UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of February 2015
 
Commission File Number: 001-36059

 
 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V.
(Name of Registrant)
 
Av. Antonio Dovalí Jaime No. 70, 13 Floor, Tower B
Colonia Zedec Santa Fe
United Mexican States, D.F. 01210
+(52) 55-5261-6400
(Address of Principal Executive Offices)

 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F £
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
Yes £ No  x
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
Yes £ No x
 
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes £ No x
 
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- __________

 	

 	
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 	Controladora Vuela Compañía de Aviación, S.A.B. de C.V.	
 	 	 	
Date: February 25, 2015	 	 	
 	By: 	/s/ Fernando Suárez	
 	 	Name: Fernando Suárez	
 	 	Title: Chief Financial Officer	
 	 	 	
 	By:	/s/ Jaime Pous	
 	 	Name: Jaime Pous	
 	 	Title: General Counsel	

 	

 	
  
EXHIBIT INDEX
The following exhibit is filed as part of this Form 6-K:
 
Exhibit	 	Description	
 	 	
99.13	 	Press release dated February 25, 2015	

 	

 
Exhibit 99.13
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	 	 	 	 	
CODE: VOLAR	 	QUARTER:	04	YEAR:	2014	
 	STATEMENT OF FINANCIAL POSITION	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	AT DECEMBER 31, 2014 AND DECEMBER 31, 2013	 	 	CONSOLIDATED	
 	(Thousands of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Ending current	 	 	Previous year end	 	
Ref	 	Account / Subaccount	 	Amount	 	 	Amount	 	
10000000	 	Total assets	 	 	9,905,040	 	 	 	8,377,784	 	
11000000	 	Total current assets	 	 	3,688,669	 	 	 	3,999,960	 	
11010000	 	Cash and cash equivalents	 	 	2,264,857	 	 	 	2,450,773	 	
11020000	 	Short-term investments	 	 	0	 	 	 	0	 	
11020010	 	Available-for-sale investments	 	 	0	 	 	 	0	 	
11020020	 	Trading investments	 	 	0	 	 	 	0	 	
11020030	 	Held-to-maturity investments	 	 	0	 	 	 	0	 	
11030000	 	Accounts receivables, net	 	 	174,941	 	 	 	222,230	 	
11030010	 	Accounts receivables	 	 	202,727	 	 	 	252,005	 	
11030020	 	Provisions for doubtful accounts	 	 	-27,786	 	 	 	-29,775	 	
11040000	 	Other receivables, net	 	 	273,619	 	 	 	379,929	 	
11040010	 	Other receivables	 	 	273,619	 	 	 	379,929	 	
11040020	 	Provisions for doubtful accounts	 	 	0	 	 	 	0	 	
11050000	 	Inventories	 	 	139,673	 	 	 	113,835	 	
11051000	 	Biological current assets	 	 	0	 	 	 	0	 	
11060000	 	Other current assets	 	 	835,579	 	 	 	833,193	 	
11060010	 	Prepaid expenses	 	 	227,708	 	 	 	322,971	 	
11060020	 	Financial instruments	 	 	62,679	 	 	 	11,133	 	
11060030	 	Assets available for sale	 	 	0	 	 	 	0	 	
11060050	 	Rights and licenses	 	 	0	 	 	 	0	 	
11060060	 	Other	 	 	545,192	 	 	 	499,089	 	
12000000	 	Total non-current assets	 	 	6,216,371	 	 	 	4,377,824	 	
12010000	 	Accounts receivable, net	 	 	0	 	 	 	0	 	
12020000	 	Investments	 	 	0	 	 	 	0	 	
12020010	 	Investments in associates and joint ventures	 	 	0	 	 	 	0	 	
12020020	 	Held-to-maturity investments	 	 	0	 	 	 	0	 	
12020030	 	Available-for-sale investments	 	 	0	 	 	 	0	 	
12020040	 	Other investments	 	 	0	 	 	 	0	 	
12030000	 	Property, plant and equipment, net	 	 	2,223,312	 	 	 	1,341,323	 	
12030010	 	Land and buildings	 	 	0	 	 	 	0	 	
12030020	 	Machinery and industrial equipment	 	 	0	 	 	 	0	 	
12030030	 	Other equipment	 	 	1,629,982	 	 	 	953,538	 	
12030040	 	Accumulated depreciation and amortization	 	 	-886,919	 	 	 	-569,100	 	
12030050	 	Construction in process	 	 	1,480,249	 	 	 	956,885	 	
12040000	 	Investment property	 	 	0	 	 	 	0	 	
12050000	 	Biological non- current assets	 	 	0	 	 	 	0	 	
12060000	 	Intangible assets, net	 	 	72,566	 	 	 	79,282	 	
12060010	 	Goodwill	 	 	0	 	 	 	0	 	
12060020	 	Trademarks	 	 	0	 	 	 	0	 	
12060030	 	Rights and licenses	 	 	2,070	 	 	 	2,009	 	
12060031	 	Concessions	 	 	0	 	 	 	0	 	
12060040	 	Other intangible assets	 	 	70,496	 	 	 	77,273	 	
12070000	 	Deferred tax assets	 	 	327,785	 	 	 	304,525	 	
12080000	 	Other non-current assets	 	 	3,592,708	 	 	 	2,652,694	 	
12080001	 	Prepaid expenses	 	 	0	 	 	 	0	 	
12080010	 	Financial instruments	 	 	5,454	 	 	 	0	 	
12080020	 	Employee benefits	 	 	0	 	 	 	0	 	
12080021	 	Available for sale assets	 	 	0	 	 	 	0	 	
12080040	 	Deferred charges	 	 	0	 	 	 	0	 	
12080050	 	Other	 	 	3,587,254	 	 	 	2,652,694	 	
20000000	 	Total liabilities	 	 	5,435,260	 	 	 	4,415,414	 	
21000000	 	Total short-term liabilities	 	 	4,768,367	 	 	 	3,871,529	 	
21010000	 	Financial Debt	 	 	818,393	 	 	 	266,121	 	
21020000	 	Stock market loans	 	 	0	 	 	 	0	 	
21030000	 	Other liabilities with cost	 	 	0	 	 	 	0	 	
21040000	 	Suppliers	 	 	505,604	 	 	 	533,555	 	
21050000	 	Taxes payable	 	 	677,094	 	 	 	598,976	 	
21050010	 	Income tax payable	 	 	47,746	 	 	 	44,713	 	
21050020	 	Other taxes payable	 	 	629,348	 	 	 	554,263	 	
21060000	 	Other current liabilities	 	 	2,767,276	 	 	 	2,472,877	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	 	 	 	 	
CODE: VOLAR	 	QUARTER:	04	YEAR:	2014	
 	STATEMENT OF FINANCIAL POSITION	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	AT DECEMBER 31, 2014 AND DECEMBER 31, 2013	 	 	CONSOLIDATED	
 	(Thousands of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Ending current	 	 	Previous year end	 	
Ref	 	Account / Subaccount	 	Amount	 	 	Amount	 	
21060010	 	Interest payable	 	 	4,678	 	 	 	2,347	 	
21060020	 	Financial instruments	 	 	210,650	 	 	 	31,845	 	
21060030	 	Deferred revenue	 	 	1,420,935	 	 	 	1,393,469	 	
21060050	 	Employee benefits	 	 	0	 	 	 	0	 	
21060060	 	Provisions	 	 	8,905	 	 	 	9,498	 	
21060061	 	Current liabilities related to available for sale assets	 	 	0	 	 	 	0	 	
21060080	 	Other	 	 	1,122,108	 	 	 	1,035,718	 	
22000000	 	Total long-term liabilities	 	 	666,893	 	 	 	543,885	 	
22010000	 	Financial debt	 	 	424,799	 	 	 	293,824	 	
22020000	 	Stock market loans	 	 	0	 	 	 	0	 	
22030000	 	Other liabilities with cost	 	 	0	 	 	 	0	 	
22040000	 	Deferred tax liabilities	 	 	26,842	 	 	 	21,530	 	
22050000	 	Other non-current liabilities	 	 	215,252	 	 	 	228,531	 	
22050010	 	Financial instruments	 	 	42,468	 	 	 	74,306	 	
22050020	 	Deferred revenue	 	 	0	 	 	 	0	 	
22050040	 	Employee benefits	 	 	7,737	 	 	 	5,260	 	
22050050	 	Provisions	 	 	20,986	 	 	 	11,381	 	
22050051	 	Long-term liabilities related to available for sale assets	 	 	0	 	 	 	0	 	
22050070	 	Other	 	 	144,061	 	 	 	137,584	 	
30000000	 	Total equity	 	 	4,469,780	 	 	 	3,962,370	 	
30010000	 	Equity attributable to equity holders of parent	 	 	4,469,780	 	 	 	3,962,370	 	
30030000	 	Capital stock	 	 	2,973,559	 	 	 	2,973,559	 	
30040000	 	Shares repurchased	 	 	0	 	 	 	0	 	
30050000	 	Premium on issuance of shares	 	 	1,786,790	 	 	 	1,785,744	 	
30060000	 	Contributions for future capital increases	 	 	1	 	 	 	1	 	
30070000	 	Other contributed capital	 	 	-114,789	 	 	 	-107,730	 	
30080000	 	Retained earnings (accumulated losses)	 	 	-17,533	 	 	 	-622,717	 	
30080010	 	Legal reserve	 	 	38,250	 	 	 	38,250	 	
30080020	 	Other reserves	 	 	0	 	 	 	0	 	
30080030	 	Accumulate losses	 	 	-660,967	 	 	 	-929,645	 	
30080040	 	Net  income for the period	 	 	605,184	 	 	 	268,678	 	
30080050	 	Others	 	 	0	 	 	 	0	 	
30090000	 	Accumulated other comprehensive income (net of tax)	 	 	-158,248	 	 	 	-66,487	 	
30090010	 	Gain on revaluation of properties	 	 	0	 	 	 	0	 	
30090020	 	Actuarial gains (losses) from labor obligations	 	 	-1,482	 	 	 	-375	 	
30090030	 	Foreign currency translation	 	 	0	 	 	 	0	 	
30090040	 	Changes in the valuation of financial assets available for sale	 	 	0	 	 	 	0	 	
30090050	 	Changes in the valuation of derivative financial instruments	 	 	-156,766	 	 	 	-66,112	 	
30090060	 	Changes in fair value of other assets	 	 	0	 	 	 	0	 	
30090070	 	Share of other comprehensive income of associates and joint ventures	 	 	0	 	 	 	0	 	
30090080	 	Other comprehensive income	 	 	0	 	 	 	0	 	
30020000	 	Non-controlling interest	 	 	0	 	 	 	0	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
 	 	QUARTER:	04	YEAR:	2014	
MEXICAN STOCK EXCHANGE	 	 	 	 	 	
CODE: VOLAR	STATEMENT OF FINANCIAL POSITION	 	 	 	 	
 	INFORMATIONAL DATA	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE: VLRS	AT DECEMBER 31, 2014 AND DECEMBER 31, 2013	 	 	 	 	
 	 	 	 	CONSOLIDATED	
 	(Thousands of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Ending current	 	 	Previous  year end	 	
Ref	 	Concepts	 	Amount	 	 	Amount	 	
91000010	 	Short-term foreign currency liabilities	 	 	1,477,902	 	 	 	744,497	 	
91000020	 	Long term foreign currency liabilities	 	 	467,267	 	 	 	368,130	 	
91000030	 	Capital stock	 	 	2,973,559	 	 	 	2,973,559	 	
91000040	 	Restatement of capital stock	 	 	0	 	 	 	0	 	
91000050	 	Plan assets for pensions and seniority premiums	 	 	0	 	 	 	0	 	
91000060	 	Number of executives (*)	 	 	0	 	 	 	0	 	
91000070	 	Number of employees (*)	 	 	2,805	 	 	 	2,692	 	
91000080	 	Number of workers (*)	 	 	0	 	 	 	0	 	
91000090	 	Outstanding shares (*)	 	 	1,011,876,677	 	 	 	1,011,876,677	 	
91000100	 	Repurchased shares (*)	 	 	0	 	 	 	0	 	
91000110	 	Restricted cash (1)	 	 	0	 	 	 	0	 	
91000120	 	Guaranteed debt of associated companies	 	 	0	 	 	 	0	 	
 
(1) This concept must be filled when there are guarantees or restrictions that affect cash and cash equivalents
(*) Data in units

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	STATEMENTS OF COMPREHENSIVE INCOME	 	 	 	 	
NEW YORK STOCK	 	 	 	CONSOLIDATED	
EXCHANGE CODE: VLRS	 	 	 	 	 	
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013	
 	(Thousand of Mexican Pesos)	 	 	 	 	

 	 	 	 	Current Year	 	 	Previous year	 	
Ref	 	Account / Subaccount	 	Accumulated	 	 	Quarter	 	 	Accumulated	 	 	Quarter	 	
40010000	 	Revenues	 	 	14,036,742	 	 	 	3,958,246	 	 	 	13,002,471	 	 	 	3,183,773	 	
40010010	 	Services	 	 	14,036,742	 	 	 	3,958,246	 	 	 	13,002,471	 	 	 	3,183,773	 	
40010020	 	Sale of goods	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40010030	 	Interests	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40010040	 	Royalties	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40010050	 	Dividends	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40010060	 	Leases	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40010061	 	Constructions	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40010070	 	Other revenue	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40020000	 	Cost of sales	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40021000	 	Gross profit	 	 	14,036,742	 	 	 	3,958,246	 	 	 	13,002,471	 	 	 	3,183,773	 	
40030000	 	General expenses	 	 	13,844,030	 	 	 	3,543,101	 	 	 	12,722,241	 	 	 	3,408,107	 	
40040000	 	Income (loss) before other income (expenses), net	 	 	192,712	 	 	 	415,145	 	 	 	280,230	 	 	 	-224,334	 	
40050000	 	Other income, net	 	 	11,391	 	 	 	11,178	 	 	 	37,147	 	 	 	27,540	 	
40060000	 	Operating income (loss)	 	 	204,103	 	 	 	426,323	 	 	 	317,377	 	 	 	-196,794	 	
40070000	 	Finance income	 	 	472,136	 	 	 	342,814	 	 	 	91,202	 	 	 	26,002	 	
40070010	 	Interest income	 	 	23,242	 	 	 	6,472	 	 	 	23,044	 	 	 	5,276	 	
40070020	 	Gain on foreign exchange, net	 	 	448,672	 	 	 	336,334	 	 	 	66,428	 	 	 	20,714	 	
40070030	 	Gain on derivatives, net	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40070040	 	Gain on change in fair value of financial instruments	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40070050	 	Other finance income	 	 	222	 	 	 	8	 	 	 	1,730	 	 	 	12	 	
40080000	 	Finance costs	 	 	32,335	 	 	 	9,063	 	 	 	125,737	 	 	 	5,345	 	
40080010	 	Interest expense	 	 	0	 	 	 	0	 	 	 	38,796	 	 	 	0	 	
40080020	 	Loss on foreign exchange, net	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40080030	 	Loss on derivatives, net	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40080050	 	Loss on change in fair value of financial instruments	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40080060	 	Other finance costs	 	 	32,335	 	 	 	9,063	 	 	 	86,941	 	 	 	5,345	 	
40090000	 	Finance income (loss), net	 	 	439,801	 	 	 	333,751	 	 	 	-34,535	 	 	 	20,657	 	
40100000	 	Share of income (loss) of  associates and joint ventures	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40110000	 	Income (loss) before income tax	 	 	643,904	 	 	 	760,074	 	 	 	282,842	 	 	 	-176,137	 	
40120000	 	Income tax benefit (expense)	 	 	38,720	 	 	 	57,197	 	 	 	17,550	 	 	 	-79,022	 	
40120010	 	Current tax	 	 	17,345	 	 	 	15,085	 	 	 	8,710	 	 	 	-1,239	 	
40120020	 	Deferred tax	 	 	21,375	 	 	 	42,112	 	 	 	8,840	 	 	 	-77,783	 	
40130000	 	Income (loss) from continuing operations	 	 	605,184	 	 	 	702,877	 	 	 	265,292	 	 	 	-97,115	 	
40140000	 	(Loss) income from discontinued operations	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40150000	 	Net income (loss)	 	 	605,184	 	 	 	702,877	 	 	 	265,292	 	 	 	-97,115	 	
40160000	 	Loss attributable to non-controlling interests	 	 	0	 	 	 	0	 	 	 	-3,386	 	 	 	0	 	
40170000	 	Income (loss) attributable to owners of parent	 	 	605,184	 	 	 	702,877	 	 	 	268,678	 	 	 	-97,115	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40180000	 	Earnings (loss) income per share basic	 	 	0.60	 	 	 	0.69	 	 	 	0.31	 	 	 	-0.10	 	
40190000	 	Earnings (loss) income per share diluted	 	 	0.60	 	 	 	0.69	 	 	 	0.31	 	 	 	-0.10	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	STATEMENTS OF COMPREHENSIVE INCOME	 	 	 	 	
NEW YORK STOCK	OTHER COMPREHENSIVE INCOME	 	 	CONSOLIDATED	
EXCHANGE CODE: VLRS	(NET OF INCOMETAX)	 	 	 	 	
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013	
 	(Thousand of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	Account / Subaccount	 	Accumulated	 	 	Quarter	 	 	Accumulated	 	 	Quarter	 	
40200000	 	Net income (loss)	 	 	605,184	 	 	 	702,877	 	 	 	265,292	 	 	 	-97,115	 	
 	 	Disclosures not be reclassified on income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40210000	 	Property revaluation gains	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40220000	 	Actuarial (loss) earnings from labor obligations	 	 	-1,107	 	 	 	-1,107	 	 	 	7,950	 	 	 	7,950	 	
40220100	 	Share of income on revaluation on properties of associates and joint ventures	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	Disclosures may be reclassified subsequently to income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40230000	 	Foreign currency translation	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40240000	 	Changes in the valuation of financial assets held-for-sale	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40250000	 	Changes in the valuation of derivative financial instruments	 	 	-90,654	 	 	 	-72,975	 	 	 	33,473	 	 	 	12,802	 	
40260000	 	Changes in fair value of other assets	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40270000	 	Share of other comprehensive income of associates and joint ventures	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40280000	 	Other comprehensive income	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
40290000	 	Total other comprehensive income	 	 	-91,761	 	 	 	-74,082	 	 	 	41,423	 	 	 	20,752	 	
 	 	Total comprehensive income (loss)	 	 	513,423	 	 	 	628,795	 	 	 	306,715	 	 	 	-76,363	 	
40320000	 	Comprehensive income (loss), attributable to non-controlling interests	 	 	0	 	 	 	0	 	 	 	-3,386	 	 	 	-29	 	
40310000	 	Comprehensive income (loss), attributable to equity holders of parent	 	 	513,423	 	 	 	628,795	 	 	 	310,101	 	 	 	-76,334	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	 	 	 	 	
CODE: VOLAR	 	 	 	 	 	
 	 	QUARTER:	04	YEAR:	2014	
NEW YORK STOCK	STATEMENTS OF COMPREHENSIVE INCOME	 	 	 	 	
EXCHANGE CODE: VLRS	INFORMATIONAL DATA	 	 	 	 	
 	 	 	 	CONSOLIDATED	
FOR THE TWELVE AND THREE MONTHS ENDED DECEMBER 31, 2014 AND 2013	
 	(Thousand of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	Account / Subaccount	 	Accumulated	 	 	Quarter	 	 	Accumulated	 	 	Quarter	 	
92000010	 	Operating depreciation and amortization	 	 	342,515	 	 	 	137,608	 	 	 	301,531	 	 	 	85,627	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	STATEMENTS OF COMPREHENSIVE INCOME	 	 	 	 	
 	INFORMATIONAL DATA (12 MONTHS)	 	 	 	 	
NEW YORK STOCK	 	 	 	CONSOLIDATED	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	(Thousands of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Year	 	
Ref	 	Account / Subaccount	 	Current	 	 	Previous	 	
92000030	 	Revenues net (**)	 	 	14,036,742	 	 	 	13,002,471	 	
92000040	 	Operating income (**)	 	 	204,103	 	 	 	317,377	 	
92000060	 	Net income (**)	 	 	605,184	 	 	 	265,292	 	
92000050	 	Income, attributable to equity holders of parent(**)	 	 	605,184	 	 	 	268,678	 	
92000070	 	Operating depreciation and amortization (**)	 	 	342,515	 	 	 	301,531	 	
 
(**) Information last 12 months 

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK EXCHANGE	S.A.B. DE C.V.	 	 	 	 	
CODE: VOLAR	 	QUARTER:	04	YEAR:	2014	
 	STATEMENT OF CHANGES IN EQUITY	 	 	 	 	
 	(THOUSAND OF MEXICAN PESOS)	 	 	 	 	
NEW YORK EXCHANGE	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	CONSOLIDATED	
 
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Retained earnings (accumulated	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	losses)	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Unappropriated	 	 	 	 	 	Equity	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	earnings	 	 	Accumulated other	 	 	attributable to	 	 	 	 	 	 	 	
Concepts	 	 	 	 	Shares	 	 	Additional	 	 	Contributions for	 	 	Other capital	 	 	 	 	 	(Accumulated	 	 	comprehensive	 	 	holders of	 	 	Non- controlling	 	 	 	 	
Increases	 	Capital stock	 	 	repurchased	 	 	paid-incapital	 	 	future capital	 	 	contributed	 	 	Reserves	 	 	Losses)	 	 	income (loss)	 	 	parent	 	 	interests	 	 	Total equity	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at January 1, 2013	 	 	2,376,098	 	 	 	0	 	 	 	-190,850	 	 	 	1	 	 	 	-133,723	 	 	 	38,250	 	 	 	-929,645	 	 	 	-107,910	 	 	 	1,052,221	 	 	 	22,446	 	 	 	1,074,667	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Retrospective adjustments	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Application of comprehensive income to retained earnings	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reserves	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dividends	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital increase (decrease)	 	 	597,461	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	597,461	 	 	 	0	 	 	 	597,461	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Repurchase of shares	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Decrease) increase in Additional paid-in capital	 	 	0	 	 	 	0	 	 	 	2,044,313	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	2,044,313	 	 	 	0	 	 	 	2,044,313	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Decrease) increase in non-controlling interests	 	 	0	 	 	 	0	 	 	 	-69,787	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	-69,787	 	 	 	-19,060	 	 	 	-88,847	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other changes	 	 	0	 	 	 	0	 	 	 	2,068	 	 	 	0	 	 	 	25,993	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	28,061	 	 	 	0	 	 	 	28,061	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	268,678	 	 	 	41,423	 	 	 	310,101	 	 	 	-3,386	 	 	 	306,715	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2013	 	 	2,973,559	 	 	 	0	 	 	 	1,785,744	 	 	 	1	 	 	 	-107,730	 	 	 	38,250	 	 	 	-660,967	 	 	 	-66,487	 	 	 	3,962,370	 	 	 	0	 	 	 	3,962,370	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at January 1, 2014	 	 	2,973,559	 	 	 	0	 	 	 	1,785,744	 	 	 	1	 	 	 	-107,730	 	 	 	38,250	 	 	 	-660,967	 	 	 	-66,487	 	 	 	3,962,370	 	 	 	0	 	 	 	3,962,370	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Retrospective adjustments	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Application of comprehensive income to retained earnings	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reserves	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dividends	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital increase (decrease)	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Repurchase of shares	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Decrease) increase in Additional paid-in capital Of shares	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Decrease) increase in non-controlling interests	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other changes	 	 	0	 	 	 	0	 	 	 	1,046	 	 	 	0	 	 	 	-7,059	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	-6,013	 	 	 	0	 	 	 	-6,013	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive (loss) income	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	605,184	 	 	 	-91,761	 	 	 	513,423	 	 	 	0	 	 	 	513,423	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance at December 31, 2014	 	 	2,973,559	 	 	 	0	 	 	 	1,786,790	 	 	 	1	 	 	 	-114,789	 	 	 	38,250	 	 	 	-55,783	 	 	 	-158,248	 	 	 	4,469,780	 	 	 	0	 	 	 	4,469,780	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
 	 	QUARTER:	04	YEAR:	2014	
MEXICAN STOCK EXCHANGE	 	 	 	 	 	
CODE: VOLAR	STATEMENT OF CASH FLOWS	 	 	 	 	
 	 	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013	
 	 	 	 	CONSOLIDATED	
 	(Thousand of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	Account/Subaccount	 	Amount	 	 	Amount	 	
 OPERATING ACTIVITIES	
50010000	 	 Income before income tax	 	 	643,904	 	 	 	282,842	 	
50020000	 	+(-) Items not requiring cash	 	 	-27,460	 	 	 	-33,266	 	
50020010	 	+ Estimate for the period	 	 	0	 	 	 	0	 	
50020020	 	+ Provision for the period	 	 	0	 	 	 	0	 	
50020030	 	+(-) Other unrealized items	 	 	-27,460	 	 	 	-33,266	 	
50030000	 	+(-) Items related to investing activities	 	 	10,178	 	 	 	149,911	 	
50030010	 	Depreciation and amortization for the period	 	 	342,515	 	 	 	301,531	 	
50030020	 	(-)+ Gain or loss on sale of property, plant and equipment	 	 	-13,908	 	 	 	-94,968	 	
50030030	 	+(-) Loss (reversal) impairment	 	 	0	 	 	 	0	 	
50030040	 	(-)+ Equity in results of associates and joint ventures	 	 	0	 	 	 	0	 	
50030050	 	(-) Dividends received	 	 	0	 	 	 	0	 	
50030060	 	(-) Interest received	 	 	-23,464	 	 	 	-24,774	 	
50030070	 	(-) Foreign exchange fluctuation	 	 	-294,965	 	 	 	-56,652	 	
50030080	 	(-)+ Other inflows (outflows) of cash	 	 	0	 	 	 	24,774	 	
50040000	 	+(-) Items related to financing activities	 	 	157,673	 	 	 	155,812	 	
50040010	 	(+) Accrued interest	 	 	32,335	 	 	 	125,737	 	
50040020	 	(+) Foreign exchange fluctuation	 	 	0	 	 	 	0	 	
50040030	 	(+) Financial Instruments	 	 	125,338	 	 	 	30,075	 	
50040040	 	(-)+ Other inflows (outflows) of cash	 	 	0	 	 	 	0	 	
50050000	 	Cash flows before income tax	 	 	784,295	 	 	 	555,299	 	
50060000	 	Cash flows from used in operating activities	 	 	-450,512	 	 	 	-516,542	 	
50060010	 	+(-) Decrease (increase) in trade accounts receivable	 	 	37,325	 	 	 	-39,343	 	
50060020	 	+(-) Decrease (increase) in inventories	 	 	-25,838	 	 	 	-16,685	 	
50060030	 	+(-) Decrease (increase) in other accounts receivable	 	 	-512,977	 	 	 	-881,799	 	
50060040	 	+(-) Increase (decrease) in trade accounts payable	 	 	-16,717	 	 	 	13,210	 	
50060050	 	+(-) Increase (decrease) in other liabilities	 	 	78,833	 	 	 	422,944	 	
50060060	 	+(-) Income taxes paid or returned	 	 	-11,138	 	 	 	-14,869	 	
50070000	 	Net cash flows from provided by operating activities	 	 	333,783	 	 	 	38,757	 	
Investing activities	 	 	 	 	 	 		
50080000	 	Net cash flows from used in investing activities	 	 	-1,184,968	 	 	 	-311,926	 	
50080010	 	(-) Permanent investments	 	 	0	 	 	 	0	 	
50080020	 	+ Disposition of permanent investments	 	 	0	 	 	 	0	 	
50080030	 	(-) Investment in property, plant and equipment	 	 	-1,574,137	 	 	 	-1,119,442	 	
50080040	 	+ Sale of property, plant and equipment	 	 	417,626	 	 	 	849,074	 	
50080050	 	(-) Temporary investments	 	 	0	 	 	 	0	 	
50080060	 	+ Disposition of temporary investments	 	 	0	 	 	 	0	 	
50080070	 	(-) Investment in intangible assets	 	 	-28,457	 	 	 	-41,558	 	
50080080	 	+ Disposition of intangible assets	 	 	0	 	 	 	0	 	
50080090	 	(-) Acquisitions of ventures	 	 	0	 	 	 	0	 	
50080100	 	+ Dispositions of ventures	 	 	0	 	 	 	0	 	
50080110	 	+ Dividend received	 	 	0	 	 	 	0	 	
50080120	 	+ Interest received	 	 	0	 	 	 	0	 	
50080130	 	+(-) Decrease (increase) advances and loans to third parts	 	 	0	 	 	 	0	 	
50080140	 	-(+) Other inflows (outflows) of cash	 	 	0	 	 	 	0	 	
Financing activities	 	 	 	 	 	 	 	 	
50090000	 	Net cash flow from provided by financing activities	 	 	524,704	 	 	 	1,860,504	 	
50090010	 	+ Financial debt	 	 	965,945	 	 	 	444,098	 	
50090020	 	+ Stock market financing	 	 	0	 	 	 	0	 	
50090030	 	+ Other financing	 	 	0	 	 	 	0	 	
50090040	 	(-) Payments of financial debt amortization	 	 	-399,815	 	 	 	-1,018,722	 	
50090050	 	(-) Stock market financing amortization	 	 	0	 	 	 	0	 	
50090060	 	(-) Other financing amortization	 	 	0	 	 	 	0	 	
50090070	 	+(-) Increase (decrease) in capital stock	 	 	0	 	 	 	508,614	 	
50090080	 	(-) Dividends paid	 	 	0	 	 	 	0	 	
50090090	 	+ Premium on issuance of shares	 	 	0	 	 	 	2,069,547	 	
50090100	 	+ Contributions for future capital increases	 	 	0	 	 	 	0	 	
50090110	 	(-) Interest expense	 	 	-23,151	 	 	 	-65,468	 	
50090120	 	(-) Repurchase of shares	 	 	0	 	 	 	0	 	
50090130	 	(-)+ Other inflows (outflows) of cash	 	 	-18,275	 	 	 	-77,565	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
 	 	QUARTER:	04	YEAR:	2014	
MEXICAN STOCK EXCHANGE	 	 	 	 	 	
CODE: VOLAR	STATEMENT OF CASH FLOWS	 	 	 	 	
 	 	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013	
 	 	 	 	CONSOLIDATED	
 	(Thousand of Mexican Pesos)	 	 	 	 	
 
 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	Account/Subaccount	 	Amount	 	 	Amount	 	
50100000	 	Net (decrease) increase in cash and cash equivalents	 	 	-326,481	 	 	 	1,587,335	 	
50110000	 	Net foreign exchange differences on the cash balance	 	 	140,565	 	 	 	41,362	 	
50120000	 	Cash and cash equivalents at beginning of period	 	 	2,450,773	 	 	 	822,076	 	
50130000	 	Cash and cash equivalents at end of period	 	 	2,264,857	 	 	 	2,450,773	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK EXCHANGE	S.A.B. DE C.V.	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	FINANCIAL STATEMENT NOTES	 	 	 	 	
NEW YORK STOCK	 	 	 	PAGE	1/ 8	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	 	 	 	CONSOLIDATED	

CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN, S.A.B. DE C.V. AND SUBSIDIARIES
(d.b.a. VOLARIS)
 
Notes to the Unaudited Interim Condensed Consolidated Financial Statements
 
For the years ended December 31, 2014 and 2013
 
(In thousands of Mexican pesos and thousands of U.S. dollars,
except when indicated otherwise)

1. Corporate information
 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Controladora”) was incorporated in Mexico in accordance with Mexican corporate laws on October 27, 2005.
 
Controladora and its subsidiaries (The “Company”) are domiciled in Mexico, City at Av. Antonio Dovali Jaime No. 70, 13th Floor, Tower B, Colonia Zedec Santa Fe, México D.F. 
 
The Company, through its subsidiary, Concesionaria Vuela Compañía de Aviación, S.A.P.I. de C.V. (“Concesionaria”), has a concession to provide air transportation services for passengers, cargo and mail throughout Mexico and abroad. The Company is listed on the Mexican Stock Exchange (“BMV”) and on the New York Stock Exchange (“NYSE”).
  
2. Basis of preparation
 
The unaudited interim condensed consolidated financial statements for the three months ended December 31, 2014 have been prepared in accordance with International Accounting Standards (“IAS”) 34 Interim Financial Reporting . Certain notes of the most significant events and transactions are incorporated into these financial statements to explain the changes in the financial position of the Company from the last annual consolidated financial statements for the year ended December 31, 2013.
 
The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the Company’s consolidated financial statements as of December 31, 2013.
 
The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2013.
 
Basis of measurement and presentation
 
The accompanying unaudited interim condensed consolidated financial statements have been prepared under the historical cost convention, except for derivative financial instruments that are measured at fair value. The carrying value of recognized financial assets and liabilities that are designated and accounted for as cash flow hedges are adjusted to record changes in fair values attributable to the risks that are being hedged.

 	

 	
 
Non-controlling interests represent the portion of profits or losses and net assets representing ownership interests in subsidiaries not held by the Company. Non-controlling interests are presented separately in the consolidated statement of comprehensive income and in equity in the consolidated statement of financial position separately from the Company’s own equity.
 
Acquisitions of non-controlling interest are recognized as equity transactions (transactions with owners in their capacity as owners). The carrying amounts of the controlling and non controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid are recognized directly in equity and attributed to the owners of the parent.
 
The preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and notes. Actual results could differ from those estimates
 
The amounts in the accompanying consolidated financial statements have been rounded off to thousands of Mexican pesos, except when otherwise were indicated. The total amounts and percentages may not accurately reflect the absolute amounts in this document due to rounding off.

3. Significant entities of the Group
 
Significant subsidiaries
 
There were no changes in the significant subsidiaries of the Group from those disclosed at December 31, 2013.
 
4. Significant accounting judgments, estimates and assumptions
 
The preparation of these financial statements requires management to make estimates, assumptions and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of the Company’s consolidated financial statements.
 
Certain of the Company’s accounting policies reflect significant judgments, assumptions or estimates about matters that are both inherently uncertain and material to the Company financial position or results of operations.
 
Actual results could differ from these estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.:
 
i) Aircraft maintenance deposits paid to lessors
 
The Company makes certain assumptions at the inception of a lease and at each reporting date to determine the recoverability of maintenance deposits. The key assumptions include the estimated time between the maintenance events, the date the aircraft is due to be returned to the lessor and the number of flight hours the aircraft is estimated to be flown before it is returned to the lessor.

 	

 	
 
ii) Management incentive plan
 
	-	Transactions liquidated through equity instruments	
 
The Company measures the cost of its equity-settled transactions at fair value at the date the equity benefits are conditionally granted to employees.
 
The cost of equity-settled transactions is recognized, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled. For grants that vest on meeting performance conditions, compensation cost is recognized when it becomes probable that the performance condition will be met. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest.
 
The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model, including the expected life of the share option, volatility and dividend yield, and making assumptions about them.

	-	Transactions with stock based payments that are liquidated in cash (appreciation rights on the value of the stock	

The cost of the plans involving appreciation rights on the value of the shares are initially measured at their fair value at the date of concession. This fair value is recognized in consolidated statement of operation with its corresponding liability, starting at the time when it is likely that the stipulated condition of performance in the plan is met and until all conditions are realized. That liability is revalued at every report date, including the date of liquidation, and changes in fair value are recognized in the item of salaries and benefits in the consolidated statement of operation.
  
iii) Deferred taxes
 
Deferred tax assets are recognized for all available tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Management’s judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning opportunities to advance taxable profit before expiration of available tax losses.
 
iv) Fair value of financial instruments
 
Where the fair value of financial assets and financial liabilities recorded in the consolidated statements of financial position cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and expected volatility.

 	

 	
 
v) Impairment of long-lived assets
 
The Company assesses whether there are any indicators of impairment for long-lived assets annually and at other times when such indicators exist. Impairment exists when the carrying amount of a long-lived asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less cost to sell and its value-in-use. The value-in-use calculation is based on a discounted cash flow model, using the Company’s projections of operating results for the near future. The recoverable amount of long-lived assets is sensitive to the uncertainties inherent in the preparation of projections and the discount rate used in the calculation.
 
vi) Allowance for doubtful accounts
 
An allowance for doubtful accounts receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

5. Convenience translation
 
U.S. dollar amounts at December 31, 2014 shown in the unaudited interim condensed consolidated financial statements have been included solely for the convenience of the reader and are translated from Mexican pesos at December 31, 2014, divided by an exchange rate of Ps.14.7180 per U.S. dollar, as reported by the Mexican Central Bank (Banco de México) as the rate for the payment of obligations denominated in foreign currency payable in Mexico in effect on December 31, 2014. Such translation should not be construed as a representation that the peso amounts have been or could be converted into U.S. dollars at this or any other rate. The referred information in U.S. dollars is solely for information purposes and does not represent the amounts are in accordance with IFRS or the equivalent in U.S. dollars in which the transactions were conducted or in which the amounts presented in Mexican pesos can be translated or realized.
 
6. Seasonality of operations
 
The results of operations for any interim period are not necessarily indicative of those for the entire year because the business is subject to seasonal fluctuations. The Company expect demand to be greater during the summer in the northern hemisphere, in December and around Easter, which can fall either in the first or second quarter, compared to the rest of the year. The Company and subsidiaries generally experience their lowest levels of passenger traffic in February, September and October, given their proportion of fixed costs, seasonality can affect their profitability from quarter to quarter. This information is provided to allow for a better understanding of the results, however management has concluded that this does not constitute “highly seasonal” as considered by IAS 34.

7. Cash and cash equivalents
 
Cash and cash equivalents are represented by bank deposits and highly liquid investments with maturities of 90 days or less at the original purchase date.
 
For the purpose of the consolidated statements of cash flows, cash and cash equivalent consist of cash and short-term deposits as defined above. At December 31, 2014 and 2013, the Company's cash and cash equivalents are denominated in pesos and dollars.

 	

 	
 
8. Related parties
 
An analysis of balances due from/to related parties at December 31, 2014 and 2013 is provided below. All companies are considered affiliates, since the Company’s primary shareholders or directors are also direct or indirect shareholders of the related parties:
 
 	 	Type of transactions	 	Country of origin	 	2014	 	 	2013	 	 	Terms	
Due from:	 	 	 	 	 	 	 	 	 	 	 	 	
  ARSA Asesoría Integral Profesional, S.A. de C.V.*	 	Insurance passenger commissions	 	Mexico	 	Ps.	-	 	 	Ps.	885	 	 	30 days	
 	 	 	 	 	 	Ps. 	-	 	 	Ps.	885	 	 	 	
Due to:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Aeromantenimiento, S.A.	 	Aircraft and engine maintenance	 	El Salvador	 	Ps 	559	 	 	Ps.	2,796	 	 	30 days	
  Human Capital International HCI, S.A. de C.V.	 	Professional fees	 	Mexico	 	 	8	 	 	 	240	 	 	30 days	
 	 	 	 	 	 	Ps. 	567	 	 	Ps.	3,036	 	 	 	
*As of February 7th , 2014 ARSA is not longer a related party.
 
For the years ended December 31, 2014 and 2013, the Company did not recognize any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
 
9. Financial instruments
 
Set out below is an overview of financial instruments by classification, other than cash and short-term deposits, held by the Company at December 31, 2014:

 	 	Amortized cost	 	 	Fair value (other comprehensive income)	 	
Financial assets:	 	 	 	 	 	 	 	 	
Accounts receivable, net	 	Ps.	174,941	 	 	 	-	 	
Other accounts receivable	 	 	39,162	 	 	 	-	 	
Derivative financial instruments	 	 	-	 	 	 	62,679	 	
Total current assets	 	Ps.	     214,103	 	 	Ps.	62,679	 	
Derivative financial instruments	 	 	-	 	 	 	5,454	 	
Total non-current assets	 	 	-	 	 	 	5,454	 	
Total	 	Ps.	214,103	 	 	Ps.	68,133	 	

 	

 	

 	 	Amortized cost	 	 	Fair value (other comprehensive income)	 	
Financial liabilities:	 	 	 	 	 	 	 	 	
Accounts payable (suppliers) and related parties*	 	Ps.	    506,171	 	 	 	-	 	
Financial debt	 	 	823,071	 	 	 	-	 	
Derivative financial instruments	 	 	-	 	 	 	210,650	 	
Total current	 	Ps.	     1,329,242	 	 	Ps.	210,650	 	
Financial debt	 	 	424,799	 	 	 	-	 	
Derivative financial instruments	 	 	-	 	 	 	42,468	 	
Total non-current assets	 	 	424,799	 	 	 	42,468	 	
Total	 	Ps.	     1,754,041	 	 	Ps.	253,118	 	
 
*It includes accounts payable to related parties in the amount of Ps.567.
 
As of October 1, 2014 the Company chose to early adopt IFRS 9 (2013) “Financial Instruments”, which comprises aspects related to classification and measurement of financial assets and financial liabilities, as well as hedge accounting treatment. Additional disclosures are presented in the Audited Consolidated Financial Statements.

10. Fair value measurements
 
The only financial assets and liabilities recognized at fair value on a recurring basis are the derivative financial instruments.
 
Fair value is the price that would be received from sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
 
	(i)	In the principal market for the asset or liability, or	
	(ii)	In the absence of a principal market, in the most advantageous market for the asset or liability.	
 
The principal or the most advantageous market must be accessible to by the Company.
 
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
 
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
 
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

 	

 	
 
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
 
	·	Level 1 – Quoted (unadjusted) prices in active markets for identical assets or liabilities.	
 
	·	Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.	
 
	·	Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.	
 
At December 31, 3014, all assets and liabilities on which fair value is measured or disclosed by the Company have been categorized at Level 2.
 
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. At December 31, 2014, the Company determined that there were no transfers between the distinct fair value hierarchy levels.
 
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
 
Set out below, is a comparison by class of the carrying amounts and fair values of the Company’s financial instruments, other than those for which carrying amounts are reasonable approximations of fair values:
 
  	 	Carrying amount	 	 	Fair value	 	
 	 	2014	 	 	2013	 	 	2014	 	 	2013	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Derivative financial instruments	 	Ps.	68,133	 	 	Ps.	11,133	 	 	Ps.	68,133	 	 	Ps.	11,133	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Financial debt*	 	 	(1,243,192	)	 	 	(559,945	)	 	 	(1,247,713	)	 	 	(562,739	)	
Derivative financial instruments	 	 	(253,118	)	 	 	(106,151	)	 	 	(253,118	)	 	 	(106,151	)	
Total	 	Ps.	(1,428,177	)	 	Ps.	(654,963	)	 	Ps.	(1,432,698	)	 	Ps.	(657,757	)	
 
*Floating rate borrowing

 	

 	
 
11. Rotable spare parts, furniture and equipment, net
 
a) The detail of rotable spare parts, furniture and equipment is shown below:

  	 	Gross value	 	 	Accumulated depreciation	 	 	Net carrying value	 	
 	 	At December
31, 2014	 	 	At December
31, 2013	 	 	At December
31, 2014	 	 	At December
31, 2013	 	 	At December
31, 2014	 	 	At December
31, 2013	 	
Aircraft parts and rotable spare parts	 	Ps.	241,190	 	 	Ps.	181,676	 	 	Ps.	(89,247	)	 	Ps.	(69,436	)	 	Ps.	151,943	 	 	Ps.	112,240	 	
Constructions and improvements	 	 	79,481	 	 	 	69,056	 	 	 	(55,377	)	 	 	(40,810	)	 	 	24,104	 	 	 	28,246	 	
Standardization	 	 	97,181	 	 	 	71,371	 	 	 	(49,559	)	 	 	(31,259	)	 	 	47,622	 	 	 	40,112	 	
Computer equipment	 	 	24,106	 	 	 	22,323	 	 	 	(20,233	)	 	 	(17,439	)	 	 	3,873	 	 	 	4,884	 	
Office furniture and equipment	 	 	27,798	 	 	 	27,014	 	 	 	(12,056	)	 	 	(8,398	)	 	 	15,742	 	 	 	18,616	 	
Electric power equipment	 	 	15,491	 	 	 	15,491	 	 	 	(8,144	)	 	 	(6,281	)	 	 	7,347	 	 	 	9,210	 	
Motorized transport equipment platform	 	 	4,597	 	 	 	4,597	 	 	 	(4,358	)	 	 	(4,267	)	 	 	239	 	 	 	330	 	
Communications equipment	 	 	8,054	 	 	 	7,545	 	 	 	(3,981	)	 	 	(3,200	)	 	 	4,073	 	 	 	4,345	 	
Workshop machinery and equipment	 	 	6,775	 	 	 	6,776	 	 	 	(2,197	)	 	 	(1,526	)	 	 	4,578	 	 	 	5,250	 	
Service carts on board	 	 	5,367	 	 	 	4,505	 	 	 	(2,698	)	 	 	(1,810	)	 	 	2,669	 	 	 	2,695	 	
Pre-delivery payments	 	 	1,396,008	 	 	 	879,001	 	 	 	-	 	 	 	-	 	 	 	1,396,008	 	 	 	879,001	 	
Workshop tools	 	 	11,883	 	 	 	10,395	 	 	 	(9,811	)	 	 	(8,796	)	 	 	2,072	 	 	 	1,599	 	
Construction and improvements in process	 	 	4,760	 	 	 	8,828	 	 	 	-	 	 	 	-	 	 	 	4,760	 	 	 	8,828	 	
Leasehold improvements to flight equipment	 	 	1,187,914	 	 	 	601,845	 	 	 	(629,632	)	 	 	(375,878	)	 	 	558,282	 	 	 	225,967	 	
Total	 	Ps.	3,110,605	 	 	Ps.	1,910,423	 	 	Ps.	(887,293	)	 	Ps.	(569,100	)	 	Ps.	2,223,312	 	 	Ps.	1,341,323	 	
  
b) During the years ended December 31, 2014 and 2013 the Company recorded additions of rotable spare parts, furniture and equipment by an amount of Ps.1,594,310 and Ps.1,140,930, respectively.
 
c) For the years ended December 31, 2014 and 2013, the Company recorded disposals of rotable, spare parts and furniture by an amount of Ps.400,744 and Ps.725,574.
 
d) Depreciation expense for the years ended December 31, 2014 and 2013 was Ps.318,103 and Ps.269,352, respectively. This amount was recognized as a component of operating expenses in the unaudited interim condensed consolidated statements of operations.
 
e) In accordance with the agreement between the Company and Airbus S.A.S. (“Airbus”) and IAE International Aero Engines AG (“IAE”) for the purchase of aircraft and engines, respectively, the Company agreed to make pre-delivery payments prior to the delivery of each aircraft and spare engine. These pre-delivery payments are calculated based on the price of each aircraft and engine, and following a formula established for such purpose in the agreement.
 
During the years ended December 31, 2014 and 2013, the amounts paid for aircraft pre-delivery payments were Ps.926,314 (US$69.1 million) and Ps.735,036 (US$56.9 million), respectively.

 	

 	

12. Financial liabilities
 
Financial debt
 
At December 31, 2014 and 2013, the Company’s short and long-term debt consists of the following:
 
 	 	 	2014	 	 	2013	 	
I.	Revolving line of credit with Banco Santander México, S.A., Institución de Banca Múltiple, Grupo Financiero Santander (“Santander”) and Banco Nacional de Comercio Exterior, S.N.C. (“Bancomext”), in U.S. dollars, to finance pre-delivery payments, maturing on December 1, 2016, bearing annual interest rate at the three-month LIBOR rate plus 2.50 percentage points.	 	 	1,243,192	 	 	 	559,945	 	
II.	Accrued interest	 	 	4,678	 	 	 	2,347	 	
 	 	 	 	1,247,870	 	 	 	562,292	 	
Less: Short-term maturities*	 	 	823,071	 	 	 	268,468	 	
Long-term total	 	 	424,799	 	 	 	293,824	 	
 
*Includes accrued interest by an amount of Ps.4,678.

 	

 	
 
The following table provides a summary of the Company’s principal payments of debt obligations and accrued interest at December 31, 2014:

 	 	 	2015	 	 	 	2016	 	 	 	Total	 	
Finance debt denominated in
foreign currency:	 	 	 	 	 	 	 	 	 	 	 	 	
  Santander/Bancomext	 	Ps.	823,071	 	 	Ps.	Ps. 424,799	 	 	Ps.	1,247,870	 	
Total	 	Ps.	823,071	 	 	Ps.	Ps. 424,799	 	 	Ps.	1,247,870	 	
 
This loan agreement provides for certain covenants, including limits to the ability to, among others:
 
i) Incur debt above a specified debt basket unless certain financial ratios are met.
ii) Create liens.
iii) Merge with or acquire any other entity without the previous authorization of the Banks.
iv) Dispose of certain assets.
v) Declare and pay dividends, or make any distribution on the Company’s share capital unless certain financial ratios are met.
 
At December 31, 2014 and December 31, 2013, the Company was in compliance with the covenants under the above-mentioned loan agreements.
 
13. Operating leases
 
Composition of the fleet, operating leases:
 
Aircraft
Type	 	Model	 	At December
31, 2014	 	 	At December
31, 2013	 	
A319	 	132	 	 	6	 	 	 	7	 	
A319	 	133	 	 	12	 	 	 	13	 	
A320	 	233	 	 	28	 	 	 	20	 	
A320	 	232	 	 	4	 	 	 	4	 	
 	 	 	 	 	50	 	 	 	44	 	

The Company expects to take delivery of four Airbus A320 aircraft and two Airbus A321 aircraft during 2015 (four of them based on the terms of the original Airbus purchase agreement).

14. Equity
 
As of December 31, 2014, the total number of authorized shares was 1,011,876,677; represented by common registered shares, issued and with no par value, fully subscribed and paid, comprised as follows:
 
 	 	Shares	 	 	 	 	
 	 	Fixed
Class I	 	 	Variable
Class II	 	 	Total shares	 	
Series A Shares	 	 	3,224	 	 	 	877,852,982	 	 	 	877,856,206	 	
Series B Shares	 	 	20,956	 	 	 	133,999,515	 	 	 	134,020,471	 	
 	 	 	24,180	 	 	 	1,011,852,497	 	 	 	1,011,876,677	 	
Treasury shares	 	 	-	 	 	 	(20,866,797	)	 	 	(20,866,797	)	
 	 	 	24,180	 	 	 	990,985,700	 	 	 	991,009,880	 	

 	

 	
 
All shares representing the Company’s capital stock, either Series A shares or Series B shares, grant the holders the same economic rights and there are no preferences and/or restrictions attaching to any class of shares on the distribution of dividends and the repayment of capital. Holders of the Company´s Series A common stock and Series B common stock are entitled to dividends when, and if, declared by a shareholder resolution, subject to the rights of the holders of all series of stock outstanding having priority rights to dividends. The Company’s revolving line of credit with Banco Santander México and Bancomext limit the Company´s ability to declare and pay dividends in the event that the Company fails to comply with the payment terms thereunder.
 
During the years ended December 31, 2014 and 2013 the Company did not declare any dividends.
   
15. Income tax
 
The Company calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings.
 
The major components of income tax expense in the unaudited interim condensed consolidated statement of operations for the years ended December 31, 2014 and 2013:
 
 	 	For the years ended December 31,	 	
 	 	2014	 	 	2013	 	
Current tax expense	 	Ps.	(17,345	)	 	Ps.	(8,710	)	
Deferred income tax  expense	 	 	(21,375	)	 	 	(8,840	)	
Total income tax  expense on profits	 	Ps.	(38,720	)	 	Ps.	(17,550	)	
 
16. Commitments
 
Committed expenditures for aircraft purchase and related flight equipment, including estimated amounts for contractual prices escalations and pre-delivery payments, will be as follows:

 	 	Commitment expenditures in thousands of U.S. dollars	 	 	Commitment expenditures equivalent in thousands of Mexican pesos	 	
2015	 	US$	45,395	 	 	Ps.	668,120	 	
2016	 	 	41,547	 	 	 	611,492	 	
2017	 	 	82,275	 	 	 	1,210,922	 	
2018	 	 	119,883	 	 	 	1,764,442	 	
2019	 	 	91,556	 	 	 	1,347,516	 	
2020 and thereafter	 	 	25,691	 	 	 	378,128	 	
 	 	US$	406,347	 	 	Ps.	5,980,620	 	

Litigation
 
The Company is a party to legal proceedings and claims that arise during the ordinary course of business. The Company believes the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.
  
17. Operating segments
 
The Company is managed as a single business unit that provides air transportation services. The Company has two geographic segments identified below:
 
Revenues:	 	2014	 	 	2013	 	
Domestic (Mexico)	 	Ps.	10,218,973	 	 	Ps.	9,619,983	 	
United States of America	 	 	3,817,769	 	 	 	3,382,488	 	
Total revenues	 	Ps.	14,036,742	 	 	Ps,	13,002,471	 	

 	

 	

Management’s discussion and analysis of financial condition and results of operations
 
Volaris Reports Solid Fourth Quarter 2014 Margin Expansion, Reaching Adjusted EBITDAR Margin of 31% and Operating Margin of 11%
 
Mexico City, Mexico, February 25, 2015 – Volaris* (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico and the United States, today announced its financial results for the fourth quarter and full year 2014.
 
The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS).
 
Fourth Quarter and Full Year 2014 Highlights
 
	<	Total operating revenues were Ps.3,958 million and Ps.14,037 million for the fourth quarter and full year, respectively, an increase of 24.3% and 8.0% year over year, respectively.	
 
	<	Non-ticket revenues increased 81.2% and 45.0% for the fourth quarter and full year, year over year, respectively. Non-ticket revenue per passenger increased 60.7% and 32.2%, reaching Ps.313 and Ps.279 (US$21 and US$19), for the fourth quarter and full year, respectively.	
 
	<	Total operating revenue per available seat mile (TRASM) increased to Ps.130.5 cents and Ps.118.7 cents for the fourth quarter and full year, respectively, an increase of 20.7% and a decrease of 0.5% year over year, respectively.	
 
	<	Operating expenses per available seat mile (CASM) increased 1.5% and 0.5% for the fourth quarter and full year, year over year, respectively, reaching Ps.116.4 cents and Ps.116.9 cents (US$7.9 cents and US$7.9 cents). CASM expressed in US cents decreased 9.9% and 10.7% for the fourth quarter and full year, year over year, respectively. CASM excluding fuel expressed in US dollars reached US$4.9 cents for the full year 2014.	
 
	<	Adjusted EBITDAR for the fourth quarter was Ps.1,239 million, a 156.1% increase year over year with an Adjusted EBITDAR margin of 31.3%, a margin increase of 16.1 percentage points. Adjusted EBITDAR for the full year was Ps.3,081 million, a 9.8% increase year over year with an Adjusted EBITDAR margin of 22.0%, a margin increase of 0.4 percentage points.	
 
	<	EBIT reached Ps.426 million with an operating margin of 10.8% for the fourth quarter, a margin improvement of 17.0 percentage points. EBIT reached Ps.204 million with an operating margin of 1.5% for the full year, a margin decrease of 0.9 percentage points.	
 
	<	Net income reached Ps.703 million (Ps.0.69 per share / US$0.47 per ADS) and net margin of 17.8% for the fourth quarter, a net margin improvement of 20.9 percentage points. Net income reached Ps.605 million (Ps.0.60 per share / US$0.41 per ADS) and net margin of 4.3% for the full year, a net margin improvement of 2.3 percentage points.	
 
	<	During the fourth quarter the net increase of cash and cash equivalents was Ps.342 million mainly driven by the resources provided by operating activities of Ps.470 million. Unrestricted cash and cash equivalents was Ps.2,265 million, representing 16% of last twelve month revenues.	
 
Volaris CEO Enrique Beltranena commented: “The network adjustments and non-ticket revenue growth strategy together with a continuous focus on cost control produced fourth quarter adjusted EBITDAR, operating, and net margin expansions. We continue to see improvement in the market environment as industry capacity discipline drives a stronger fare environment. We also foresee potential benefits in 2015 from lower fuel costs and the continuation of non-ticket revenue growth”.

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 1 	

 	

Improving Macroeconomic Environment
 
	<	The Mexican macroeconomic environment:	
	o	GDP growth for the full year 2014 was 2.1%.	
	o	Consumer confidence increased 4.7% and 4.3% year over year in November and December of 2014, respectively.	
	o	The Mexican General Economic Activity Indicator (IGAE) increased 2.04% in November of 2014 compared to the same period in 2013.	
 
	<	Exchange rate volatility: The Mexican peso depreciated 6.2% year over year against the US dollar, as the exchange rate devalued from an average of Ps.13.03 pesos per US dollar in the fourth quarter of 2013 to Ps.13.84 pesos per US dollar during the fourth quarter of 2014.	
 
	<	Lower fuel prices: The average economic fuel cost per gallon decreased 10.4% year over year in the fourth quarter of 2014, reaching Ps.35.6 (US$2.4) per gallon.	
 
Volaris Continuous Focus on Capacity Management Results in Unit Revenue Improvement
 
	<	Unit revenue improvement and capacity management: TRASM and yield increased 20.7% and 6.5% for the fourth quarter year over year, respectively, as a result of a strong international revenue environment and recovering domestic market pricing conditions. Domestic capacity decreased 0.7%, reflecting capacity discipline and supporting yield recovery, while international capacity increased 14.0%, responding to a stronger fare environment.	
 
	<	Non-ticket revenues growth: Non-ticket revenues excluding cargo per passenger increased 85.6% year over year for the fourth quarter. Our innovative revenue management techniques allow us to maximize revenue and our smart buyers are clearly understanding our business model by purchasing ancillaries early in the travel process. For example, we implemented ancillary bundles and new travel related products in the booking process.	
 
	<	Air traffic volume increase: The Mexican Dirección General de Aeronáutica Civil (DGAC) reported an overall passenger increase for Mexican carriers of 9.0% for 2014 and Volaris market share among Mexican carriers remained at 23.0% in both domestic and international markets, the second largest among them.	
 
	<	New routes launch: In the fourth quarter only, Volaris opened 18 routes (nine domestic and nine international), focusing on our VFR customer base, both in the domestic and the Mexico-US market. During 2014, Volaris opened 36 new point-to-point routes (24 domestic and 12 international).	

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 2 	

 	

Fourth Quarter Operating Revenues: Managing Capacity for Profitability Leading to Solid Revenue Indicators

Volaris booked 2.6 million passengers in the fourth quarter 2014, a 12.7% year over year growth rate. Volaris traffic (measured in terms of revenue passenger miles, or RPMs) increased 7.9%.
 
Volaris’ total operating revenues were Ps.3,958 million, an increase of 24.3% year over year. Yield increased 6.5% year over year.
 
During the fourth quarter 2014, our non-ticket revenues and non-ticket revenue per passenger reached Ps.818 million and Ps.313 (US$21), respectively. Non-ticket revenues per passenger increased 60.7%.
 
Passenger revenue per available seat mile (RASM) increased 11.6%, and total operating revenue per available seat mile (TRASM) was 20.7% higher, as a result of an improving fare environment and stronger non-ticket revenues.

Maintaining Cost Discipline: Early Tailwinds from Fuel Savings, Despite Exchange Rate Impact on Unit Costs

CASM for the fourth quarter 2014 was Ps.116.4 cents (US$7.9 cents), a 1.5% increase compared to the fourth quarter of 2013, driven by a higher average exchange rate during the quarter and lower capacity growth reflecting capacity discipline. On a US dollar basis, our CASM in the fourth quarter decreased 9.9% compared to the same period in 2013. CASM excluding fuel expressed in US dollars reached US$4.9 cents for the full year 2014.
 
As a result of our expanding operations into the US, our revenues denominated in US dollars in the fourth quarter reached 29%, continuing to build a natural hedge from the exchange rate perspective.
 
In the fourth quarter Volaris experienced pressures in US dollar denominated costs such as aircraft rents, international airport costs, and maintenance expenses. However, Volaris managed to offset most of these increases with efficiencies in salaries and benefits costs and landing, take-off and navigation expenses.
 
Young and Fuel Efficient Fleet
 
As of December 31, 2014, the Company´s fleet was comprised of 50 aircraft (32 A320s and 18 A319s), with an average age of 4 years. We expect to end 2015 with 55 aircraft, including our first two A321s in the second quarter of 2015. Volaris closed 2014 with the largest narrow body fleet among Mexican airlines.
 
Positive Cash Flow Generation, Strong Balance Sheet and Good Liquidity
 
During the fourth quarter the net increase of cash and cash equivalents was Ps.342 million mainly driven by the resources provided by operating activities of Ps.470 million.

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 3 	

 	

As of December 31, 2014, Volaris had Ps.2,265 million in unrestricted cash and cash equivalents, representing 16% of last twelve month revenues. The Company recorded negative net debt (or a positive net cash position) of Ps.1,017 million and total equity was Ps.4,470 million.
 
During the fourth quarter 2014, Volaris incurred capital expenditures of Ps.372 million, which included pre-delivery payments for future deliveries of aircraft net of refunds of Ps.189 million and acquisitions of rotable spare parts, furniture and equipment of Ps.183 million.
 
Active in Fuel Risk Management
 
Volaris has continued to remain active in its fuel risk management program with a combination of financial instruments including Jet Fuel swaps and purchase of call options. In the fourth quarter Volaris hedged 26% of fuel consumption at an average price of US$2.80 per gallon and combined with the 74% unhedged consumption resulted in a blended average economic fuel cost of US$2.42 per gallon.
 
Investors are urged to carefully read the Company's periodic reports filed with or furnished to the Securities and Exchange Commission, for additional information regarding the Company.

Analyst Coverage
 
Firm	Analyst	
Barclays	Benjamin M. Theurer	
Citi	Stephen Trent	
Cowen Securities	Helane Becker	
Deutsche Bank	Michael Linenberg	
Evercore Partners	Duane Pfennigwerth	
Itaù Unibanco	Renato Salomone	
Morgan Stanley	Eduardo Couto	
Santander	Ana Gabriela Reynal	
UBS	Victor Mizusaki	

 

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 4 	

 	

 
Conference Call/Webcast Details:
Volaris will conduct a conference call to discuss these results on February 26, 2015, at 11:00 a.m. EST. A live audio webcast of the conference call will be available to the public on a listen-only basis at http://ir.volaris.com
 
About Volaris:
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Volaris” or the “Company”) (NYSE: VLRS and BMV: VOLAR), is an ultra-low-cost carrier (ULCC), with point-to-point operations, serving Mexico and the United States. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since beginning operations in March 2006, Volaris has increased its routes from five to more than 130 and its fleet from four to 51 aircraft. Volaris offers more than 235 daily flight segments on routes that connect 38 cities in Mexico and 19 cities in the United States with the youngest aircraft fleet in Mexico. Volaris targets passengers who are visiting friends and relatives, cost-conscious business people and leisure travelers in Mexico and to select destinations in the United States. Volaris has received the ESR Award for Social Corporate Responsibility for five consecutive years.
 
For more information, please visit: www.volaris.com
 
Forward-looking Statements:
Statements in this release contain various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. When used in this release, the words "expects," "estimates," "plans," "anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "may," "will," "should," "seeks," "targets" and similar expressions are intended to identify forward-looking statements. Similarly, statements that describe the Company's objectives, plans or goals, or actions the Company may take in the future, are forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company's intentions and expectations regarding the delivery schedule of aircraft on order, announced new service routes and customer savings programs. All forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements are subject to a number of factors that could cause the Company's actual results to differ materially from the Company's expectations, including the competitive environment in the airline industry; the Company's ability to keep costs low; changes in fuel costs; the impact of worldwide economic conditions on customer travel behavior; the Company's ability to generate non-ticket revenues; and government regulation. Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings.
 
Investor Relations Contact:
Andrés Pliego / Investor Relations / ir@volaris.com / +52 55 5261 6444
Media Contact:
Cynthia Llanos / cllanos@gcya.net / +52 1 55 4577 0803

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 5 	

 	

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators
 
Unaudited
(In Mexican pesos, except otherwise indicated)	 	Three months ended December 31, 2014
(US Dollars)*	 	 	Three months ended December 31, 2014	 	 	Three months
ended
December 31,
2013	 	 	Variance
(%)	 	
Total operating revenues (millions)	 	 	269	 	 	 	3,958	 	 	 	3,184	 	 	 	24.3	%	
Total operating expenses (millions)	 	 	240	 	 	 	3,532	 	 	 	3,381	 	 	 	4.5	%	
EBIT (millions)	 	 	29	 	 	 	426	 	 	 	(197	)	 	 	NA	 	
EBIT margin	 	 	10.8	%	 	 	10.8	%	 	 	(6.2	)%	 	 	17.0	 pp	
Adjusted EBITDA (millions)	 	 	38	 	 	 	564	 	 	 	(111	)	 	 	NA	 	
Adjusted EBITDA margin	 	 	14.2	%	 	 	14.2	%	 	 	(3.5	)%	 	 	17.7	 pp	
Adjusted EBITDAR (millions)	 	 	84	 	 	 	1,239	 	 	 	484	 	 	 	>100%	 	
Adjusted EBITDAR margin	 	 	31.3	%	 	 	31.3	%	 	 	15.2	%	 	 	16.1	 pp	
Net  income (loss) (millions)	 	 	48	 	 	 	703	 	 	 	(97	)	 	 	NA	 	
Net margin	 	 	17.8	%	 	 	17.8	%	 	 	(3.1	)%	 	 	20.9	 pp	
Earnings per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.05	 	 	 	0.69	 	 	 	(0.10	)	 	 	NA	 	
Diluted	 	 	0.05	 	 	 	0.69	 	 	 	(0.10	)	 	 	NA	 	
Earnings per ADS:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.47	 	 	 	6.95	 	 	 	(0.96	)	 	 	NA	 	
Diluted	 	 	0.47	 	 	 	6.95	 	 	 	(0.96	)	 	 	NA	 	
Weighted average shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	-	 	 	 	1,011,876,677	 	 	 	1,011,876,677	 	 	 	0.0	%	
Diluted	 	 	-	 	 	 	1,011,876,677	 	 	 	1,011,876,677	 	 	 	0.0	%	
Available seat miles (ASMs) (millions)	 	 	-	 	 	 	3,033	 	 	 	2,946	 	 	 	3.0	%	
Domestic	 	 	-	 	 	 	2,191	 	 	 	2,207	 	 	 	(0.7	)%	
International	 	 	-	 	 	 	842	 	 	 	739	 	 	 	14.0	%	
Revenue passenger miles (RPMs) (millions)	 	 	-	 	 	 	2,512	 	 	 	2,329	 	 	 	7.9	%	
Domestic	 	 	-	 	 	 	1,824	 	 	 	1,760	 	 	 	3.7	%	
International	 	 	-	 	 	 	688	 	 	 	569	 	 	 	20.9	%	
Load factor	 	 	-	 	 	 	82.8	%	 	 	79.1	%	 	 	3.7	 pp	
Domestic	 	 	-	 	 	 	83.3	%	 	 	79.7	%	 	 	3.6	 pp	
International	 	 	-	 	 	 	81.7	%	 	 	77.0	%	 	 	4.7	 pp	
Total operating revenue per ASM (TRASM) (cents)	 	 	8.9	 	 	 	130.5	 	 	 	108.1	 	 	 	20.7	%	
Passenger revenue per ASM (RASM) (cents)	 	 	7.0	 	 	 	103.5	 	 	 	92.8	 	 	 	11.6	%	
Passenger revenue per RPM (Yield) (cents)	 	 	8.5	 	 	 	125.0	 	 	 	117.3	 	 	 	6.5	%	
Average fare	 	 	81.5	 	 	 	1,200	 	 	 	1,177	 	 	 	2.0	%	
Non-ticket revenue per passenger	 	 	21.2	 	 	 	313	 	 	 	195	 	 	 	60.7	%	
Non-ticket revenue excluding cargo per passenger	 	 	19.9	 	 	 	293	 	 	 	158	 	 	 	85.6	%	
Operating expenses per ASM (CASM) (cents)	 	 	7.9	 	 	 	116.4	 	 	 	114.8	 	 	 	1.5	%	
Operating expenses per ASM (CASM) ( US cents)	 	 	-	 	 	 	7.9	 	 	 	8.8	**	 	 	(9.9	)%	
CASM ex fuel (cents)	 	 	5.1	 	 	 	74.4	 	 	 	68.3	 	 	 	9.0	%	
CASM ex fuel (US cents)	 	 	-	 	 	 	5.1	 	 	 	5.2	**	 	 	(3.2	)%	
Booked passengers (thousands)	 	 	-	 	 	 	2,617	 	 	 	2,321	 	 	 	12.7	%	
Departures	 	 	-	 	 	 	19,476	 	 	 	18,274	 	 	 	6.6	%	
Block hours	 	 	-	 	 	 	50,519	 	 	 	48,966	 	 	 	3.2	%	
Fuel gallons consumed (millions)	 	 	-	 	 	 	35.8	 	 	 	34.5	 	 	 	3.9	%	
Average economic fuel cost per gallon	 	 	2.4	 	 	 	35.6	 	 	 	39.8	 	 	 	(10.4	)%	
Aircraft at end of period	 	 	-	 	 	 	50	 	 	 	44	 	 	 	13.6	%	
Average aircraft utilization (block hours)	 	 	-	 	 	 	12.4	 	 	 	12.9	 	 	 	(4.3	)	
Average exchange rate	 	 	-	 	 	 	13.84	 	 	 	13.03	 	 	 	6.2	%	
 
*Convenience translation to period-end U.S. dollars (Ps.14.7180). **Convenience translation to period-end U.S. dollars (Ps.13.0765)

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 6 	

 	

 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Financial and Operating Indicators
 
Unaudited
(In Mexican pesos, except otherwise indicated)	 	Year Ended December 31, 2014
(US Dollars)*	 	 	Year Ended December 31, 2014	 	 	Year Ended
December 31,
2013	 	 	Variance
(%)	 	
Total operating revenues (millions)	 	 	954	 	 	 	14,037	 	 	 	13,002	 	 	 	8.0	%	
Total operating expenses (millions)	 	 	940	 	 	 	13,833	 	 	 	12,685	 	 	 	9.0	%	
EBIT (millions)	 	 	14	 	 	 	204	 	 	 	317	 	 	 	(35.7	)%	
EBIT margin	 	 	1.5	%	 	 	1.5	%	 	 	2.4	%	 	 	(0.9)	pp	
Adjusted EBITDA (millions)	 	 	37	 	 	 	547	 	 	 	619	 	 	 	(11.7	)%	
Adjusted EBITDA margin	 	 	3.9	%	 	 	3.9	%	 	 	4.8	%	 	 	(0.9) pp	 	
Adjusted EBITDAR (millions)	 	 	209	 	 	 	3,081	 	 	 	2,806	 	 	 	9.8	%	
Adjusted EBITDAR margin	 	 	22.0	%	 	 	22.0	%	 	 	21.6	%	 	 	0.4 pp	 	
Net income (millions)	 	 	41	 	 	 	605	 	 	 	265	 	 	 	>100%	 	
Net margin	 	 	4.3	%	 	 	4.3	%	 	 	2.0	%	 	 	2.3 pp	 	
Earnings per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.04	 	 	 	0.60	 	 	 	0.31	 	 	 	92.7	%	
Diluted	 	 	0.04	 	 	 	0.60	 	 	 	0.31	 	 	 	92.7	%	
Earnings per ADS:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.41	 	 	 	5.98	 	 	 	3.10	 	 	 	92.7	%	
Diluted	 	 	0.41	 	 	 	5.98	 	 	 	3.10	 	 	 	92.7	%	
Weighted average shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	-	 	 	 	1,011,876,677	 	 	 	865,579,397	 	 	 	16.9	%	
Diluted	 	 	-	 	 	 	1,011,876,677	 	 	 	865,579,397	 	 	 	16.9	%	
Available seat miles (ASMs) (millions)	 	 	-	 	 	 	11,830	 	 	 	10,899	 	 	 	8.5	%	
Domestic	 	 	-	 	 	 	8,749	 	 	 	8,270	 	 	 	5.8	%	
International	 	 	-	 	 	 	3,081	 	 	 	2,629	 	 	 	17.2	%	
Revenue passenger miles (RPMs) (millions)	 	 	-	 	 	 	9,723	 	 	 	9,003	 	 	 	8.0	%	
Domestic	 	 	-	 	 	 	7,128	 	 	 	6,801	 	 	 	4.8	%	
International	 	 	-	 	 	 	2,595	 	 	 	2,202	 	 	 	17.8	%	
Load factor	 	 	-	 	 	 	82.2	%	 	 	82.6	%	 	 	(0.4	) pp	
Domestic	 	 	-	 	 	 	81.5	%	 	 	82.2	%	 	 	(0.7	) pp	
International	 	 	-	 	 	 	84.2	%	 	 	83.8	%	 	 	0.4	) pp	
Total operating revenue per ASM (TRASM) (cents)	 	 	8.1	 	 	 	118.7	 	 	 	119.3	 	 	 	(0.5	)%	
Passenger revenue per ASM (RASM) (cents)	 	 	6.5	 	 	 	95.5	 	 	 	102.0	 	 	 	(6.3	)%	
Passenger revenue per RPM (Yield) (cents)	 	 	7.9	 	 	 	116.3	 	 	 	123.5	 	 	 	(5.9	)%	
Average fare	 	 	78.3	 	 	 	1,152	 	 	 	1,243	 	 	 	(7.3	)%	
Non-ticket revenue per passenger	 	 	18.9	 	 	 	279	 	 	 	211	 	 	 	32.2	%	
Non-ticket revenue excluding cargo per passenger	 	 	17.4	 	 	 	256	 	 	 	170	 	 	 	50.3	%	
Operating expenses per ASM (CASM) (cents)	 	 	7.9	 	 	 	116.9	 	 	 	116.4	 	 	 	0.5	%	
Operating expenses per ASM (CASM) (US cents)	 	 	-	 	 	 	7.9	 	 	 	8.9	**	 	 	(10.7	)%	
CASM ex fuel (cents)	 	 	4.9	 	 	 	71.6	 	 	 	69.7	 	 	 	2.7	%	
CASM ex fuel (US cents)	 	 	-	 	 	 	4.9	 	 	 	5.3	**	 	 	(8.8	)%	
Booked passengers (thousands)	 	 	-	 	 	 	9,809	 	 	 	8,942	 	 	 	9.7	%	
Departures	 	 	-	 	 	 	74,659	 	 	 	68,716	 	 	 	8.6	%	
Block hours	 	 	-	 	 	 	196,467	 	 	 	183,211	 	 	 	7.2	%	
Fuel gallons consumed (millions)	 	 	-	 	 	 	138.5	 	 	 	129.1	 	 	 	7.3	%	
Average economic fuel cost per gallon	 	 	2.6	 	 	 	38.7	 	 	 	39.4	 	 	 	(1.7	)%	
Aircraft at end of period	 	 	-	 	 	 	50	 	 	 	44	 	 	 	13.6	%	
Average aircraft utilization (block hours)	 	 	-	 	 	 	12.4	 	 	 	12.5	 	 	 	(0.3	)	
Average exchange rate	 	 	-	 	 	 	13.30	 	 	 	12.77	 	 	 	4.2	%	
 
*Convenience translation to period-end U.S. dollars (Ps.14.7180). **Convenience translation to period-end U.S. dollars (Ps.13.0765)

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 7 	

 	

 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations
 
Unaudited
(In millions of Mexican pesos)	 	Three months ended December 31, 2014
(US Dollars)*	 	 	Three months ended December 31, 2014	 	 	Three months
ended
December 31,
2013	 	 	Variance
 (%)	 	
Operating revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Passenger	 	 	213	 	 	 	3,140	 	 	 	2,732	 	 	 	14.9	%	
Non-ticket	 	 	56	 	 	 	818	 	 	 	452	 	 	 	81.2	%	
 	 	 	269	 	 	 	3,958	 	 	 	3,184	 	 	 	24.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other operating income	 	 	(1	)	 	 	(13	)	 	 	(79	)	 	 	(83.2	)%	
Fuel	 	 	87	 	 	 	1,276	 	 	 	1,370	 	 	 	(6.8	)%	
Aircraft and engine rent expense	 	 	46	 	 	 	675	 	 	 	595	 	 	 	13.5	%	
Landing, take-off and navigation expenses	 	 	33	 	 	 	488	 	 	 	507	 	 	 	(3.7	)%	
Salaries and benefits	 	 	27	 	 	 	402	 	 	 	420	 	 	 	(4.1	)%	
Sales, marketing and distribution expenses	 	 	15	 	 	 	227	 	 	 	179	 	 	 	26.9	%	
Maintenance expenses	 	 	13	 	 	 	192	 	 	 	142	 	 	 	34.8	%	
Other operating expenses	 	 	10	 	 	 	148	 	 	 	161	 	 	 	(8.6	)%	
Depreciation and amortization	 	 	9	 	 	 	138	 	 	 	86	 	 	 	60.7	%	
Operating expenses	 	 	240	 	 	 	3,532	 	 	 	3,381	 	 	 	4.5	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	 	 	29	 	 	 	426	 	 	 	(197	)	 	 	NA	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Finance income	 	 	-	 	 	 	6	 	 	 	5	 	 	 	22.5	%	
Finance cost	 	 	(1	)	 	 	(9	)	 	 	(5	)	 	 	69.6	%	
Exchange gain, net	 	 	23	 	 	 	336	 	 	 	21	 	 	 	>100%	 	
Comprehensive financing result	 	 	23	 	 	 	334	 	 	 	21	 	 	 	>100%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income tax	 	 	52	 	 	 	760	 	 	 	(176	)	 	 	NA	 	
Income tax (expense) benefit	 	 	(4	)	 	 	(57	)	 	 	79	 	 	 	NA	 	
Net income (loss)	 	 	48	 	 	 	703	 	 	 	(97	)	 	 	NA	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attribution of net income (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity holders of the parent	 	 	48	 	 	 	703	 	 	 	(97	)	 	 	NA	 	
Non-controlling interest	 	 	-	 	 	 	-	 	 	 	-	 	 	 	 	 	
Net income (loss)	 	 	48	 	 	 	703	 	 	 	(97	)	 	 	NA	 	
 
*Convenience translation to period-end U.S. dollars (Ps.14.7180)

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 8 	

 	

 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Operations
 
Unaudited
(In millions of Mexican pesos)	 	Year Ended December 31, 2014
(US Dollars)*	 	 	Year Ended December 31, 2014	 	 	Year Ended
December 31,
2013	 	 	Variance
 (%)	 	
Operating revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Passenger	 	 	768	 	 	 	11,303	 	 	 	11,117	 	 	 	1.7	%	
Non-ticket	 	 	186	 	 	 	2,733	 	 	 	1,885	 	 	 	45.0	%	
 	 	 	954	 	 	 	14,037	 	 	 	13,002	 	 	 	8.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other operating income	 	 	(2	)	 	 	(22	)	 	 	(111	)	 	 	(80.1	)%	
Fuel	 	 	364	 	 	 	5,364	 	 	 	5,086	 	 	 	5.5	%	
Aircraft and engine rent expense	 	 	172	 	 	 	2,535	 	 	 	2,187	 	 	 	15.9	%	
Landing, take-off and navigation expenses	 	 	140	 	 	 	2,066	 	 	 	1,924	 	 	 	7.4	%	
Salaries and benefits	 	 	107	 	 	 	1,577	 	 	 	1,563	 	 	 	0.8	%	
Sales, marketing and distribution expenses	 	 	56	 	 	 	817	 	 	 	704	 	 	 	16.1	%	
Maintenance expenses	 	 	45	 	 	 	665	 	 	 	572	 	 	 	16.2	%	
Other operating expenses	 	 	33	 	 	 	490	 	 	 	459	 	 	 	6.9	%	
Depreciation and amortization	 	 	23	 	 	 	343	 	 	 	302	 	 	 	13.6	%	
Operating expenses	 	 	940	 	 	 	13,833	 	 	 	12,685	 	 	 	9.0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	14	 	 	 	204	 	 	 	317	 	 	 	(35.7	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Finance income	 	 	2	 	 	 	23	 	 	 	25	 	 	 	(5.3	)%	
Finance cost	 	 	(2	)	 	 	(32	)	 	 	(126	)	 	 	(74.3	)%	
Exchange gain, net	 	 	30	 	 	 	449	 	 	 	66	 	 	 	>100%	 	
Comprehensive financing result	 	 	30	 	 	 	440	 	 	 	(35	)	 	 	NA	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income tax	 	 	44	 	 	 	644	 	 	 	283	 	 	 	>100%	 	
Income tax expense	 	 	(3	)	 	 	(39	)	 	 	(18	)	 	 	>100%	 	
Net income	 	 	41	 	 	 	605	 	 	 	265	 	 	 	>100%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attribution of net income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity holders of the parent	 	 	41	 	 	 	605	 	 	 	269	 	 	 	>100%	 	
Non-controlling interest	 	 	-	 	 	 	-	 	 	 	(3	)	 	 	NA	 	
Net income	 	 	41	 	 	 	605	 	 	 	265	 	 	 	>100%	 	
 
*Convenience translation to period-end U.S. dollars (Ps.14.7180)

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 9 	

 	

 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Financial Position

(In millions of Mexican pesos)	 	December 31, 2014 Unaudited	 	 	December 31, 2014 Unaudited	 	 	December 31, 2013 Audited	 	
(US Dollars)*	 	 	 	 	 	 	 	 	 	 	 	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	154	 	 	 	2,265	 	 	 	2,451	 	
Accounts receivable	 	 	30	 	 	 	449	 	 	 	602	 	
Inventories	 	 	9	 	 	 	140	 	 	 	114	 	
Prepaid expenses and other current assets	 	 	15	 	 	 	228	 	 	 	323	 	
Financial instruments	 	 	4	 	 	 	63	 	 	 	11	 	
Guarantee deposits	 	 	37	 	 	 	545	 	 	 	499	 	
Total current assets	 	 	251	 	 	 	3,689	 	 	 	4,000	 	
Rotable spare parts, furniture and equipment, net	 	 	151	 	 	 	2,223	 	 	 	1,341	 	
Intangible assets, net	 	 	5	 	 	 	73	 	 	 	79	 	
Financial instruments	 	 	-	 	 	 	5	 	 	 	-	 	
Deferred income tax	 	 	22	 	 	 	328	 	 	 	305	 	
Guarantee deposits	 	 	241	 	 	 	3,541	 	 	 	2,603	 	
Other assets	 	 	3	 	 	 	46	 	 	 	49	 	
Total assets	 	 	673	 	 	 	9,905	 	 	 	8,378	 	
Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	
Unearned transportation revenue	 	 	97	 	 	 	1,421	 	 	 	1,393	 	
Accounts payable	 	 	34	 	 	 	506	 	 	 	537	 	
Accrued liabilities	 	 	76	 	 	 	1,122	 	 	 	1,033	 	
Taxes and fees payable	 	 	46	 	 	 	677	 	 	 	599	 	
Financial instruments	 	 	14	 	 	 	211	 	 	 	32	 	
Financial debt	 	 	56	 	 	 	823	 	 	 	268	 	
Other liabilities	 	 	1	 	 	 	9	 	 	 	9	 	
Total short-term liabilities	 	 	324	 	 	 	4,768	 	 	 	3,872	 	
Financial instruments	 	 	3	 	 	 	42	 	 	 	74	 	
Financial debt	 	 	29	 	 	 	425	 	 	 	294	 	
Accrued liabilities	 	 	10	 	 	 	144	 	 	 	138	 	
Other liabilities	 	 	1	 	 	 	21	 	 	 	11	 	
Employee benefits	 	 	1	 	 	 	8	 	 	 	5	 	
Deferred income taxes	 	 	2	 	 	 	27	 	 	 	22	 	
Total liabilities	 	 	369	 	 	 	5,435	 	 	 	4,415	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	 	
Capital stock	 	 	202	 	 	 	2,974	 	 	 	2,974	 	
Treasury shares	 	 	(8	)	 	 	(115	)	 	 	(108	)	
Contributions for future capital increases	 	 	-	 	 	 	-	 	 	 	-	 	
Legal reserve	 	 	3	 	 	 	38	 	 	 	38	 	
Additional paid-in capital	 	 	121	 	 	 	1,787	 	 	 	1,786	 	
Accumulated losses	 	 	(4	)	 	 	(56	)	 	 	(661	)	
Accumulated other comprehensive losses	 	 	(11	)	 	 	(158	)	 	 	(66	)	
Total equity	 	 	304	 	 	 	4,470	 	 	 	3,962	 	
Total liabilities and equity	 	 	673	 	 	 	9,905	 	 	 	8,378	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shares outstanding fully diluted	 	 	 	 	 	 	1,011,876,677	 	 	 	1,011,876,677	 	

*Convenience translation to period-end U.S. dollars (Ps.14.7180)

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 10 	

 	

 
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Cash Flows – Cash Flow Data Summary
 
Unaudited
(In millions of Mexican pesos)	 	Three months ended December 31, 2014
(US Dollars)*	 	 	Three months ended December 31, 2014	 	 	Three months
ended
December 31,
2013	 	
 	 	 	 	 	 	 	 	 	 	
Net cash flow provided by (used in) operating activities	 	 	32	 	 	 	470	 	 	 	(395	)	
Net cash flow used in investing activities	 	 	(25	)	 	 	(372	)	 	 	(288	)	
Net cash flow provided by financing activities	 	 	17	 	 	 	245	 	 	 	154	 	
Increase (decrease) in cash and cash equivalents	 	 	23	 	 	 	342	 	 	 	(529	)	
Net foreign exchange differences	 	 	7	 	 	 	108	 	 	 	6	 	
Cash and cash equivalents at beginning of period	 	 	123	 	 	 	1,814	 	 	 	2,974	 	
Cash and cash equivalents at end of period	 	 	154	 	 	 	2,265	 	 	 	2,451	 	
 
*Convenience translation to period-end U.S. dollars (Ps.14.7180)
 
Unaudited
(In millions of Mexican pesos)	 	Year Ended December 31, 2014
(US Dollars)*	 	 	Year Ended December 31, 2014	 	 	Year Ended
December 31,
2013	 	
 	 	 	 	 	 	 	 	 	 	
Net cash flow provided by operating activities	 	 	23	 	 	 	334	 	 	 	39	 	
Net cash flow used in investing activities	 	 	(81	)	 	 	(1,185	)	 	 	(312	)	
Net cash flow provided by financing activities	 	 	36	 	 	 	525	 	 	 	1,861	 	
(Decrease) increase in cash and cash equivalents	 	 	(22	)	 	 	(326	)	 	 	1,587	 	
Net foreign exchange differences	 	 	10	 	 	 	141	 	 	 	41	 	
Cash and cash equivalents at beginning of period	 	 	167	 	 	 	2,451	 	 	 	822	 	
Cash and cash equivalents at end of period	 	 	154	 	 	 	2,265	 	 	 	2,451	 	
 
*Convenience translation to period-end U.S. dollars (Ps.14.7180)

  	

*Controladora Vuela Compania de Aviacion, S.A.B. de C.V.	

 11 	

 	

 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
INVESTMENTS IN ASSOCIATES AND JOINT	
NEW YORK STOCK	VENTURES	 	 	CONSOLIDATED	
EXCHANGE: VLRS	 	 	 	 	 	
 	(THOUSAND OF MEXICAN PESOS)	 	 	 	 	
 
 	 	 	 	 	 	 	 	%	 	 	Total amount	 	
Company name	 	Principal activity	 	 	Number of shares	 	 	Owner
Ship	 	 	Acquisition cost	 	 	Current
value	 	
Total investment in associates	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 	
 
Notes N/A

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK	S.A.B. DE C.V.	QUARTER:	04	YEAR:	2014	
EXCHANGE CODE: VOLAR	 	 	 	 	 	
 	 	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	BREAKDOWN OF CREDITS	 	 	CONSOLIDATED	
 	(THOUSAND OF MEXICAN PESOS)	 	 	 	 	
 
 	 	 	 	 	 	 	 	 	 	Maturity or amortization of credits in national currency	 	 	Maturity or amortization of credits in foreign currency	 	
 	 	 	 	 	 	 	 	 	 	Time interval	 	 	Time interval	 	
Credit type / institution	 	Foreign
institution
(Yes/No)	 	Contract
signing
date	 	Expiration
date	 	Interest
rate	 	Current
year	 	 	Until
1 year	 	 	Until
2 year	 	 	Until
3 year	 	 	Until
4 year	 	 	Until
5 year
or more	 	 	Current
year	 	 	Until
1 year	 	 	Until
2 year	 	 	Until
3 year	 	 	Until
4 year	 	 	Until
5 year
or more	 	
Banks	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign trade	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Secured	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Commercial banks	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Banco Santander-Bancomext	 	Not	 	27/07/2011	 	01/12/2016	 	LIBOR +2.5%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	818,393	 	 	 	424,799	 	 	 	0	 	 	 	0	 	 	 	0	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total banks	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	818,393	 	 	 	424,799	 	 	 	0	 	 	 	0	 	 	 	0	 	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK EXCHANGE	S.A.B. DE C.V.	 	 	 	 	
CODE: VOLAR	 	QUARTER:	04	YEAR:	2014	
 	 	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	BREAKDOWN OF CREDITS	 	 	CONSOLIDATED	
 	(THOUSAND OF MEXICAN PESOS)	 	 	 	 	
 
 	 	 	 	 	 	 	 	 	 	Maturity or amortization of credits in national currency	 	 	Maturity or amortization of credits in foreign currency	 	
 	 	 	 	 	 	 	 	 	 	Time interval	 	 	Time interval	 	
Credit type / institution	 	Foreign
institution
(Yes/No)	 	Contract
signing
date	 	Expiration
date	 	Interest
rate	 	Current
year	 	 	Until
1 year	 	 	Until
2 year	 	 	Until
3 year	 	 	Until
4 year	 	 	Until
5 year
or more	 	 	Current
year	 	 	Until
1 year	 	 	Until
2 year	 	 	Until
3 year	 	 	Until
4 year	 	 	Until
5 year
or more	 	
Stock market	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Listed stock exchange	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Secured	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Private placements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Secured	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stock market listed in stock exchange and private placement	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	

 	

 	
 
MEXICAN STOCK EXCHANGE	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
CODE: VOLAR	S.A.B. DE C.V.	 	 	 	 	
 	 	QUARTER:	04	YEAR:	2014	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	BREAKDOWN OF CREDITS	 	 	CONSOLIDATED	
 	(THOUSAND OF MEXICAN PESOS)	 	 	 	 	
 
 	 	 	 	 	 	 	 	 	 	Maturity or amortization of credits in
national currency	 	 	Maturity or amortization of credits in
foreign currency	 	
 	 	 	 	 	 	 	 	 	 	Time interval	 	 	Time interval	 	
Credit type / institution	 	Foreign
institution
(Yes/No)	 	Date of
agreement	 	Expiration
date	 	         	 	Current
year	 	 	Until
1 year	 	 	Until
2 year	 	 	Until
3 year	 	 	Until
4 year	 	 	Until
5 year
or more	 	 	Current
year	 	 	Until
1 year	 	 	Until
2 year	 	 	Until
3 year	 	 	Until
4 year	 	 	Until
5 year
or more	 	
Other current and non-current liabilities with cost	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other current and non-current liabilities with cost	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Suppliers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Landing, take-off and navigation	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	208,317	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Administrative expenses	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	67,848	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	57,246	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance expenses	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	19,801	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales, marketing and distribution expenses	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	16,141	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Technology and communication	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	13,834	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other services	 	Not	 	 	 	 	 	 	 	 	 	 	 	 	2,783	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance expenses	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	53,732	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Aircraft and engine rent expenses	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,278	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Technology and communication	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	19,241	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Landing, take-off and navigation	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	16,407	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,773	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Administrative expenses	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,205	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales, marketing and distribution	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	998	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total suppliers	 	 	 	 	 	 	 	 	 	 	0	 	 	 	385,970	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	119,634	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other current and non-current liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Others	 	Not	 	 	 	 	 	 	 	 	0	 	 	 	2,227,401	 	 	 	74,597	 	 	 	43,130	 	 	 	27,225	 	 	 	27,832	 	 	 	0	 	 	 	539,875	 	 	 	42,468	 	 	 	0	 	 	 	0	 	 	 	0	 	
Others	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other current and non-current liabilities	 	 	 	 	 	 	 	 	 	 	0	 	 	 	2,227,401	 	 	 	74,597	 	 	 	43,130	 	 	 	27,225	 	 	 	27,832	 	 	 	0	 	 	 	539,875	 	 	 	42,468	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General total	 	 	 	 	 	 	 	 	 	 	0	 	 	 	2,613,371	 	 	 	74,597	 	 	 	43,130	 	 	 	27,225	 	 	 	27,832	 	 	 	0	 	 	 	1,477,902	 	 	 	467,267	 	 	 	0	 	 	 	0	 	 	 	0	 	
 
NOTES:
	1.	Revolving line of credit to finance pre-delivery payments. The pre-delivery payments refer to pre-payments made to aircraft an engine manufactures during the manufacturing stage of the aircraft.	
	2.	The financial debt breakdown does not include interest payable at December 31, 2014.	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK EXCHANGE	S.A.B. DE C.V.	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	MONETARY FOREIGN CURRENCY POSITION	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	 	 	
 	 	 	 	CONSOLIDATED	
 	(THOUSAND OF MEXICAN PESOS)	 	 	 	 	
 
 	 	Dollars	 	 	Other currencies	 	 	 	 	
Foreign currency position (thousands of pesos)	 	Thousands of
dollars	 	 	Thousands pesos	 	 	Thousands of
dollars	 	 	Thousands pesos	 	 	Thousands pesos
total	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Assets	 	 	477,071	 	 	 	7,021,519	 	 	 	0	 	 	 	0	 	 	 	7,021,519	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current	 	 	132,045	 	 	 	1,943,433	 	 	 	0	 	 	 	0	 	 	 	1,943,433	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non current (1)	 	 	345,026	 	 	 	5,078,086	 	 	 	0	 	 	 	0	 	 	 	5,078,086	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	132,163	 	 	 	1,945,169	 	 	 	0	 	 	 	0	 	 	 	1,945,169	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Short - term	 	 	100,415	 	 	 	1,477,902	 	 	 	0	 	 	 	0	 	 	 	1,477,902	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Long term	 	 	31,748	 	 	 	467,267	 	 	 	0	 	 	 	0	 	 	 	467,267	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net balance	 	 	344,908	 	 	 	5,076,350	 	 	 	0	 	 	 	0	 	 	 	5,076,350	 	
 
Notes
 
U.S. dollar amounts at December 31, 2014 have been included solely for the convenience of the reader and are translated from Mexican pesos, using an exchange rate of Ps.14.7180 per U.S. dollar, as reported by the Mexican Central Bank (Banco de México) as the rate for the payment of obligations denominated in foreign currency payable in Mexico in effect on December 31, 2014.
 
(1) Include pre-delivery payments, which are included as part of property, plant and equipment and therefore are not revaluated.

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	 	 	 	 	 	
NEW YORK STOCK	DEBT INSTRUMENTS	 	 	PAGE	1 / 2	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	CONSOLIDATED	

FINANCIAL LIMITATIONS IN CONTRACT, ISSUED DEED AND / OR TITLE
 
Revolving line of credit with Banco Santander (“México”), S.A., Institución de Banca Múltiple, Grupo Financiero Santander (“Santander”) and Banco Nacional de Comercio Exterior, S.N.C. (“Bancomext”)
 
This loan agreement provides for certain covenants, including limits to the ability to, among others:
 
	i)	Incur debt above a specified debt basket unless certain financial ratios are met.	
	ii)	Create liens.	
	iii)	Merge or acquire any other entity without the previous authorization of the Banks.	
	iv)	Dispose of certain assets.	
	v)	Declare and pay dividends, or make any distribution on the Company’s share capital unless certain financial ratios are met.	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	 	 	 	 	 	
NEW YORK STOCK	DEBT INSTRUMENTS	 	 	PAGE	2 / 2	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	CONSOLIDATED	

ACTUAL SITUATION OF FINANCIAL LIMITED
 
In compliance

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK EXCHANGE	S.A.B. DE C.V.	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	 	 	 	 	 	
NEW YORK STOCK	DISTRIBUTION OF REVENUE BY PRODUCT	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	CONSOLIDATED	
 	TOTAL INCOME	 	 	 	 	
 	(THOUSANDS OF MEXICAN PESOS)	 	 	 	 	
 
 	 	Net sales	 	 	 	 	 	Main	 	
Main products or product line	 	Volume	 	 	Amount	 	 	Market share (%)	 	 	Trademarks	 	 	Customers	 	
National income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Domestic (México)	 	 	0	 	 	 	10,218,973	 	 	 	0.00	 	 	 	 	 	 	 	 	 	
Export income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
United States of America	 	 	0	 	 	 	3,817,769	 	 	 	0.00	 	 	 	 	 	 	 	 	 	
Income of subsidiaries abroad	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	0	 	 	 	14,036,742	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
Notes

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
MEXICAN STOCK EXCHANGE	S.A.B. DE C.V.	QUARTER:	04	YEAR:	2014	
CODE: VOLAR	 	 	 	 	 	
 	ANALYSIS OF PAID CAPITAL STOCK	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGE CODE: VLRS	 	 	 	CONSOLIDATED	
 	CHARACTERISTICS OF THE SHARES	 	 	 	 	
 
 	 	 	 	 	Valid	 	 	Number of shares	 	 	Capital stock	 	
Series	 	Nominal value	 	 	coupon	 	 	Fixed portion	 	 	Variable portion	 	 	Mexican	 	 	Free subscription	 	 	Fixed	 	 	Variable	 	
A	 	 	0	 	 	 	0	 	 	 	3,224	 	 	 	877,852,982	 	 	 	0	 	 	 	0	 	 	 	9	 	 	 	2,579,714	 	
B	 	 	0	 	 	 	0	 	 	 	20,956	 	 	 	133,999,515	 	 	 	0	 	 	 	0	 	 	 	56	 	 	 	393,780	 	
TOTAL	 	 	 	 	 	 	 	24,180	 	 	 	1,011,852,497	 	 	 	0	 	 	 	0	 	 	 	65	 	 	 	2,973,494	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total number of shares representing the paid in capital stock on the date of sending the information	 	 	 	 	 	 	 	1,011,876,677	 	
 
Notes
 
In thousands of Mexican pesos.

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK	 	QUARTER:	03	YEAR:	2014	
EXCHANGE CODE: VOLAR	 	 	 	 	 	
 	DERIVATIVE FINANCIAL INSTRUMENTS	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	PAGE	1 / 3	
 	 	 	 	CONSOLIDATED	

Qualitative and quantitative information of the derivatives position of Controladora Vuela Compañía de Aviación, S.A.B. de C.V. y subsidiaries (“Volaris” o la “Compañía”) at December 31, 2014.
 
	1)	Management discussion about the financial derivatives instruments policies, explaining whether these policies allow them to be used only for hedging or other purposes such as negotiation.	
 
The Company´s activities are exposed to different financial risks. The Company’s global risk management program is focused on the uncertainty in the financial markets and aims to minimize the adverse effects on the net earnings and necessities of working capital. Volaris uses derivative financial instruments to hedge some of these risks and does not engage into derivatives instruments for speculative or negotiation purposes.
 
The Company has a Risk Management team that identifies and measures the exposure to different financial risks; additionally they design the strategies to mitigate them. Therefore has a Hedge Policy and procedures related to it, in which the strategies are based. All policies, procedures and strategies are approved by different administrative entities based on the Corporate Governance of the Company
 
The Hedging Policy establishes that derivative financial instruments transactions will be approved and implemented/monitored by various committees, additionally setting minimum liquidity levels, maximum notional, coverage range, markets, counterparties and approved instruments. The fulfillment of the Hedging Policy, and its procedures, are subject to internal and external audits.
 
The Hedging Policy is conservative regarding approved derivative financial instrument since it only allows plain vanilla simple instruments that maintain an effective correlation with the primary position to be hedged. It is the Company’s objective to ensure that derivative financial instruments held, at all times, qualify for hedge accounting.
 
Through the use of derivative financial instruments, Volaris aims to transfer a portion of the market risk to its financial counterparties; some of these are best described as follows:
 
	1.	Fuel price risk: Volaris engages in derivative financial instruments aiming to hedge against significant increases and/or sudden increases in the fuel price. Such instruments are negotiated in over the counter (“OTC”) market, with approved counterparties and within approved limits by the Hegding Policy. At the date of this report, the Company has Asian swaps and Asian call options, with U.S. Gulf Coast Jet Fuel 54 as underlying asset. Asian instruments provide a more prefect offsetting due that the payoff takes into account the average price of the underlying asset considered in Volaris main fuel supplier. These instruments qualified for hedge accounting and accordingly, their effects are presented as part of fuel cost in the consolidated statements of operations.	
 
	2.	Foreign currency risk: The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities; when revenue or expense is denominated in a different from the Company´s functional (including the amount payable arising from U.S. dollar denominated expenses and U.S. dollar linked expenses and payments). To mitigate this risk, the Hedging Policy allows the Company to use foreign exchange derivative financial instruments. As of the date of this report, the Company does not hold foreign currency related derivative financial instruments.	
 
	3.	Interest rate risk: The Company's exposure to the risk of changes in market interest rates relates primarily to the Company´s long term debt obligations and flight equipment operating lease agreements with floating interest rates. The Company’s results are affected by fluctuations in market interest rates due to the impact that such changes may have on lease payments indexed to London Inter Bank Offered Rate (“LIBOR”). The Company uses interest rate swaps to reduce its exposure to fluctuations in market interest rates and accounts for these instruments as an accounting hedge.	

 

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK	 	QUARTER:	04	YEAR:	2014	
EXCHANGE CODE: VOLAR	 	 	 	 	 	
 	DERIVATIVE FINANCIAL INSTRUMENTS	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	PAGE	2 / 3	
 	 	 	 	CONSOLIDATED	

Outstanding derivative financial instruments may require collateral to guarantee a portion of the unsettled loss prior to maturity. The amount of collateral delivered in pledge, is presented as part of non-current assets under the caption guarantee deposits, and the amount of the collateral is reviewed and adjusted on a daily basis based on the fair value of the derivative position.
 
Markets and eligible counterparties
 
The Company only operates in over the counter (“OTC”) markets. To manage counterparty risk, the Company negotiates ISDA agreements with counterparties based on credit assessments, limits overall exposure to any single counterparty and monitors the market position with each counterparty. This risk on derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. As of December 31, 2014, the Company has in place 9 ISDA agreements and operates through 6 of them.
 
All of the ISDA agreements have a credit support annex (“CSA”), where credit conditions are defined, among which credit lines and guidelines for margin calls are stipulated, such as minimum amounts and rounding. The execution of derivative financial instruments is distributed among the different counterparties to limit overall exposure to a single one, pursuing an efficient use of the various CSA thresholds to minimize potential margin calls.
 
	2)	Generic description of the valuation techniques, distinguishing instruments that are carried at cost or fair value and the valuation methods and techniques.	
 
The Company uses the valuations received from its counterparties. These fair values are compared against internally developed valuation techniques that are made using valid and recognized methodologies, through which the fair value of derivative financial instruments is estimated based on market levels and variables of the underlying asset, using Bloomberg as the main source of information.
 
Based on International Financial Reporting Standards ("IFRS"), under which the Company prepares its financial statements, Volaris realizes prospective and retrospective effectiveness tests, as well as hedging records where derivative financial instruments are classified according to the type of underlying asset (updated and monitored constantly).

 	

 	

 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK	 	QUARTER:	04	YEAR:	2014	
EXCHANGE CODE: VOLAR	 	 	 	 	 	
 	DERIVATIVE FINANCIAL INSTRUMENTS	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	PAGE	3 / 3	
 	 	 	 	CONSOLIDATED	

	3)	Management discussion on internal and external sources of liquidity that could be used to meet the requirements related to derivative financial instruments	
 
The Hedging Policy establishes that derivative financial instruments transactions will be approved and implemented/monitored by different committees, additionally setting minimum liquidity levels, maximum notional, coverage range, markets, counterparties and approved instruments. The fulfillment of the hedging policy, and its procedures, are subject to internal and external audits. To avoid putting the Company’s balance sheet at risk, the hedging policy establishes liquidity thresholds and Volaris may only enter into new derivative financial instruments positions when we have cash available to support the cost of such coverage.
 
At the date of this report, the management believes that the resources of the Company are sufficient to cover its current financial requirements and allows the settlements of obligations related to derivative financial instruments
 
	4)	Changes in exposure to the major risks identified and the administration thereof, contingencies and known or anticipated events by management that may affect future reports.	
 
The Company's activities are exposed to various financial risks, such as the fuel price risk, foreign currency risk and interest rate risk. During the fourth quarter of 2014 no significant changes were identified that can modify exposure to the risks described above, a situation that may change in the future.
 
The Hedging Policy is conservative regarding approved derivative financial instruments, since it only allows plain vanilla instruments that maintain effective correlation with the primary position hedged (in accordance with IFRS standards). Accordingly, changes in the fair value of derivative instruments will solely be the result of changes in the levels or prices of the underlying asset, and it will not modify the hedging objective for which they were initially celebrated.
 
Outstanding derivative financial instruments may require collateral to guarantee a portion of the unsettled loss prior to maturity. The execution of derivative financial instruments is distributed among its different counterparties to limit overall exposure to a single one, pursuing an efficient use of the various CSA thresholds to minimize potential margin calls.
 
During the fourth quarter of 2014, there wasn’t any default on any of the Company’s derivative financial instruments agreements.

	5)	Quantitative information	
 
At the date of this report, all the Company’s derivatives financial instruments are treated as hedge accounting, therefore the changes in the fair value of derivative instruments will solely be the result of changes in the levels or prices of the underlying asset and it will not modify the hedging objective for which they were initially celebrated.
   
Derivative financial instruments summary
At December 31 st , 2014
(Amounts in thousands Mexican pesos)
 
Instrument	Hedging or other purposes	Notional amount  / Nominal Value	Underlying asset value	Maturity	Fair value (4)	Collateral (5)	
			Underlying asset	Current quarter (4Q14)	Previous quarter (3Q14)		Current quarter (4Q14)	Previous quarter (3Q14)		
Interest swaps (1)	Hedge	USD $70.0M	6M libor	1.93%	2.14%	March 2017 / April 2017	-83,495	-82,412	8,833	
Fuel Asian swaps (2)	Hedge	8.5M gallons	Jet Fuel GC 54	USD $1.65 / Gal	USD $2.63 / Gal	Monthly until June 2015	-169,623*	-44,227*	24,876	
Fuel Asian call options (3)	Hedge	54.1M gallons	Jet Fuel GC 54	USD $1.65 / Gal	USD $2.63 / Gal	Monthly until March 2016	68,133	-	-	
*Fair value includes their respective settlement, which it is pay the 5 following days after the end of the month.
 
	(1)	Two derivative financial instruments allocated with the same counterparty.	
	(2)	35 derivative financial instruments allocated with 5 counterparties.	
	(3)	63 derivative financial instruments allocated with 3 counterparties.	
	(4)	Positions from the Company’s point of view.	
	(5)	All of the ISDA agreements have a credit support annex (“CSA”), where credit conditions are defined, among which credit lines and guidelines for margin calls are stipulated, such as minimum amounts and rounding. The execution of derivative financial instruments is allocated among the different counterparties to limit overall exposure to a single one, pursuing an efficient use of the various CSA thresholds to minimize potential margin calls.	

 	

 	
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	 	 	 	 	
 	S.A.B. DE C.V.	 	 	 	 	
MEXICAN STOCK	 	QUARTER	04	YEAR:	2014	
EXCHANGE CODE: VOLAR	 	 	 	 	 	
 	NOTES TO FINANCIAL STATEMENTS	 	 	 	 	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	CONSOLIDATED	

11040000: At December 31, 2014 and 2013, this item is comprised mainly of recoverable taxes and other minor receivables.
 
The tax recoverable balances reported at December 31, 2014 and 2013 amount to Ps.234,457 and Ps.331,479, respectively.
 
11060060: At December 31, 2014 and 2013, this item is comprised mainly of maintenance deposits for flight equipment paid to lessors (maintenance reserves), in the amount of Ps.505,744 and Ps.459,531, respectively.
 
12030030: At December 31, 2014 and 2013, this item is comprised mainly of: i) flight equipment improvements (capitalized maintenance) in the amount of Ps.1,187,540 and Ps.601,845, respectively; ii) rotable spare parts amounting to Ps.241,190 and Ps.181,676, respectively, and iii) other minor assets.
 
12030050: At December 31, 2014 and 2013, this item is comprised mainly of pre-delivery payments for aircraft acquisitions in the amount of Ps.1,396,008 and Ps.879,001, respectively, and iii) other minor assets.
 
12060040: At December 31, 2014 and 2013, in this item is presented the software.
 
12080050: At December 31, 2014, this item mainly includes maintenance deposits (maintenance reserves) and security deposits for flight equipment paid to lessors in the amount of Ps.2,936,428 and Ps.556,275, respectively.
 
At December 31, 2013, this item mainly includes maintenance deposits (maintenance provisions) and security deposits for flight equipment paid to lessors in the amount of Ps.2,147,720 and Ps.404,096, respectively.
 
21050020: At December 31, 2014 and 2013, certain taxes, rights, and tariffs are presented in this reference, which include value added tax, federal public transportation tax, federal charges for security review, charges for the use of airport facilities and taxes related to international arrivals and departures that the Company charges passengers n behalf of governmental entities and airports. These taxes, rights and tariffs are paid to those entities periodically.
 
21060080: At December 31, 2014, this item is comprised of other accrued liabilities and liabilities contracted with related parties in the amount of Ps.1,121,541 and Ps.567, respectively.
 
At December 31, 2013, this item is comprised of other accrued liabilities and liabilities contracted with related parties in the amount of Ps.1,032,682 and Ps.3,036, respectively.
 
30050000: At December 31, 2014 and 2013, the long term incentive plan cost is presented in this item.
 
30070000: At December 31, 2014 and 2013, the treasury shares value is presented exclusively in this item.