Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 210

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 8
Chunk 210
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ITEM 8 FINANCIAL INFORMATION

  Consolidated Statements and Other Financial Information  

Our annual consolidated financial statements prepared in accordance
with IFRS on pages F-1 through F-87 are filed as part of this annual report.

  122  

  Table of Contents  

Legal Proceedings

We are subject to various legal proceedings in the ordinary
course of our business that we believe are incidental to the operation of our business. We believe that the outcome of the proceedings
to which we are currently a party will not, individually or in the aggregate, have a material adverse effect on our consolidated financial
statements.

Certain legal proceedings may require us to incur financial
obligations. Based on the plaintiffs’ claims, as of December 31, 2022, 2023, and 2024, these proceedings may amount to a total of
U. S. $7.8 million, U. S. $29.4 million, and U. S. $37.1 (U. S. $2.1 million related to legal matters, U. S. $5.0 million related to labor
matters and U. S. $30.0 million related to other tax matters), respectively.

Dividend Policy

We have not paid any cash dividends in the past and do not
expect to pay any cash dividends on our common stock for the foreseeable future. We currently intend to retain any additional future earnings
to finance our operations and growth. Any future determination to pay cash dividends on our common stock will be at the discretion of
our shareholders on the recommendation of our board of directors and will depend on our earnings, financial condition, results of operations,
capital requirements and contractual, regulatory and other restrictions on the payment of dividends and other factors our shareholders
deem relevant. In addition, we may not pay any dividend unless such dividend is paid from our net profit account and the financial statements
including such net profit and the payment of the relevant dividend have been approved by a shareholder resolution. Furthermore, our revolving
line of credit with Santander and Bancomext may limit our ability to declare and pay dividends in the event that we fail to comply with
the payment terms thereunder. See Item 5: “ Operating and Financial Review and Prospects - Liquidity and Capital Resources - Loan
Agreements”.

Mexican law requires that at least 5% of a company’s
net income each year (after profit sharing and other deductions required by Mexican law) be allocated to a legal reserve fund