Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 319

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 319
---
 entitled them to a cash payment after a service period. The amount of the cash payment is determined based
on the increase in the share price of the Company between the grant date and the time of exercise. The liability for the SARs is measured
initially and at the end of each reporting period until settled at the fair value of the SARs, taking into account the terms and conditions
on which the SARs were granted. The compensation cost is recognized in the consolidated statements of operations under the caption of
salaries and benefits, over the required service period (Note 18).

c) Board of Directors Incentive Plan (“ BoDIP”)

Certain members of the Board of Directors of the Company receive
additional benefits through a share-based plan, which has been classified as an equity-settled share-based payment and therefore accounted
for under IFRS 2 “ Share based payment.”

In April 2018, the Board of Directors of the Company authorized
a Board of Directors Incentive Plan “ BoDIP,” for the benefit of certain board members. The BoDIP grants options to acquire
shares of the Company or CPOs during a five-yearperiod, which was determined on the grant date. Under this plan, no service or performance
conditions are required to the board members for exercise of the option to acquire shares, and therefore, they have the right to request
the delivery of those shares at the time they pay for them.

In April 2023, the Company’s Annual General Shareholders’
Meeting modified the terms of the BoDIP so that, starting in 2023, certain members of the Board of Directors receive additional benefits
through a stock-based plan.

vi) Employee profit-sharing

The Mexican Income Tax Law (“ MITL”) establishes
that the base for computing current-year employee profit-sharing shall be the taxpayer’s taxable income of the year for income tax
purposes, including certain adjustments established in the Income Tax Law, at the rate of 10%. The Mexican Federal Labor Law (“ MFLL”)
establishes a limit for employee profit-sharing payment, up to three months of the employee’s current salary or the average employee
profit-sharing received by the employee in the previous three years.

For the years ended December 31, 2024, 2023 and 2022, the
employee profit-sharing recognized as operating expense in the consolidated statements of operations was US$18,623, US$1,481and US$136,
respectively. Subs