Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 98

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 98
---
 achieving and maintaining profitability. We have designed our fare structure
to balance our load factors and yields in a way that we believe will generate the highest revenue per block hour on our flights. Most
of our seats are sold in the low and mid-fare ranges. Except for special offers and promotions, we do not have advance purchase restrictions,
minimum stays, or any other fare restrictions, such as required Saturday night stays. For some of our flights, we set very low discounted
base fares based on fares charged by bus lines for travel to the same destinations, aiming to expand our customer base by adding customers
who have previously used other forms of transportation.

  64  

  Table of Contents  

Our base fare (“zero”) includes access to a V-Club
membership and one personal item for domestic and international flights. Our customers may purchase additional products and services for
a fee by choosing another type of fare (“basic” or “plus”) or by customizing their trip with products and services
directly at any time before the flight. We increase the prices of these products and services the closer the customer purchases them to
the departure date as well as using dynamic pricing. Some examples of the additional products and services that our customers may purchase
include higher baggage allowances, preferred seating, and food, beverages, or other products on board. All of our fares are non-refundable
and subject to change fees.

We use yield management in an effort to maximize revenues
per flight, which is also linked to our route and schedule planning and sales and distribution methods. Yield management is an integrated
set of business procedures, mathematical models, and historical trends that allows us to understand markets, anticipate customer behavior
and respond quickly to opportunities.

The number of seats we offer at each fare class in each market
is based on a continuous process of analysis and forecasting. Past booking history, seasonality, the effects of competition and current
booking trends are used to forecast demand. Current fares and knowledge of upcoming events at destinations we serve that we believe will
affect traffic volumes are also included in our forecasting model to arrive at an optimal seat allocation for our fares on specific routes.
We use a combination of approaches, taking into account yields and flight load factors, depending on the characteristics of the markets
served, to design a strategy to achieve the best possible TRASM by balancing the average fare charged and ancillary services sold against
the corresponding effect on our load factors.

Customer Service

We are committed to providing our customers with value for their