Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 177

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 177
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 is controlled and therefore consolidated
by Controladora, shares purchased in the market and held within the Administrative Trust are presented for accounting purposes as treasury
stock in the consolidated statement of changes in equity.

In November 2022, 2023 and 2024 allocations to this plan were
approved by our board of directors. The total cost of the allocations approved were U. S. $5.7 million (U. S. $3.7 million net of withheld
taxes), U. S. $ 5.7 million (U. S. $3.7 million net of withheld taxes), and U. S. $5.8 million (U. S. $3.8 million net of withheld taxes).
Under the terms of the incentive plan, certain of our key employees were granted a special bonus that was transferred to the administrative
trust for the acquisition of our Series A shares.

During 2022, 2023 and 2024 we recognized U. S. $5.1 million,
U. S. $6.0 million and U. S. $6.3 million, respectively, as compensation expense associated with the long-term incentive plan in our consolidated
statements of operations.

During the year ended December 31, 2022, 2023 and 2024, some
key employees left the Company; therefore, these employees did not fulfill the vesting conditions. In accordance with the plan, Servicios
Corporativos, the Company and Volaris Opco are entitled to receive the proceeds of the sale of such shares. As of December 31, 2022, 2023
and 2024, 103,712 shares, 330,453 shares, 0 shares, respectively, were forfeited. As of December 31, 2022, 2023 and 2024, 6,579,214 shares,
9,163,300 shares, and 10,492,330 shares, respectively, were held in trust under this plan as all shares granted remained unvested. Such
shares were considered as treasury shares and considered outstanding for diluted earnings per share purposes because the holders are entitled
to dividends if and when distributed.

  Board Practices  

Board Practices

The members of our board of directors are elected annually
at our ordinary general meeting of shareholders. All board members hold their positions for one year and may be reelected.

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  Table of Contents  

Authority of the Board of Directors

For