Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 6

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 6
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 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. S. $3.6 million, U. S. $(34.1) million, and U. S. $13.7 million,
respectively.

The value of the U. S. dollar has been subject to significant
fluctuations with respect to the peso in the past and may be subject to significant fluctuations in the future. As of December 31, 2022,
2023, and 2024 the U. S. dollar depreciated 5.9%, 12.7%, and appreciated 20.0%, respectively, against the peso in nominal terms.

Devaluation or depreciation of the U. S. dollar against the peso may adversely
affect the U. S. dollar value of an investment in the CPOs, as well as the U. S. dollar value of any dividend or other distributions that
we may make.

Exchange rate fluctuations would also affect the equivalent
value of any dividends and other distributions we may elect to make in the future and may affect the timely payment of any cash dividends
and other distributions to holders of CPOs that we may elect to pay in the future.

Developments in other countries could adversely affect the Mexican economy,
the market value of our securities, our financial condition and results of operations.

The market value of securities of Mexican companies is affected
by economic and market conditions in developed and other emerging market countries. Although economic conditions in those countries may
differ significantly from economic conditions in Mexico, investors’ reactions to developments in any of these other countries, may
have an adverse effect on the market value of securities of Mexican issuers. For example, prices of both Mexican debt and equity securities
have sometimes suffered substantial drops as a result of developments in other countries.

In addition, the direct correlation between economic conditions in Mexico
and the United States has strengthened because of the North American Free Trade Agreement (“ NAFTA”) and increased
economic activity between the two countries (including increased remittances of U. S. dollars from Mexican workers in the United
States to their families in Mexico). On November 30, 2018, Mexico, the United States and Canada signed the USMCA (United
States-Mexico-Canada Agreement), which entered into force on July 1, 2020, as a