254      1,165,078      (134,176)      (