Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 7

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 7
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 replacement for NAFTA. Implementation of immigration
and trade policies can adversely affect United States - Mexico travel behavior, especially in the VFR and leisure markets and
could have a negative impact on our results of operations.

There is currently significant uncertainty about the future political and economic
relationship between the United States and Mexico and its impact on the overall state of the economy. This uncertainty is driven bychanges
in the U. S. presidential administration with respect to immigration policies, trade policies, treaties, tariffs, taxes, and other limitations
on cross-border operations, which has impacted the demand for U. S. - Mexican transborder travel. Adding to these uncertainties were
recently-announced and rapidly changing U. S. tariff policies, along with international retaliatory tariffs and global trade policies,
which continue to cause overall economic uncertainty. Changes in tariffs, trade barriers, price and exchange controls and other regulatory
requirements could have an adverse effect on our business, prospects, financial condition and operating results, the extent of which
cannot be predicted with certainty at this time. Additionally, other potential challenging macroeconomic conditions, and the resulting
impact on the economy and consumer spending, could negatively impact our business and operations. See “ - Economic, political,
or social developments in the United States and the Central and South American countries in which we operate may have an adverse effect
on our business, results of operations, financial condition and prospects.” Mexican antitrust provisions may affect the fares we
are permitted to charge to customers.

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The Mexican Aviation Law (Ley de Aviación Civil)
provides that in the event that the SICT determines that there is no effective competition among permit and concession holders (required
to operate airlines in Mexico), the SICT may request the opinion of the Mexican Antitrust Commission (Comisión Federal de Competencia
Económica) and then issue regulations governing the fares that may be charged for air transportation services by airlines operating
in Mexico. Such regulations would be in effect only while the conditions that resulted in their establishment remain. The imposition of
fare regulations by the SICT could materially affect our business, results of operations and financial condition.

Violent crime in Mexico has adversely impacted, and may continue
to adversely impact, the Mexican economy and may have a negative effect on our business, results of operations or financial condition.

Mexico has experienced high levels of violent crime over the
past years relating to illegal drug trafficking, particularly in Mexico’s northern states near the U. S