Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 127

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 127
---
 in depreciation and amortization rather than total maintenance costs as described
in “ Other Accounting Polices and Estimates.” In 2022, 2023, and 2024 total maintenance expenses amounted to U. S. $97.8 million,
U. S. $98.4 million, and U. S. $100.4 million, respectively. As the fleet ages, we expect that maintenance costs will increase in absolute
terms. The amount of total maintenance costs and related amortization of heavy maintenance expense is subject to many variables such
as future utilization rates, average stage length, the size and makeup of the fleet in future periods and the level of unscheduled maintenance
events and their actual costs. Accordingly, we cannot reliably quantify future maintenance expenses for any significant period. However,
we estimate that based on our scheduled maintenance events, current major maintenance expense and maintenance-related amortization expense
will be approximately U. S. $173.5 million and U. S. $185.3 million, respectively, in 2025.

Maintenance Deposits Paid to Lessors. Certain
of our aircraft and engine lease agreements require us to pay maintenance deposits to lessors as a guarantee for the performance of major
maintenance activities. These deposits are recorded as a guarantee deposit in our consolidated statements of financial position. See Item
5: “ Other Accounting Policies and Estimates.”

  84  

  Table of Contents  

Ramp-up
Period for New Routes. We opened 25 new routes, 58 new routes and 18 new routes, during 2022, 2023, and 2024, respectively.
As we continue to grow, we would expect to continue to experience a lag between when new routes are put into service and when they reach
their full profit potential. See Item 3: “ Key Information - Risk Factors - Airline consolidations and reorganizations could
adversely affect the industry.”

Critical Accounting Estimates

The following discussion and analysis of our consolidated
financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance
with IFRS. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the
reported amount of assets and liabilities, revenues and expenses, and related disclosure of supplemental assets and liabilities at the
date of our consolidated financial statements. Note 1 to our consolidated financial statements included herein provides a detailed discussion
of our significant accounting policies.

Critical accounting policies are defined as those policies
that reflect significant judgments or estimates about