Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 125

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 125
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 Jet Fuel 54 to hedge 25.8 million gallons, covering a portion of the projected fuel
consumption for the fourth quarter of 2024 and the first quarter of 2025. In October 2024, we executed additional Asian call options on
US Gulf Coast Jet Fuel 54 to hedge an additional 14.5 million gallons, also corresponding to a portion of the anticipated fuel consumption
for the same periods.

Our fuel cost is referenced mainly to Platts US Gulf
Coast and Platts US West Coast, which are the commodities utilized to determine the cost of the fuel provided by most of our suppliers.
As of December 31, 2024, we purchased most of the domestic fuel under the ASA fuel service contract, and our international fuel under
the World Fuel Services, AvFuel, Shell, BP Products North America, Chevron, Associated Energy Group, Puma Energy Group, Total Energies,
Titan, Vitol and Terpel fuel service contracts. The cost and future availability of fuel cannot be predicted with any degree of certainty.

The airline industry is impacted by the price and availability
of fuel. Fuel is our largest cost, representing 33% of our total operating expense in 2024, and continuous volatility in fuel costs or
significant disruptions in the supply of fuel could have a material adverse effect on our business, statements of operations and financial
position.

Currency fluctuations. The value of the U. S.
dollar has been subject to significant fluctuations with respect to the Mexican peso in the past and may be subject to significant fluctuations
in the future. If the Mexican peso decreases in value against the U. S. dollar, our operating demand could be adversely affected.

We manage our foreign exchange risk exposure by a policy
of matching, to the extent possible, receipts and local payments in each individual currency. However, we are exposed to fluctuations
in exchange rates between the U. S. dollar and the peso.

As of December 31, 2023 and 2024, our net liability
monetary position of Mexican pesos and other currencies denominated in U. S. dollars was U. S. $0.2 billion and U. S. $0.4 billion, respectively.
In 2022, 2023 and 2024, as a consequence of either the appreciation or depreciation of the U. S. dollar against the peso, and our net monetary
liability position in Mexican peso and other currencies, we recorded foreign exchange gains (losses) of U