Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 63

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4
Chunk 63
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 one of the first ever
between ULCCs, to open additional ultra-low fare travel options between Mexico and the United States. In particular, we currently serve
23 destinations in the United States and 44 in Mexico, of which 18 coincide with Frontier destinations in both countries.

We are one of the lowest unit cost publicly traded operators
worldwide, based on CASM. In 2024, our CASM was U. S. $8.03 cents, compared to an average non-stage-length adjusted CASM of U. S. $10.29
cents for the other Latin American publicly traded airlines, including Azul, Copa, and LATAM. We also have lower costs than our U. S.-based
publicly traded target market competitors, including Alaska, Frontier, Spirit, American, Delta, JetBlue, Southwest, Allegiant and United,
which had an average non-stage-length adjusted CASM of U. S. $14.61 cents in 2024. With our ULCC business model, we have grown significantly
while maintaining a low CASM over the last several years. We have achieved this through our efficient and uniform fleet, high asset utilization,
our emphasis on direct sales and distribution and our variable, performance-based compensation structure. We have a relentless focus on
low costs as part of our organizational culture, and we believe that we can further control our lower CASM by deploying additional Airbus
A320neo family aircraft and leveraging our existing infrastructure to drive economies of scale. We believe that our unit cost advantage
will allow us to continue stimulating market demand by lowering base fares and to increase non-passenger revenue opportunities.

Our ULCC business model and low CASM allow us to compete principally
through offering low base fares to stimulate demand. We use our yield management system to set our fares in an effort to achieve appropriate
yields and load factors on each route we operate. We use promotional fares to stimulate demand and price our base fares to compete with
long-distance bus fares in Mexico.

During 2024, our average base fare was U. S.
$52.62, and we regularly offered promotional fares as low as U. S. $1.80 or U. S. $0.98 for V-Club members, excluding airport fees. We have
unbundled certain components of our air travel service as part of a strategy to enable our passengers to only pay for the products and
services they want to use. This unbundling strategy has allowed us to significantly