Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 341

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 341
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2023 and 2022, there was no ineffective portion resulting from these hedging instruments.

In August 2024, the Company entered into T-Locks agreements
(Treasury Rate Locks) to mitigate the risk associated with floating rates indexed to lease agreements. The floating rate referenced to
US5Y (United States 5Y Treasury Note) was locked for a notional of US$24,900maturing in August 2024.

As of December 31, 2024, the Company recognized a total of
US$117in other comprehensive loss.

As of December 31, 2024, the Company does not have any outstanding
hedging contracts balances in the form of T-Locks.

Debt Sensitivity Analysis

The following sensitivity analysis considers the position
exposed to variable interest rates.

The Interbank Equilibrium Interest Rate of the Banco de Mexico
(TIIE) 28 days decreased125basis points from 2023 to 2024, going from11.50% to10.25%, and increased72basis points from 2022 to 2023,
going from10.78% to11.50%, respectively. The Secured Overnight Financing Rate (SOFR) three months decreased102basis points from 2023
to 2024, going from5.33% to4.31%, and increased73basis points from 2023 to 2024, going from4.60% to5.33%, respectively, and SOFR
one month decreased102basis points from 2023 to 2024, going from5.35% to4.33%, and increased99basis points from 2022 to 2023, going
from4.36% to5.35%, respectively.

In addition to the reference rate changes, if the interest
rate had changed on an annual average in the magnitude shown, the impact on the interest expense in the consolidated statements of operations
would have been as shown on the next page.

  Schedule of debt sensitivity analysis                                                                                                                                                                                                        
                                                                                                              Year ended December 31, 2024                                               Year ended December 31, 2023                          
                                                                                                              + 100 BP                                        - 100 BP                   + 100 BP                                              
                                                                                                              (In thousands of U. S. dollars)                                                                                                  
  Asset-backed trust notes (“ CEBUR”) (1)                                                                     US$                                  1,385      US$           ( 1,385      US$                               1,435      (