Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 8

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 8
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. border, and several other
states. This violence has had an adverse impact on the economic activity in Mexico. In addition, violent crime may further affect travel
within Mexico and between Mexico and other countries, including the United States, affect the airports or cities in which we operate,
including airports or cities in the north of Mexico in which we have significant operations, and increase our insurance and security costs.
We cannot assure you that the levels of violent crime in Mexico, the United States and other countries in which we operate will not increase
or decrease and will have no further adverse effects on the country’s economy and on our business, results of operations or financial
condition.

Risks related to the airline industry

We operate in an extremely competitive industry.

We face significant competition with respect to routes, fares,
services and slots in airports. Within the airline industry, we compete with legacy carriers, regional airlines and low-cost airlines
on many of our routes. The intensity of the competition we face varies from route to route and depends on a number of factors, including
the strength of competing airlines. Our competitors may have better brand recognition and greater financial and other resources than we
do. In the event our competitors reduce their fares to levels which we are unable to match while sustaining profitable operations or are
more successful in the operation of certain routes (as a result of service or otherwise), we may be required to reduce or withdraw services
on the relevant routes, which may cause us to incur losses or may impact our growth, financial condition or results of operations. See
Item 4: “ Information on the Company - Business Overview - Competition.”

The airline industry is particularly susceptible to price
discounting, because once a flight is scheduled, airlines incur only nominal additional costs to provide service to passengers occupying
otherwise unsold seats. Increased fare or other price competition could adversely affect our results of operations and financial condition.
Moreover, other airlines have begun to unbundle services by charging separate fees for services such as baggage transported, food and
beverages consumed onboard and advance seat selection. This unbundling and potential reduction of costs could enable competitor airlines
to reduce fares on routes that we serve, which may result in an improvement in their ability to attract customers and may affect our results
of operations and financial condition.

In addition, airlines increase or decrease capacity in markets
based on perceived profitability. Decisions by our competitors that increase overall industry capacity, or capacity dedicated to a particular
region, market or route, could have a material adverse impact on our