Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 15

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 15
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 emissions units (EEUs) and the future development
of the market for eligible sustainable aviation fuels (SAF). Due to the competitive nature of the airline industry and unpredictability
of the market for air travel, we cannot assure that we may be able to increase our fares, impose surcharges or otherwise increase revenues
or decrease other operating costs sufficiently to offset the costs of meeting our obligations under CORSIA.

The USEPA has also adopted rules implementing the ICAO aircraft
engine GHG emission standards. Pursuant to the Clean Air Act, the FAA issued a final rule in February 2024 to implement these standards,
introducing new fuel efficiency certification regulations. These regulations took effect in April 2024 and will apply to larger business
and commercial jet aircraft with either new design types (not previously certified by the FAA) or existing design types that are in production
as of January 1, 2028. More stringent standards, or other restrictions, may also be adopted in the future. Additionally, governmental
authorities in the United States and other countries are increasingly focused on potential contamination resulting from the use of certain
chemicals, most notably per- and polyfluoroalkyl substances (“ PFAS”). In August 2022, the EPA published for public comment
a new rulemaking that would designate two PFAS substances (perfluorooctanoic acid and perfluorooctanesulfonic acid) as hazardous substances
under the Comprehensive Environmental Response, Compensation, and Liability Act. This rule, which was finalized in April 2024, requires
entities to immediately report current and past releases that meet or exceed the reportable quantity for such substances to USEPA’s
National Response Center. With this final rule and the introduction of any additional regulations or enforcement policies, whether by
federal policymakers or otherwise, we may incur costs in connection with reporting obligations and costs related to historic usage of
PFAS-containing materials, transitioning away from the usage of PFAS-containing products and firefighting systems, disposing of PFAS-containing
waste or remediating any residual environmental impacts.

We may also be subject to other environmental or climate-related
regulations, including relating to disclosures. For more information, see our risk factor titled “ Increasing attention to, and scrutiny
of, ESG matters could increase our costs, harm our reputation, or otherwise adversely impact our business.”

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  Table of Contents  

We are subject to a series of risks related to climate change.

Growing recognition among stakeholders of the