Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 92

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 92
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 the agreement with Airbus pursuant to which we exercised our right to purchase 25 additional A321neo aircraft which Airbus committed
to deliver in 2030.

On November 26th, 2024, the Company entered into an amendment
agreement with Airbus to the existing purchase agreement to reschedule the deliveries for the 131 pending aircraft between 2025 and 2031.

Our fleet has reached 145 aircraft as of the date of this
annual report. We intend to maintain a young and a common fleet family because we believe it is the most efficient option for our markets
and operations.

Grow
Passenger Volume by Profitably Establishing New Routes. We believe our focus on low fares and customer service will stimulate
growth in overpriced, underserved and inefficient new markets. We will continue our disciplined approach to domestic and international
market entry by using our rigorous selection process where we identify and survey possible target markets that have the potential to be
profitable within our business model.

For example, in 2024, we added 18 new routes, including 9
domestic routes and 9 international routes. As part of our continuous monitoring of routes and markets for profitability, we have a proven
track record of withdrawing routes that do not meet our profitability expectations. For our future growth opportunities, we have identified
approximately 132 routes within Mexico serving markets in excess of 250,000 inhabitants and other leisure destinations,
and that have stage lengths of at least 180 miles, and approximately 166 routes internationally that have stage lengths of at least 410
miles.

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  Table of Contents  

Our Operations

Passenger Revenues

Passenger
revenues accounted for U. S. $3,009.7 million or 95.8% of our total operating revenues in 2024. VFR traffic makes up the largest
component of our customers and we believe that our VFR customers are the most cost conscious and time/schedule flexible of all of our
travelers. VFR and leisure, the second largest component of our customers, are stronger during the summer, Christmas and New Year season,
followed by Easter and responds well to demand stimulation based on low fares. Cost-conscious business travelers make up the third largest
component of our customers. Although business travel can be cyclical with the economy, this segment tends to travel steadily throughout
the year regardless of the season.

The most significant passenger revenue includes revenues
generated from: (i) fare revenue and (ii)