Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 39

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 39
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 by other countries and states, including in Central and South America. In addition, many of our commercial partners,
including credit card companies, have imposed data security standards that we must meet. While we continue our efforts to meet these standards,
new and revised standards may be imposed that may be difficult for us to meet and could increase our costs, and we may be liable to such
commercial partners should any payment card information be accessed and misused as a result of a lack of sufficient security measures.

Additionally, in the event of a security incident, we could
be held liable to our commercial partners for losses or penalties resulting from alleged deficiencies in our security measures.

Beyond regulatory compliance, our business depends on consumer
trust in the security of our systems, particularly our online platforms through which we sell most of our tickets, and our ability to
properly manage and protect Personal Information. Any failure to comply with applicable privacy laws or obligations - whether due
to regulatory changes, enforcement actions, or cybersecurity incidents - could lead to significant financial, operational, and reputational
harm. Our business, results of operations and financial condition could be adversely affected if we are unable to comply with existing
privacy obligations or legislation or regulations are expanded to require changes in our business practices or otherwise hinder
our ability to grow our business. Furthermore, lawsuits may be initiated against us and our reputation may be negatively affected if we
fail to comply with applicable law and privacy obligations.

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We depend on our non-passenger revenue to remain profitable, and we may
not be able to maintain or increase our non-passenger revenue base.

Our business strategy significantly relies upon our portfolio
of non-passenger revenues, including ancillary products and services and cargo revenue, on which we depend to remain profitable due to
our ULCC strategy of low base fares. There can be no assurance that passengers will pay for additional ancillary products and services
or that passengers will continue to choose to pay for the ancillary products and services we currently offer. Failure to maintain our
non-passenger revenues would have a material adverse effect on our results of operations and financial condition. Furthermore, if we are
unable to maintain and grow our non-passenger revenues, we may not be able to execute our strategy to continue to lower base fares in
order to stimulate demand for air travel. In addition, our strategy to increase and develop non-passenger revenue by charging for additional
ancillary services may be adversely perceived by our customers and negatively affect our business.