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 April 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 Q           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  Q
 
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  Q
 
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  Q
 
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: April 22, 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	
 	 	 	
99.26	 	First quarter 2015 financial statements and press release dated April 22, 2015.	

 	

 
Exhibit 99.26
 
 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:     01    YEAR:     2015	
CODE: VOLAR	STATEMENT OF FINANCIAL POSITION	 	
 	 	 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
  	AT MARCH 31, 2015 AND DECEMBER 31, 2014	CONSOLIDATED	
 	 	 	
 	(Thousands of Mexican Pesos)	 	

 	 	 	 	 	Ending current	 	 	Previous  year  end	 	
Ref	 	 	Account / Subaccount	 	Amount	 	 	Amount	 	
 	10000000	 	 	Total assets	 	 	11,084,711	 	 	 	9,905,040	 	
 	11000000	 	 	Total current assets	 	 	4,464,918	 	 	 	3,688,669	 	
 	11010000	 	 	Cash and cash equivalents	 	 	3,155,850	 	 	 	2,264,857	 	
 	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	 	 	175,130	 	 	 	176,907	 	
 	11030010	 	 	Accounts receivables	 	 	209,826	 	 	 	204,693	 	
 	11030020	 	 	Provisions for doubtful accounts	 	 	-34,696	 	 	 	-27,786	 	
 	11040000	 	 	Other receivables, net	 	 	111,044	 	 	 	271,653	 	
 	11040010	 	 	Other receivables	 	 	111,160	 	 	 	271,653	 	
 	11040020	 	 	Provisions for doubtful accounts	 	 	-116	 	 	 	0	 	
 	11050000	 	 	Inventories	 	 	137,720	 	 	 	139,673	 	
 	11051000	 	 	Biological current assets	 	 	0	 	 	 	0	 	
 	11060000	 	 	Other current assets	 	 	885,174	 	 	 	835,579	 	
 	11060010	 	 	Prepaid expenses	 	 	247,052	 	 	 	227,708	 	
 	11060020	 	 	Financial instruments	 	 	55,753	 	 	 	62,679	 	
 	11060030	 	 	Assets available for sale	 	 	0	 	 	 	0	 	
 	11060050	 	 	Rights and licenses	 	 	0	 	 	 	0	 	
 	11060060	 	 	Other	 	 	582,369	 	 	 	545,192	 	
 	12000000	 	 	Total non-current assets	 	 	6,619,793	 	 	 	6,216,371	 	
 	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	 	 	2,190,738	 	 	 	2,223,312	 	
 	12030010	 	 	Land and buildings	 	 	0	 	 	 	0	 	
 	12030020	 	 	Machinery and industrial equipment	 	 	0	 	 	 	0	 	
 	12030030	 	 	Other equipment	 	 	1,694,347	 	 	 	1,630,356	 	
 	12030040	 	 	Accumulated depreciation and amortization	 	 	(981,036	)	 	 	(887,293	)	
 	12030050	 	 	Construction in process	 	 	1,477,427	 	 	 	1,480,249	 	
 	12040000	 	 	Investment property	 	 	0	 	 	 	0	 	
 	12050000	 	 	Biological non- current assets	 	 	0	 	 	 	0	 	
 	12060000	 	 	Intangible assets,net	 	 	69,257	 	 	 	72,566	 	
 	12060010	 	 	Goodwill	 	 	0	 	 	 	0	 	
 	12060020	 	 	Trademarks	 	 	0	 	 	 	0	 	
 	12060030	 	 	Rights and licenses	 	 	1,940	 	 	 	2,070	 	
 	12060031	 	 	Concessions	 	 	0	 	 	 	0	 	
 	12060040	 	 	Other intangible assets	 	 	67,317	 	 	 	70,496	 	
 	12070000	 	 	Deferred tax assets	 	 	521,783	 	 	 	327,785	 	
 	12080000	 	 	Other non-current assets	 	 	3,838,015	 	 	 	3,592,708	 	
 	12080001	 	 	Prepaid expenses	 	 	0	 	 	 	0	 	
 	12080010	 	 	Financial instruments	 	 	82,888	 	 	 	5,454	 	
 	12080020	 	 	Employee benefits	 	 	0	 	 	 	0	 	
 	12080021	 	 	Available for sale assets	 	 	0	 	 	 	0	 	
 	12080040	 	 	Deferred charges	 	 	0	 	 	 	0	 	
 	12080050	 	 	Other	 	 	3,755,127	 	 	 	3,587,254	 	
 	20000000	 	 	Total liabilities	 	 	6,278,943	 	 	 	5,435,260	 	
 	21000000	 	 	Total short-term liabilities	 	 	5,642,817	 	 	 	4,768,367	 	
 	21010000	 	 	Financial Debt	 	 	846,054	 	 	 	818,393	 	
 	21020000	 	 	Stock market loans	 	 	0	 	 	 	0	 	
 	21030000	 	 	Other liabilities with cost	 	 	0	 	 	 	0	 	
 	21040000	 	 	Suppliers	 	 	264,738	 	 	 	505,604	 	
 	21050000	 	 	Taxes payable	 	 	1,389,588	 	 	 	677,094	 	
 	21050010	 	 	Income tax payable	 	 	363,406	 	 	 	47,746	 	
 	21050020	 	 	Other taxes payable	 	 	1,026,182	 	 	 	629,348	 	
 	21060000	 	 	Other current liabilities	 	 	3,142,437	 	 	 	2,767,276	 	

 	

 	

 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:      2015	
CODE: VOLAR	STATEMENT OF FINANCIAL POSITION	 	
 	 	 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
 	AT MARCH 31, 2015 AND DECEMBER 31, 2014	CONSOLIDATED	
 	 	 	
 	(Thousands of Mexican Pesos)	 	

 	 	 	 	 	Ending current	 	 	Previous year end	 	
Ref	 	 	Account / Subaccount	 	Amount	 	 	Amount	 	
 	21060010	 	 	Interest payable	 	 	5,373	 	 	 	4,678	 	
 	21060020	 	 	Financial instruments	 	 	92,130	 	 	 	210,650	 	
 	21060030	 	 	Deferred revenue	 	 	1,959,950	 	 	 	1,420,935	 	
 	21060050	 	 	Employee benefits	 	 	0	 	 	 	0	 	
 	21060060	 	 	Provisions	 	 	10,669	 	 	 	8,905	 	
 	21060061	 	 	Current liabilities related to available for sale assets	 	 	0	 	 	 	0	 	
 	21060080	 	 	Other	 	 	1,074,315	 	 	 	1,122,108	 	
 	22000000	 	 	Total long-term liabilities	 	 	636,126	 	 	 	666,893	 	
 	22010000	 	 	Financial debt	 	 	404,748	 	 	 	424,799	 	
 	22020000	 	 	Stock market loans	 	 	0	 	 	 	0	 	
 	22030000	 	 	Other liabilities with cost	 	 	0	 	 	 	0	 	
 	22040000	 	 	Deferred tax liabilities	 	 	31,431	 	 	 	26,842	 	
 	22050000	 	 	Other non-current liabilities	 	 	199,947	 	 	 	215,252	 	
 	22050010	 	 	Financial instruments	 	 	37,542	 	 	 	42,468	 	
 	22050020	 	 	Deferred revenue	 	 	0	 	 	 	0	 	
 	22050040	 	 	Employee benefits	 	 	8,350	 	 	 	7,737	 	
 	22050050	 	 	Provisions	 	 	23,739	 	 	 	20,986	 	
 	22050051	 	 	Long-term liabilities related to available for sale assets	 	 	0	 	 	 	0	 	
 	22050070	 	 	Other	 	 	130,316	 	 	 	144,061	 	
 	30000000	 	 	Total equity	 	 	4,805,768	 	 	 	4,469,780	 	
 	30010000	 	 	Equity attributable to equity holders of parent	 	 	4,805,768	 	 	 	4,469,780	 	
 	30030000	 	 	Capital stock	 	 	2,973,559	 	 	 	2,973,559	 	
 	30040000	 	 	Shares repurchased	 	 	0	 	 	 	0	 	
 	30050000	 	 	Premium on issuance of shares	 	 	1,787.950	 	 	 	1,786,790	 	
 	30060000	 	 	Contributions for future capital increases	 	 	1	 	 	 	1	 	
 	30070000	 	 	Other contributed capital	 	 	-114,789	 	 	 	-114,789	 	
 	30080000	 	 	Retained earnings (accumulated losses)	 	 	288,851	 	 	 	-17,533	 	
 	30080010	 	 	Legal reserve	 	 	38,250	 	 	 	38,250	 	
 	30080020	 	 	Other reserves	 	 	0	 	 	 	0	 	
 	30080030	 	 	Accumulate losses	 	 	-55,783	 	 	 	-660,967	 	
 	30080040	 	 	Net (loss) income for the period	 	 	306,384	 	 	 	605,184	 	
 	30080050	 	 	Others	 	 	0	 	 	 	0	 	
 	30090000	 	 	Accumulated other comprehensive income (net of tax)	 	 	-129,804	 	 	 	-158,248	 	
 	30090010	 	 	Gain on revaluation of properties	 	 	0	 	 	 	0	 	
 	30090020	 	 	Actuarial gains (losses) from labor obligations	 	 	0	 	 	 	-1,482	 	
 	30090030	 	 	Foreing 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	 	 	-129,804	 	 	 	-156,766	 	
 	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.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:    2015	
CODE: VOLAR	STATEMENT OF FINANCIAL POSITION	 	
 	INFORMATIONAL DATA	 	
NEW YORK STOCK			
EXCHANGE: VLRS		 	
 	AT MARCH 31, 2015 AND DECEMBER 31, 2014	CONSOLIDATED	
 	 	 	
 	(Thousands of Mexican Pesos)	 	

 	 	 	 	 	Ending current	 	 	Previous  year end	 	
Ref	 	 	Concepts	 	Amount	 	 	Amount	 	
 	91000010	 	 	Short-term foreign currency liabilities	 	 	1,309,438	 	 	 	1,477,902	 	
 	91000020	 	 	Long term foreign currency liabilities	 	 	442,290	 	 	 	467,267	 	
 	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 (*)	 	 	2,905	 	 	 	2,805	 	
 	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 afecct cash and cash equivalents	
	(*)	Data in units	

 	

 	
  
  	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:     01    YEAR:     2015	
CODE: VOLAR		 	
 	STATEMENTS OF COMPREHENSIVE INCOME	 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
  	FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014	CONSOLIDATED	
 	(Thousand of Mexican Pesos)	 	

 	 	 	 	 	Current Year	 	 	Previous year	 	
Ref	 	 	Concepts	 	Accumulated	 	 	Quarter	 	 	Accumulated	 	 	Quarter	 	
 	40010000	 	 	Revenues	 	 	3,768,230	 	 	 	3,768,230	 	 	 	2,775,358	 	 	 	2,775,358	 	
 	40010010	 	 	Services	 	 	3,768,230	 	 	 	3,768,230	 	 	 	2,775,358	 	 	 	2,775,358	 	
 	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	 	 	3,768,230	 	 	 	3,768,230	 	 	 	2,775,358	 	 	 	2,775,358	 	
 	40030000	 	 	General expenses	 	 	3,438,339	 	 	 	3,438,339	 	 	 	3,264,530	 	 	 	3,264,530	 	
 	40040000	 	 	(Loss) income before other income (expenses), net	 	 	329,891	 	 	 	329,891	 	 	 	-489,172	 	 	 	-489,172	 	
 	40050000	 	 	Other income, net	 	 	16,213	 	 	 	16,213	 	 	 	1,114	 	 	 	1,114	 	
 	40060000	 	 	Operating (loss) income	 	 	346,104	 	 	 	346,104	 	 	 	-488,058	 	 	 	-488,058	 	
 	40070000	 	 	Finance income	 	 	95,524	 	 	 	95,524	 	 	 	16,197	 	 	 	16,197	 	
 	40070010	 	 	Interest income	 	 	9,187	 	 	 	9,187	 	 	 	4,889	 	 	 	4,889	 	
 	40070020	 	 	Gain on foreign exchange, net	 	 	86,333	 	 	 	86,333	 	 	 	11,300	 	 	 	11,300	 	
 	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	 	 	4	 	 	 	4	 	 	 	8	 	 	 	8	 	
 	40080000	 	 	Finance costs	 	 	4,289	 	 	 	4,289	 	 	 	5,381	 	 	 	5,381	 	
 	40080010	 	 	Interest expense	 	 	0	 	 	 	0	 	 	 	0	 	 	 	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	 	 	4,289	 	 	 	4,289	 	 	 	5,381	 	 	 	5,381	 	
 	40090000	 	 	Finance income (loss), net	 	 	91,235	 	 	 	91,235	 	 	 	10,816	 	 	 	10,816	 	
 	40100000	 	 	Share of income (loss) of  associates and joint ventures	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	40110000	 	 	(Loss) income before income tax	 	 	437,339	 	 	 	437,339	 	 	 	-477,242	 	 	 	-477,242	 	
 	40120000	 	 	Income tax (expense) benefit	 	 	130,955	 	 	 	130,955	 	 	 	-107,110	 	 	 	-107,110	 	
 	40120010	 	 	Current tax	 	 	332,304	 	 	 	332,304	 	 	 	2,260	 	 	 	2,260	 	
 	40120020	 	 	Deferred tax	 	 	-201,349	 	 	 	-201,349	 	 	 	-109,370	 	 	 	-109,370	 	
 	40130000	 	 	(Loss) income from continuing operations	 	 	306,384	 	 	 	306,384	 	 	 	-370,132	 	 	 	-370,132	 	
 	40140000	 	 	(Loss) income from discontinued operations	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	40150000	 	 	Net (loss) income	 	 	306,384	 	 	 	306,384	 	 	 	-370,132	 	 	 	-370,132	 	
 	40160000	 	 	Loss attributable to non-controlling interests	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	40170000	 	 	(Loss) income attributable to owners of parent	 	 	306,384	 	 	 	306,384	 	 	 	-370,132	 	 	 	-370,132	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40180000	 	 	Earnings (loss) income per share basic	 	 	0.30	 	 	 	0.30	 	 	 	-0.37	 	 	 	-0.37	 	
 	40190000	 	 	Earnings (loss) income per share diluted	 	 	0.30	 	 	 	0.30	 	 	 	-0.37	 	 	 	-0.37	 	

 	

 	
   
MEXICAN STOCK EXCHANGE	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	QUARTER:   01   YEAR:    2015	
CODE: VOLAR		 	
 		 	
NEW YORK STOCK	STATEMENTS OF COMPREHENSIVE INCOME	 	
EXCHANGE CODE: VLRS	OTHER COMPERHENSIVE INCOME (NET OF INCOME TAX)	CONSOLIDATED	
	FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014		
 	(Thousand of Mexican Pesos)	 	

 	 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	 	Account / Subaccount	 	Accumulated	 	 	Quarter	 	 	Accumulated	 	 	Quarter	 	
 	40200000	 	 	Net (loss) income	 	 	306,384	 	 	 	306,384	 	 	 	-370,132	 	 	 	-370,132	 	
 	 	 	 	Disclosures not be reclassified on income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40210000	 	 	Property revaluation gains	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	40220000	 	 	Actuarial earnings (loss) from labor obligations	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	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	 	 	28,444	 	 	 	28,444	 	 	 	846	 	 	 	846	 	
 	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	 	 	28,444	 	 	 	28,444	 	 	 	846	 	 	 	846	 	
 	 	 	 	Total comprehensive (loss) income	 	 	334,828	 	 	 	334,828	 	 	 	-369,286	 	 	 	-369,286	 	
 	40320000	 	 	Comprehensive income (loss), attributable to non-controlling interests	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	
 	40310000	 	 	Comprehensive (loss) income, attributable to equity holders of parent	 	 	334,828	 	 	 	334,828	 	 	 	-369,286	 	 	 	-369,286	 	

 	

 	
  
  	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:     2015	
CODE: VOLAR	STATEMENTS OF COMPREHENSIVE INCOME	 	
 	INFORMATIONAL DATA	 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
  	FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014	CONSOLIDATED	
 	(Thousand of Mexican Pesos)	 	

 	 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	 	Account / Subaccount	 	Accumulated	 	 	Quarter	 	 	Accumulated	 	 	Quarter	 	
 	92000010	 	 	Operating depreciation and amortization	 	 	103,169	 	 	 	103,169	 	 	 	57,685	 	 	 	57,685	 	

 	

 	
 
  	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:     2015	
CODE: VOLAR	STATEMENTS OF COMPREHENSIVE INCOME	 	
 	INFORMATIONAL DATA (12 MONTHS)	 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
  		CONSOLIDATED	
 	(Thousand of Mexican Pesos)	 	

 	 	 	 	 	Year	 	
Ref	 	 	Account/Subaccount	 	Current	 	 	Previous	 	
 	92000030	 	 	Revenues net (**)	 	 	15,029,614	 	 	 	12,716,242	 	
 	92000040	 	 	Operating (loss) income (**)	 	 	1,038,265	 	 	 	-208,658	 	
 	92000060	 	 	Net (loss) income (**)	 	 	1,281,700	 	 	 	-40,218	 	
 	92000050	 	 	(Loss) income, attributable to equity holders of parent(**)	 	 	1,281,700	 	 	 	-39,168	 	
 	92000070	 	 	Operating depreciation and amortization (**)	 	 	387,999	 	 	 	277,971	 	

(**) Information last 12 months

 	

 	
 
  	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:     2015	
CODE: VOLAR	STATEMENT OF CHANGES IN EQUITY	 	
 		 	
NEW YORK EXCHANGE			
EXCHANGE CODE: VLRS	(THOUSANDS OF MEXICAN PESOS)	 	
  		CONSOLIDATED	

 

Concepts	 	 	 	 	 	 	 	 	 	 	Retained earnings (accumulated losses)	 	 	 	 	 	 	 	 	 	
Increases	Capital stock	 	Shares
repurchased	 	Additional
paid-incapital	 	Contributions for
future capital	 	Other capital
contributed	 	Reserves	 	Unappropriated
earnings
(Accumulated
Losses)	 	Accumulated other
comprehensive
income (loss)	 	Equity
attributable to
holders of parent	 	Non- controlling
interests	 	Total equity	 	
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	 	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	 	 	82	 	 	0	 	 	0	 	 	0	 	 	0	 	 	0	 	 	82	 	 	0	 	 	82	 	
Comprehensive income	 	0	 	 	0	 	 	0	 	 	0	 	 	0	 	 	0	 	 	-370,132	 	 	846	 	 	-369,286	 	 	0	 	 	-369,286	 	
Balance at March 31, 2014	 	2,973,559	 	 	0	 	 	1,785,826	 	 	1	 	 	-107,730	 	 	38,250	 	 	-1,031,099	 	 	-65,641	 	 	3,593,166	 	 	0	 	 	3,593,166	 	
Balance at January 1, 2015	 	2,973,559	 	 	0	 	 	1,785,790	 	 	1	 	 	-114,789	 	 	38,250	 	 	-55,783	 	 	-158,248	 	 	4,469,780	 	 	0	 	 	4,469,780	 	
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	 	 	1,160	 	 	0	 	 	0	 	 	0	 	 	0	 	 	0	 	 	1,160	 	 	0	 	 	1.160	 	
Comprehensive (loss) income	 	0	 	 	0	 	 	0	 	 	0	 	 	0	 	 	0	 	 	306,384	 	 	28,444	 	 	334,828	 	 	0	 	 	334,828	 	
Balance at March 31, 2015	 	2,973,559	 	 	0	 	 	1,787,950	 	 	1	 	 	-114,789	 	 	38,250	 	 	250,601	 	 	-129,804	 	 	4,805,768	 	 	0	 	 	4,805,768	 	

 	

 	
 
  	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:     2015	
CODE: VOLAR	STATEMENT OF CASH FLOWS	 	
 		 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
  	FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014	CONSOLIDATED	
 	 	 	
 	(Thousand of Mexican Pesos)	 	

 	 	 	 	 	Current year	 	 	Previous year	 	
Ref	 	 	Account/Subaccount	 	Amount	 	 	Amount	 	
 	OPERATING ACTIVITIES	 	 	 	 	 	 	 	 	
 	50010000	 	 	(Loss) income before income tax	 	 	437,339	 	 	 	-477,242	 	
 	50020000	 	 	+(-) Items not requiring cash	 	 	-4,160	 	 	 	-14,194	 	
 	50020010	 	 	+ Estimate for the period	 	 	0	 	 	 	0	 	
 	50020020	 	 	+ Provision for the period	 	 	0	 	 	 	0	 	
 	50020030	 	 	+(-) Other unrealized items	 	 	-4,160	 	 	 	-14,194	 	
 	50030000	 	 	+(-) Items related to investing activities	 	 	-7,921	 	 	 	51,412	 	
 	50030010	 	 	Depreciation and amortization for the period	 	 	103,169	 	 	 	57,685	 	
 	50030020	 	 	(-)+ Gain or loss on sale of property, plant and equipment	 	 	-19,972	 	 	 	-2,600	 	
 	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	 	 	-9,191	 	 	 	-4,897	 	
 	50030070	 	 	(-) Foreign exchange fluctuation	 	 	-81,927	 	 	 	-3,673	 	
 	50030080	 	 	(-)+ Other inflows (outflows) of cash	 	 	0	 	 	 	4,897	 	
 	50040000	 	 	+(-) Items related to financing activities	 	 	123,420	 	 	 	12,773	 	
 	50040010	 	 	(+) Accrued interest	 	 	4,289	 	 	 	5,381	 	
 	50040020	 	 	(+) Foreign exchange fluctuation	 	 	0	 	 	 	0	 	
 	50040030	 	 	(+) Financial Instruments	 	 	119,131	 	 	 	7,392	 	
 	50040040	 	 	(-)+ Other inflows (outflows) of cash	 	 	0	 	 	 	0	 	
 	50050000	 	 	Cash flows before income tax	 	 	548,678	 	 	 	-427,251	 	
 	50060000	 	 	Cash flows from used in operating activities	 	 	400,686	 	 	 	341,206	 	
 	50060010	 	 	+(-) Decrease (increase) in trade accounts receivable	 	 	-41,537	 	 	 	-36,444	 	
 	50060020	 	 	+(-) Decrease (increase) in inventories	 	 	1,953	 	 	 	-9,113	 	
 	50060030	 	 	+(-) Decrease (increase) in other accounts receivable	 	 	81,759	 	 	 	-210,797	 	
 	50060040	 	 	+(-) Increase (decrease) in trade accounts payable	 	 	-239,946	 	 	 	-34,969	 	
 	50060050	 	 	+(-) Increase (decrease) in other liabilities	 	 	608,626	 	 	 	637,659	 	
 	50060060	 	 	+(-) Income taxes paid or returned	 	 	-10,169	 	 	 	-5,130	 	
 	50070000	 	 	Net cash flows from (used in) provided by operating activities	 	 	949,364	 	 	 	-86,045	 	
 	Investing activities	 	 	 	 	 	 	 	 	
 	50080000	 	 	Net cash flows from used in investing activities	 	 	-50,546	 	 	 	-227,497	 	
 	50080010	 	 	(-) Permanent investments	 	 	0	 	 	 	0	 	
 	50080020	 	 	+ Disposition of permanent investments	 	 	0	 	 	 	0	 	
 	50080030	 	 	(-) Investment in property, plant and equipment	 	 	-202,537	 	 	 	-366,913	 	
 	50080040	 	 	+ Sale of property, plant and equipment	 	 	157,104	 	 	 	140,979	 	
 	50080050	 	 	(-) Temporary investments	 	 	0	 	 	 	0	 	
 	50080060	 	 	+ Disposition of temporary investments	 	 	0	 	 	 	0	 	
 	50080070	 	 	(-) Investment in intangible assets	 	 	-5,113	 	 	 	-1,563	 	
 	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	 	 	-36,743	 	 	 	98,827	 	
 	50090010	 	 	+ Financial debt	 	 	121,012	 	 	 	239,139	 	
 	50090020	 	 	+ Stock market financing	 	 	0	 	 	 	0	 	
 	50090030	 	 	+ Other financing	 	 	0	 	 	 	0	 	
 	50090040	 	 	(-) Payments of financial debt amortization	 	 	-149,034	 	 	 	-135,083	 	
 	50090050	 	 	(-) Stock market financing amortization	 	 	0	 	 	 	0	 	
 	50090060	 	 	(-) Other financing amortization	 	 	0	 	 	 	0	 	
 	50090070	 	 	+(-) Increase (decrease) in capital stock	 	 	0	 	 	 	0	 	
 	50090080	 	 	(-) Dividends paid	 	 	0	 	 	 	0	 	
 	50090090	 	 	+ Premium on issuance of shares	 	 	0	 	 	 	0	 	
 	50090100	 	 	+ Contributions for future capital increases	 	 	0	 	 	 	0	 	
 	50090110	 	 	(-) Interest expense	 	 	-8,721	 	 	 	-5,229	 	
 	50090120	 	 	(-) Repurchase of shares	 	 	0	 	 	 	0	 	
 	50090130	 	 	(-)+ Other inflows (outflows) of cash	 	 	0	 	 	 	0	 	

 	

 	
 
  	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:     2015	
CODE: VOLAR	STATEMENT OF CASH FLOW S	 	
 		 	
NEW YORK STOCK			
EXCHANGE CODE: VLRS		 	
  	FOR THE THREE MONTHS ENDED MARCH 31, 2015 AND 2014	CONSOLIDATED	
 	 	 	
 	(Thousand of Mexican Pesos)	 	

 	 	 	 	Current year	 	Previous year	
Ref	 	Account/Subaccount	 	Amount	 	Amount	
 	50100000	 	 	Net (decrease) increase in cash and cash equivalents	 	 	862,075	 	 	 	-214,715	 	
 	50110000	 	 	Net foreign exchange differences on the cash balance	 	 	28,918	 	 	 	3,963	 	
 	50120000	 	 	Cash and cash equivalents at beginning of period	 	 	2,264,857	 	 	 	2,450,773	 	
 	50130000	 	 	Cash and cash equivalents at end of period	 	 	3,155,850	 	 	 	2,240,021	 	

 	

 	

 	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.	 	
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:    2015	
CODE: VOLAR		 	
 	FINANCIAL STATEMENT NOTES	PAGE         	
NEW YORK STOCK			
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
 
At March 31, 2015 and December 31, 2014 and for the three months period ended March 31, 2015 and 2014
 
(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 March 31, 2015 have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting .
 
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 for the last full year reported.
 
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 last full year reported.
 
Basis of measurement and presentation
 
The accompanying consolidated financial statements have been prepared under the historical-cost convention, except for derivative financial instruments that are measured at fair value and investments in marketable securities measured at fair value through profit and loss (“FVTPL”).
 
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

At March 31, 2015, except as described in the following paragraph, there were no changes in the significant subsidiaries of the Group.
 
 On January 21, 2015, a new subsidiary of the Company was organized under the corporate name of Servicios Operativos Terrestres Volaris, S. A. de C. V., whose corporate purpose contemplates, among other things, rendering services, as well as contracting and subcontracting any type of personnel who supports land operations for companies that render passenger, cargo, and mail air transportation service in all its areas.

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) Long-term incentive plan and management incentive plan
 
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 in earnings, 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.
 
Share appreciation rights (“SARs”) - cash settled
 
The cost of the SARs plan is measured initially at fair value at the grant date. This fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The liability is remeasured to fair value at each reporting date up to, and including the settlement date, with changes in fair value recognized in salaries and benefits expense together with the grant date fair value.

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 March 31, 2015 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 March 31, 2015, divided by an exchange rate of Ps.15.1542 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 March 31, 2015. 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 investments as defined above.
 
8. Related parties
 
An analysis of balances due to related parties at March 31, 2015 and December 31, 2014 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:
 
 	 	Tipy of transactions	 	Country of origin	 	At March 31, 2015	 	 	At December 31, 2014	 	 	Terms	
Due to:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Aeromantenimimento, S.A.	 	Aircraft and engine maintenance	 	El Salvador	 	Ps.	4,410	 	 	Ps.	559	 	 	30 días	
Human Capital International HCI, S.A. de C.V.	 	Professional fees	 	México	 	 	6	 	 	 	8	 	 	30 días	
 	 	 	 	 	 	Ps.	4,416	 	 	Ps.	567	 	 	 	

 	

 	
 
9. Financial instruments
 
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.
 
Adoption of IFRS 9 (2013)
 
On October 1, 2014 the Company elected 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. This early adoption of IFRS 9 (2013) did not require retrospective adjustments to the Company.
 
Under IFRS 9 (2013), the FVTPL category used under IAS 39 remains permissible, although new categories of financial assets are introduced. These new categories are based on the characteristics of the instruments and the business model under which these are held, to either be measured at fair value or at amortized cost. For financial liabilities, categories provided under IAS 39 are kept. As a result, there was no difference in valuation and recognition of financial assets under IFRS 9 (2013), since those financial assets categorized under IAS 39 as FVTPL remain in that same category under IFRS 9 (2013). In the case of trade receivables, these were not affected in terms of valuation model by this version of IFRS 9 (2013), since they are carried at amortized cost and continued to be accounted as such.
 
Also, the hedge accounting section of IFRS 9 (2013) requires for options that qualify and are formally designated as hedging instruments, to define the intrinsic value of the option as the hedging instrument, thus allowing for the exclusion of changes in fair value attributable to extrinsic value (time value and volatility), to be accounted, under the transaction-related method, separately as a cost of hedging that needs to be initially recognized in OCI and accumulated in a separate component of equity, since the hedged item is a portion of the forecasted jet fuel consumption. The extrinsic value is recognized in income when the hedged item is recognized in the consolidated statements of operations.
 
i) Financial assets
 
Classification of financial assets
 
The Company determines the classification and measurement of financial assets, in accordance with the new categories introduced by IFRS 9 (2013), which are based on both: the characteristics of the contractual cash flows of these assets and the business model objective for holding them.

 	

 	
 
Financial assets include those carried at FVTPL, whose objective to hold them is for trading purposes (short term investments), or at amortized cost, for accounts receivables held to collect the contractual cash flows, which are characterized by solely payments of principal and interest (“SPPI”). Derivative financial instruments are also considered financial assets when these represent contractual rights to receive cash or another financial asset.
 
Initial recognition
 
All the Company’s financial assets are initially recognized at fair value, including derivative financial instruments.
 
Subsequent measurement
 
The subsequent measurement of financial assets depends on their initial classification, as is described below:
 
	1.-	Financial assets at FVTPL which include financial assets held for trading.	
	2.-	Financial assets at amortized cost, whose characteristics meet the SPPI criterion and were originated to be held to collect principal and interest in accordance with the Company’s business model.	
	3.-	Derivative financial instruments are designated for hedging purposes under the cash flow hedge (“CFH”) accounting model and are measured at fair value.	
 
Financial assets carried at amortized cost
 
Accounts receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market which meet the SPPI characteristics and are held to collect their cash flows. Therefore, after initial recognition at fair value, such financial assets are subsequently measured at amortized cost using the Effective Interest Rate (“EIR”) method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the consolidated statements of operations. The losses arising from impairment are recognized in the consolidated statements of operations as sales, marketing and distribution expenses.
 
ii) Financial liabilities
 
Classification of financial liabilities
 
Financial liabilities under IFRS 9 (2013) are classified at amortized cost or at FVTPL.

 	

 	
 
Derivative financial instruments are also considered financial liabilities when these represent contractual obligations to deliver cash or another financial asset.
 
Initial recognition
 
The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value.
 
The Company’s financial liabilities include accounts payable to suppliers, unearned transportation revenue, other accounts payable, financial debt and financial instruments.
 
Subsequent measurement
 
The measurement of financial liabilities depends on their classification as described below:
 
Financial liabilities at amortized cost
 
Accounts payable are subsequently measured at amortized cost and do not bear interest or result in gains and losses due to their short-term nature.
 
After initial recognition at fair value (consideration received), interest bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.
 
Financial liabilities at FVTPL
 
FVTPL include financial liabilities designated upon initial recognition at fair value through profit or loss. Financial liabilities under the fair value option are classified as held for trading, if they are acquired for the purpose of selling them in the near future. This category includes derivative financial instruments that are not designated as hedging instruments in hedge relationships as defined by IFRS 9 (2013).
 
Financial risk management
 
The Company’s activities are exposed to different financial risks derived from exogenous variables which are not under their control but whose effects might be potentially adverse: (i) market risk, (ii) credit risk, and (iii) liquidity risk. The Company’s global risk management program is focused on uncertainty in the financial markets and tries to minimize the potential adverse effects on the net earnings and working capital requirements. The Company uses derivative financial instruments to hedge part of these risks. The Company does not engage derivatives for trading or speculative purposes.
 
The sources of these financial risks exposures are included in both “on balance sheet” exposures, such as recognized financial assets and liabilities, as well as in “off-balance sheet” contractual agreements and on highly expected forecasted transactions. These on and off-balance sheet exposures, depending on their profiles, do represent potential cash flow variability exposure, in terms of receiving less inflows or facing the need to meet outflows which are higher than expected, therefore increase the working capital requirements. Also, since adverse movements also erode the value of recognized financial assets and liabilities, as well some other off-balance sheet financial exposures such as operating leases, there is a need for value preservation, by transforming the profiles of these fair value exposures.
 
The Company has a Finance and Risk Management unit, which identifies and measures financial risk exposures, as well as design strategies to mitigate or transform the profile of certain risk exposures, which are taken up to the Corporate Governance level for approval.

 	

 	
 
10. Derivative financial instruments and hedge accounting
 
The Company mitigates certain financial risks, such as volatility in the price of jet fuel, adverse changes in interest rates and exchange rate fluctuations, through a risk management program that includes the use of derivative financial instruments.
 
In accordance with IFRS 9 (2013), derivative financial instruments are recognized in the consolidated statement of financial position at fair value. At inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting; as well as, the risk management objective and strategy for undertaking the hedge. The documentation includes the hedging strategy and objective, identification of the hedging instrument, the hedged item or transaction, the nature of the risks being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk(s). Only if such hedges are expected to be effective in achieving offsetting changes in fair value or cash flows of the hedge item(s) and are assessed on an ongoing basis to determine that they actually have been effective throughout the financial reporting periods for which they were designated, hedge accounting treatment can be used.
 
Under the CFH accounting model, the effective portion of the hedging instrument´s changes in fair value is recognized in OCI, while the ineffective portion is recognized in current year earnings. At March 31, 2015 and December 31, 2014, there was no ineffectiveness with respect to derivative financial instruments. The amounts recognized in OCI are transferred to earnings in the period in which the hedged transaction affects earnings.
 
The realized gain or loss of derivative financial instruments that qualify as CFH is recorded in the same caption of the hedged item in the consolidated statement of operations.
 
Accounting for the time value of options
 
The Company accounts for the time value of options in accordance with IFRS 9 (2013), which requires all derivative financial instruments to be initially recognized at fair value. Subsequent measurement for options purchased and designated as CFH requires that the option’s changes in fair value be segregated into its intrinsic value (which will be considered the hedging instrument’s effective portion in OCI) and its correspondent changes in extrinsic value (time value and volatility). The extrinsic value changes will be considered as a cost of hedging (recognized in OCI in a separate component of equity) and accounted for in income when the hedged items also is recognized in income.
 
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.
 
11. 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 March 31, 2015, 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 March 31, 2015, 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.

 	

 	

12. 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 March 31,
2015	 	 	At December
31, 2014	 	 	At March 31,
2015	 	 	At December
31, 2014	 	 	At March 31,
2015	 	 	At December 31,
2014	 	
Aircraft parts and rotable spare parts	 	Ps.	252,557	 	 	Ps.	241,190	 	 	Ps. 	( 94,577	) 	 	Ps.	( 89,247	) 	 	Ps. 	157,980	 	 	Ps. 	151,943	 	
Constructions and improvements	 	 	79,788	 	 	 	79,481	 	 	 	(58,150	)	 	 	(55,377	)	 	 	21,638	 	 	 	24,104	 	
Standardization	 	 	97,181	 	 	 	97,181	 	 	 	(55,326	)	 	 	(49,559	)	 	 	41,855	 	 	 	47,622	 	
Computer equipment	 	 	24,454	 	 	 	24,106	 	 	 	(20,816	)	 	 	(20,233	)	 	 	3,638	 	 	 	3,873	 	
Office furniture and equipment	 	 	26,545	 	 	 	27,798	 	 	 	(12,375	)	 	 	(12,056	)	 	 	14,170	 	 	 	15,742	 	
Electric power equipment	 	 	19,457	 	 	 	15,491	 	 	 	(8,709	)	 	 	(8,144	)	 	 	10,748	 	 	 	7,347	 	
Motorized transport equipment plattform	 	 	4,855	 	 	 	4,597	 	 	 	(4,397	)	 	 	(4,358	)	 	 	458	 	 	 	239	 	
Communications equipment	 	 	8,003	 	 	 	8,054	 	 	 	(4,141	)	 	 	(3,981	)	 	 	3,862	 	 	 	4,073	 	
Workshop machinery and equipment	 	 	7,019	 	 	 	6,775	 	 	 	(2,370	)	 	 	(2,197	)	 	 	4,649	 	 	 	4,578	 	
Service carts on board	 	 	5,367	 	 	 	5,367	 	 	 	(3,020	)	 	 	(2,698	)	 	 	2,347	 	 	 	2,669	 	
Pre-delivery payments	 	 	1,391,028	 	 	 	1,396,008	 	 	 	-	 	 	 	-	 	 	 	1,391,028	 	 	 	1,396,008	 	
Workshop tools	 	 	13,964	 	 	 	11,883	 	 	 	(10,302	)	 	 	(9,811	)	 	 	3,662	 	 	 	2,072	 	
Construction and improvements in process	 	 	6,611	 	 	 	4,760	 	 	 	-	 	 	 	-	 	 	 	6,611	 	 	 	4,760	 	
Leasehod improvements to fight equipment	 	 	1,234,945	 	 	 	1,187,914	 	 	 	(706,853	)	 	 	(629,632	)	 	 	528,092	 	 	 	558,282	 	
Total	 	Ps. 	3,171,774	 	 	Ps. 	  3,110,605	 	 	Ps. 	( 981,036	)	 	Ps. 	( 887,293	) 	 	Ps. 	  2,190,738	 	 	Ps. 	  2,223,312	 	
 
b) During the three months period ended March 31, 2015 and for the twelve months period ended December 31, 2014 the Company acquired rotable spare parts, furniture and equipment with a cost of Ps.189,550 and Ps.1,594,310, respectively.
 
c) For the three months period ended March 31, 2015 and for the twelve months period ended December 31, 2014, the Company recorded disposals of rotable, spare parts and furniture by an amount of Ps.132,689 and Ps.400,744.
 
d) Depreciation expense for the three months period ended March 31, 2015 and 2014 was Ps.94,750 and Ps.50,695, respectively.
 
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 three months period ended March 31, 2015 and for the year ended December 31, 2014, the amounts paid for aircraft pre-delivery payments were Ps.121,011 (US$8.1 million) and Ps.906,120 (US$67.6 million), respectively.
 
13. Financial liabilities
 
Financial debt
 
At March 31, 2015 and December 31, 2014, the Company’s short and long-term debt consists of the following:
 
  	 	At March 31,
2015	 	 	At December 31,
2014	 	
 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.	 	 	1,250,802	 	 	 	1,243,192	 	
II.       Accrued interest	 	 	5,373	 	 	 	4,678	 	
 	 	 	1,256,175	 	 	 	1,247,870	 	
Less: Short-term maturities*	 	 	851,427	 	 	 	823,071	 	
Long-term	 	Ps.	404,748	 	 	Ps.	424,799	 	
 
*Includes accrued interest by an amount of Ps.5,373
 
The following table provides a summary of the Company’s principal payments of debt obligations and accrued interest at March 31, 2015:
 
 	 	March 31,
2016	 	 	March 31,
2017	 	 	Total	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreing currency:	 	 	 	 	 	 	 	 	 	 	 	 	
Santander/Bancomext	 	Ps.	851,427	 	 	Ps.	404,748	 	 	Ps.	1,256,175	 	
Total	 	Ps.	851,427	 	 	Ps.	404,748	 	 	Ps.	1,256,175	 	
 
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 March 31, 2015, the Company was in compliance with the covenants under the above-mentioned loan agreements.

 	

 	
 
14. Operating leases
 
At March 31, 2015 and December 31, 2014 the Company’s fleet is comprised as follows:
 
Aircraft
Type	 	Model	 	 	At March 31,
2015	 	 	At December
31, 2014	 	
A319	 	 	132	 	 	 	6	 	 	 	6	 	
A319	 	 	133	 	 	 	12	 	 	 	12	 	
A320	 	 	233	 	 	 	29	 	 	 	28	 	
A320	 	 	232	 	 	 	4	 	 	 	4	 	
 	 	 	 	 	 	 	51	 	 	 	50	 	
 
Te Company will incorporate four A-320 aircraft and two A-321 aircraft to its fleet during 2015 (four of them related to the original purchase agreement with Airbus, S.A.S. (“Airbus”).
 
15. Equity
 
At March 31, 2015, 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 three months period ended March 31, 2015 and for the year ended December 31, 2014 the Company did not declare any dividends.
 
16. 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 three month periods ended March 31, 2015 and 2014 are:
 
 	 	For the three month periods ended
 March 31,	 	
 	 	2015	 	 	2014	 	
Current tax expense	 	Ps.	(332,304)	 	 	Ps.	 (2,260)	 	
Deferred income tax  benefit	 	 	201,349	 	 	 	109,370	 	
Total income tax (expense) benefit on profits	 	Ps.	( 130,955)	 	 	Ps.	107,110	 	
 
17. Commitments and contingencies
 
Aircraft-related commitments and financing arrangements
 
Committed expenditures for aircraft purchase related to pre-delivery payments, will be as follows:
 
 	 	Commitment
expenditures in U.S.
dollars	 	 	Commitment
expenditures equivalent
in Mexican pesos	 	
April - December 2015	 	US$	 37,255	 	 	Ps.	 564,569	 	
2016	 	 	41,547	 	 	 	629,612	 	
2017	 	 	82,275	 	 	 	1,246,812	 	
2018	 	 	119,883	 	 	 	1,816,731	 	
2019	 	 	91,556	 	 	 	1,387,458	 	
2020 and thereafter	 	 	25,691	 	 	 	389,327	 	
 	 	US$	 398,207	 	 	Ps.	 6,034,509	 	
 
Litigation
 
a) The Company, as well as its CEO, CFO, three current directors and our former chairman, are among the defendants in a putative class action commenced on February 24, 2015 in the federal United States District Court for the Southern District of New York brought on behalf of purchasers of ADSs in and/or traceable to the September 2013 initial public offering. The complaint, which also names as defendants the underwriters of the IPO, generally alleges that the registration statement and prospectus for the ADSs contained misstatements and omissions with respect to the Company´s recognition of non-ticket revenue and competitive outlook for certain markets in violation of the federal securities laws, and seeks unspecified damages and rescission. A lead plaintiff for the action has not yet been appointed by the court. The Company believes that the outcome of the proceedings to which we are currently a party will not, individually or in the aggregate, have a material adverse effect in the Company´s consolidated financial statements.

b) 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.

 	

 	
 
18. Operating segments
 
The Company is managed as a single business unit that provides air transportation services. The Company has two geographic segments identified.
 
 	 	Fort the three months period ended	 	
 	 	March 31,	 	
	 	2015	 	 	2014	 	
Revenues:	 	 	 	 	 	 	 	 	
  Domestic (Mexico)	 	Ps.	 2,611,759	 	 	Ps.	            2,010,475	 	
  United States of America	 	 	1,156,471	 	 	 	764,883	 	
Total revenues	 	Ps.	 3,768,230	 	 	Ps.	       2,775,358	 	

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:     01     YEAR:      2015	
CODE: VOLAR	 	 	
 	INVESTMENTS IN ASSOCIATES AND JOINT	 	
NEW YORK STOCK	VENTURES	CONSOLIDATED	
EXCHANGE: VLRS	(THOUSAND OF MEXICAN PESOS)	 	
 
 	 	 	 	 	 	 	 	%	 	 	Total amount	 	
 	 	 	 	 	 	 	 	Owner	 	 		 	 	Current	 	
Company name	 	Principal activity	 	 	Number of shares	 	 	ship	 	 	Acquisition cost	 	 	value	 	
Total investment in associates	 	 		 	 	 		 	 	 		 	 	 	0	 	 	 	0	 	
 
Notes N/A

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK	 	QUARTER:     01     YEAR:      2015	
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 (1)	 	Not	 	27/07/2011	 	01/12/2016	 	 	LIBOR +2.5%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	715,490	 	 	 	130,564	 	 	 	404,748	 	 	 	0	 	 	 	0	 	 	 	0	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total banks	 	 	 	 	 	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	715,490	 	 	 	130,564	 	 	 	404,748	 	 	 	0	 	 	 	0	 	 	 	0	 	

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:    01   YEAR:    2015	
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	 	
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	 	

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:    01     YEAR:      2015	
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)	 	 	Date of
agreement	 	 	Expiration
date	 	 	Current year	 	 	Until 1year	 	 	Until 2 year	 	 	Until 3 year	 	 	Until 4 year	 	 	Until 5 year or more	 	 	Current year	 	 	Until 1year	 	 	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	 	 	 	 	 	 	 	 	 	 	 	52,531	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel	 	Not	 	 	 	 	 	 	 	 	 	 	 	52,211	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Administrative expenses	 	Not	 	 	 	 	 	 	 	 	 	 	 	22,057	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales, marketing and distribution	 	Not	 	 	 	 	 	 	 	 	 	 	 	18,668	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Technology and communication	 	Not	 	 	 	 	 	 	 	 	 	 	 	14,897	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance expenses	 	Not	 	 	 	 	 	 	 	 	 	 	 	10,769	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other services	 	Not	 	 	 	 	 	 	 	 	 	 	 	2,458	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance expenses	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	38,695	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	22,006	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Technology and communication	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,990	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Administrative expenses	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9,105	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales, marketing and distribution	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	320	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other services	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	31	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total suppliers	 	 	 	 	 	 	 	 	 	 	 	 	 	173,591	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	91,147	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other current and non- current liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Others	 	Not	 	 	 	 	 	 	 	 	 	 	 	2,724,394	 	 	 	45,806	 	 	 	76,551	 	 	 	41,990	 	 	 	21,254	 	 	 	22,610	 	 	 	372,237	 	 	 	0	 	 	 	37,542	 	 	 	0	 	 	 	0	 	 	 	0	 	 	
Others	 	Yes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total other current and non- current liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	2,724,394	 	 	 	45,806	 	 	 	76,551	 	 	 	41,990	 	 	 	21,254	 	 	 	22,610	 	 	 	372,237	 	 	 	0	 	 	 	37,542	 	 	 	0	 	 	 	0	 	 	 	0	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General total	 	 	 	 	 	 	 	 	 	 	 	 	 	2,897,985	 	 	 	45,806	 	 	 	76,551	 	 	 	41,990	 	 	 	21,254	 	 	 	22,610	 	 	 	1,178,874	 	 	 	130,564	 	 	 	442,290	 	 	 	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 March 31, 2015.	

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:    01    YEAR:      2015	
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	 	 	 	 	 	Thousands of	 	 	 	 	 	 	 	
(thousands of pesos)	 	dollars	 	 	Thousand pesos	 	 	dollars	 	 	Thousand pesos	 	 	Thousand pesos total	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Assets	 	 	518,393	 	 	 	7,855,826	 	 	 	0	 	 	 	0	 	 	 	7,855,826	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current	 	 	165,395	 	 	 	2,506,429	 	 	 	0	 	 	 	0	 	 	 	2,506,429	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Non current (1)	 	 	352,998	 	 	 	5,349,397	 	 	 	0	 	 	 	0	 	 	 	5,349,397	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities	 	 	115,594	 	 	 	1,751,728	 	 	 	0	 	 	 	0	 	 	 	1,751,728	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Short - term (2)	 	 	86,408	 	 	 	1,309,438	 	 	 	0	 	 	 	0	 	 	 	1,309,438	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Long term	 	 	29,186	 	 	 	442,290	 	 	 	0	 	 	 	0	 	 	 	442,290	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net balance	 	 	402,799	 	 	 	6,104,098	 	 	 	0	 	 	 	0	 	 	 	6,104,098	 	
 
Notes
 
U.S. dollar amounts at March 31, 2015 have been included solely for the convenience of the reader and are translated from Mexican pesos, using an exchange rate of Ps.15.1542 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 March 31, 2015.
 
(1) Include pre-delivery payments, which are recorded as part of property, plant and equipment and therefore are not revaluated.
 
(2) At March 31, 2015, the Company includes in its monetary foreign currency position certain taxes and fees payable by an amount of US$8,864.

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:    01     YEAR:     2015	
CODE: VOLAR	 	 	
 	DEBT INSTRUMENTS	PAGE      1 /  2	
NEW YORK STOCK	 	CONSOLIDATED	
EXCHANGE CODE: VLRS	 	 	

 
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:     01     YEAR:     2015	
CODE: VOLAR	 	 	
 	DEBT INSTRUMENTS	PAGE      2 /  2	
NEW YORK STOCK	 	CONSOLIDATED	
EXCHANGE CODE: VLRS	 	 	

 
ACTUAL SITUATION OF FINANCIAL LIMITED
In compliance

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:     01     YEAR:      2015	
CODE: VOLAR	 	 	
 	DISTRIBUTION OF REVENUE BY PRODUCT	 	
NEW YORK STOCK	 	 	
EXCHANGE CODE: VLRS	 	CONSOLIDATED	
 	TOTAL INCOME	 	
 	(THOUSAND OF MEXICAN PESOS)	 	
 
 	 	Net sales	 	 	 	 	 	Main	 	
Main products or product line	 	Volume	 	 	Amount	 	 	Market share (%)	 	 	Trademarks	 	 	Customers	 	
National income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Domestic (México)	 	 	0	 	 	 	2,611,759	 	 	 	0.00	 	 	 		 	 	 		 	
Export income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
United States of America	 	 	0	 	 	 	1,156,471	 	 	 	0.00	 	 	 	 	 	 	 	 	 	
Income of subsidiaries abroad	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	0	 	 	 	3,768,230	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
Notes

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK EXCHANGE	 	QUARTER:     01     YEAR:     2015	
CODE: VOLAR	 	 	
 	ANALYSIS OF PAID CAPITAL STOCK	 	
NEW YORK STOCK	 	 	
EXCHANGE CODE: VLRS	 	 	
 
 	 	CONSOLIDATED	
 	CHARACTERISTICS OF THE SHARES	 	
 
 	 	 	 	 	 	 	 	Number of shares	 	 	Capital stock	 	
Series	 	Nominal value	 	 	Valid
coupon	 	 	Fixed portion	 	 	Variable portion	 	 	Mexican	 	 	Free subscription	 	 	Fixed	 	 	Variable	 	
A	 	 	0.00000	 	 	 	0	 	 	 	3,224	 	 	 	877,852,982	 	 	 	0	 	 	 	0	 	 	 	9	 	 	 	2,579,714	 	
B	 	 	0.00000	 	 	 	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
 
The figures presented in fixed and variable portion of capital stock are presented in thousands of Mexican pesos.

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,
S.A.B. DE C.V.
 
MEXICAN STOCK	 	QUARTER:    01    YEAR:     2015	
EXCHANGE CODE: VOLAR	 	 	
 	DERIVATIVE FINANCIAL INSTRUMENTS	 	
NEW YORK STOCK	 	 	
EXCHANGE CODE: VLRS	 	 	
 	 	PAGE      1 / 4	
 	 	CONSOLIDATED	

 
Qualitative and quantitative information of the derivatives position of Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries (“Volaris” the “Company”) at March 31, 2015.
 
 	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 derived from exogenous variables that are not under its control, but whose effects can be potentially adverse. 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 only to mitigate part 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 and processes related thereto are approved by diverse Company’s participants in accordance with the Corporate Governance. 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 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 variation risk: The fuel suppliers’ contracts make reference to market prices; therefore, it is exposed to an increase in its price. Volaris contacts derivative financial instruments to hedge against fuel prices increases. 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 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:   01   YEAR:    2015	
EXCHANGE CODE: VOLAR	 	 	 	 	
DERIVATIVE FINANCIAL INSTRUMENTS	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	PAGE	2 / 4	
 	 	 	 	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 March 31, 2015, the Company has in place 9 ISDA agreements and operates through 6 of them.
 
The Company only operates with the financial counterparties, with which it has an ISDA contract. Those contracts have a Credit Support Annex (“CSA”), All of the ISDA agreements have a credit support annex (“CSA”), which 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 designation of calculation agents is documented in the ISDA contracts under which Volaris operates. 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). At the date of filing this report, all the Company's financial derivative instruments are considered effective and, therefore, they are classified to be recorded under hedge accounting assumptions.

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	
S.A.B. DE C.V.	
MEXICAN STOCK	 	QUARTER:   01   YEAR:   2015	
EXCHANGE CODE: VOLAR	 	 	 	 	
DERIVATIVE FINANCIAL INSTRUMENTS	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	PAGE	3 / 4	
 	 	 	 	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 Company only operates with financial counterparties with which it has an ISDA contract. Those contracts have a Credit Support Annex ("CSA"), which set forth credit conditions that stipulate credit lines and guidelines for margin calls, such as minimum amounts and rounding off. Contracting derivative financial instruments is distributed among the different counterparties with the intent to avoid that its exposure falls on a single counterparty, thereby making the use of the financial conditions of the different CSA more efficient. Moreover, the Company has internal recourses to meet the requirements 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 first quarter of 2015 no significant changes were identified that can modify exposure to the risks described above, a situation that may change in the future.

 	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.

 	

 	
 
CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN,	
S.A.B. DE C.V.	
MEXICAN STOCK	 	QUARTER:   01   YEAR:   2015	
EXCHANGE CODE: VOLAR	 	 	 	 	
DERIVATIVE FINANCIAL INSTRUMENTS	
NEW YORK STOCK	 	 	 	 	 	
EXCHANGECODE: VLRS	 	 	 	 	 	
 	 	 	 	PAGE	4 / 4	
 	 	 	 	CONSOLIDATED	

Derivative financial instruments summary
At March 31 st , 2015
(Amounts in thousands Mexican pesos)

 	 	 	 	 	 	 	 	Underlying asset value	 	Fair Value (4)	 	 	 	 	
Instrument	 	Hedging or other purposes	 	Notional amount / Nominal Value	 	Position	 	Underlying asset	 	Current quarter (1Q15)	 	Previous quarter  (4Q14)	 	Current quarter (1Q15)	 	Previous quarter (4Q14)	 	Maturity	 	Collateral (5)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest swaps (1) 	 	Hedge 	 	USD $70.0M 	 	Long 	 	6M libor 	 	0.40% 	 	0.36% 	 	-80,926 	 	-83,496 	 	Short-term: 
-43,384	 	4,244 	
	 		 		 		 		 		 		 		 		 	Long-term: 
-37,542	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel Asian swaps (2)	 	Hedge	 	2.0M gallons	 	Long	 	Jet Fuel GC 54	 	USD $1.57 / Gal	 	USD $1.65 / Gal	 	-48,746*	 	-169,623*	 	Short-term: 
-48,746	 	-	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel Asian call options (3) 	 	Hedge 	 	102.2M gallons 	 	Long 	 	Jet Fuel GC 54 	 	USD $1.57 / Gal 	 	USD $1.65 / Gal 	 	138,641 	 	68,133 	 	Short-term: 
55,753	 	- 	
	 		 		 		 		 		 		 		 		 	Long-term: 
82,888	 		

 
*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 one counterparty.	

 	(2)	8 derivative financial instruments allocated with 3 counterparties.	

 	(3)	129 derivative financial instruments allocated with 2 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 EXCHANGE	 	QUARTER:    01     YEAR:     2015	
CODE: VOLAR	 	 	
 	 	 	
NEW YORK STOCK	 	 	
EXCHANGE CODE: VLRS	 	 	
 	NOTES TO FINANCIAL STATEMENTS	 	
 	 	CONSOLIDATED	

 
11040000: At March 31, 2015 and December 31, 2014, this item is comprised mainly of recoverable taxes and other minor receivables.
 
The tax recoverable balances at March 31, 2015 and December 31, 2014 amount to Ps.69,820 and Ps.234,457, respectively.
 
11060060: At March 31, 2015 and December 31, 2014, this item is comprised mainly of maintenance deposits for flight equipment paid to lessors (maintenance reserves), by an amount of Ps. 549,273 and Ps.505,744, respectively.
 
12030030: At March 31, 2015 and December 31, 2014, this item is comprised mainly of: i) flight equipment improvements (capitalized maintenance) by an amount of Ps.1,234,945 and Ps. Ps.1,187,914, respectively; ii) rotable spare parts amounting to Ps.252,557 and Ps.241,190, respectively, and iii) other minor assets.
 
12030050: At March 31,2015 and December 31, 2014, this item is comprised mainly of pre-delivery payments for aircraft acquisitions in the amount of Ps.1,391,028 and Ps.1,396,008, respectively, and other minor assets.
 
12060040: At March 31, 2015 and December 31, 2014, the software is presented in this item.
 
12080050: At March 31, 2015, this item mainly includes maintenance deposits (maintenance reserves) and security deposits for flight equipment paid to lessors in the amount of Ps.3,125,749 and Ps.568,042, respectively.
 
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.
 
21050020: At March 31, 2015 and December 31, 2014, in this reference are presented certain taxes rights and tariffs, which are charged to the passengers on behalf of governmental entities and airports. The Company paid these taxes, rights and tariffs to those entities periodically.
 
21060080: At March 31, 2015, this item is comprised of other accrued liabilities and liabilities contracted with related parties in the amount of Ps.1,069,899 and Ps.4,416, respectively.
 
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.
 
30050000: At March 31, 2015 and December 31, 2014, the long term incentive plan cost is presented in this item.
 
30070000: At March 31, 2015 and December 31, 2014, the treasury shares value is presented exclusively in this item.

 

 	

 
Volaris Reports Strong First Quarter 2015: 32% Adjusted EBITDAR Margin, 9% Operating Margin
 
Mexico City, Mexico, April 22, 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 first quarter 2015.
 
The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS).
 
First Quarter 2015 Highlights
 
	<	Total operating revenues were Ps.3,768 million for the first quarter, an increase of 35.8% year over year.	
 
	<	Non-ticket revenues increased 64.6% for the first quarter year over year. Non-ticket revenue per passenger increased 41.6%, reaching Ps.337 (US$22) for the first quarter.	
 
	<	Total operating revenue per available seat mile (TRASM) increased to Ps.123.8 cents for the first quarter, an increase of 22.4% year over year.	
 
	<	Operating expenses per available seat mile (CASM) decreased 5.5% for the first quarter year over year, to Ps.112.5 cents (US$7.4 cents). CASM expressed in US cents decreased 18.4% for the first quarter year over year.	
 
	<	Adjusted EBITDAR for the first quarter was Ps.1,204 million, a Ps.1 billion increase year over year with an Adjusted EBITDAR margin of 32.0%, a margin increase of 26.1 percentage points.	
 
	<	EBIT reached Ps.346 million with an operating margin of 9.2% for the first quarter, a margin improvement of 26.8 percentage points.	
 
	<	Net income was Ps.306 million (Ps.0.30 per share / US$0.20 per ADS) with a net margin of 8.1% for the first quarter, a net margin improvement of 21.4 percentage points. 	
 
	<	During the first quarter the net increase of cash and cash equivalents was Ps.862 million mainly driven by the resources provided by operating activities of Ps.949 million. Unrestricted cash and cash equivalents was Ps.3,156 million (US$208 million), representing 21% of the last twelve month total revenues.	
 
Volaris´ CEO Enrique Beltranena commented: “Volaris' strong performance for the first three months of 2015 are evidence of the hard work and excellent execution to improve financial performance following a very challenging year. We continue to diversify our network and strengthen our unbundled product strategy, increasing our international presence and growing non-ticket revenues while maintaining cost discipline. We are committed to continue building solid foundations towards a strong and profitable 2015”.
 
Improving Macroeconomic Environment
 
	<	The Mexican macroeconomic environment:	
	o	GDP growth for the full year 2014 was 2.1%.	

	*Controladora Vuela Compañía de Aviación, S.A.B. de C.V.	1 	

 	

 

	o	Consumer confidence increased 7.8%, 6.8% and 4.8% year over year in January, February and March of 2015, respectively.	
	o	The Mexican General Economic Activity Indicator (IGAE) increased 2.0% year over year in January of 2015.	
 
	<	Exchange rate volatility: The Mexican peso depreciated 12.8% year over year against the US dollar, as the exchange rate devalued from an average of Ps.13.23 pesos per US dollar in the first quarter of 2014 to Ps.14.93 pesos per US dollar during the first quarter of 2015.	
 
	<	Lower fuel prices: The average economic fuel cost per gallon decreased 27.1% year over year in the first quarter of 2015, reaching Ps.29.7 (US$1.96) per gallon.	
 
Focus on Network Diversification and Revenue Management Results in Unit Revenue Improvement
 
	<	Unit revenue improvement and capacity management: TRASM and yield increased 22.4% and 17.5% for the first quarter year over year, respectively, as a result of a recuperating domestic fare environment and solid international fare environment. Domestic capacity increased 4.0%, reflecting capacity discipline and supporting yield recovery, while international capacity increased 31.4%.	
 
	<	Non-ticket revenue growth: Non-ticket revenues per passenger increased 41.6% year over year for the first quarter as Volaris continues to observe a customer acceptance of its ancillary revenue strategy. This growth is mainly driven by improved ancillary bundles and revenue management of bag and seat fees, as well as new product offerings.	
 
	<	Air traffic volume increase: The Mexican DGAC   reported an overall passenger increase for Mexican carriers of 9.2% for January and February 2015. Volaris’ market share among Mexican carriers increased to 23.9% in both domestic and international markets, the second largest share among them.	
 
	<	New routes launch: In the first quarter, Volaris opened five routes (four domestic and one international), focusing on its VFR customer base, both in the domestic and the Mexico-US cross-border market.	
 
First Quarter Operating Revenues: Managing Capacity for Profitability Results in Solid Traffic and Revenue Indicators
 
Volaris booked 2.5 million passengers in the first quarter 2015, a 16.2% year over year growth rate. Volaris traffic (measured in terms of revenue passenger miles, or RPMs) increased 10.0%.
 
Volaris’ total operating revenues were Ps.3,768 million in the first quarter, an increase of 35.8% year over year. Non-ticket revenues and non-ticket revenue per passenger reached Ps.846 million and Ps.337 (US$22), respectively. Non-ticket revenues per passenger increased 41.6%.

	Controladora Vuela Compañía de Aviación, S.A.B. de C.V.	2 	

 	

 
Maintaining Cost Discipline: Fuel Savings Combined With Other Efficiencies
 
CASM for the first quarter 2015 was Ps.112.5 cents (US$7.4 cents), a 5.5% decrease compared to the first quarter of 2014, mainly driven by a lower fuel price per gallon and efficiencies achieved in landing, take-off and navigation expenses, salaries and benefits. On a US dollar basis, CASM in the first quarter decreased 18.4% compared to the same period in 2014.
 
In the first quarter, Volaris experienced pressures in US-dollar denominated costs such as aircraft rents, international airport costs, and maintenance expenses due to the exchange rate depreciation of the Mexican peso.
 
Young and Fuel Efficient Fleet
 
As of March 31, 2015, the Company´s fleet was comprised of 51 aircraft (33 A320s and 18 A319s), with an average age of 4.5 years. Volaris expects to end 2015 with 55 aircraft, including our first two A321s which will be entering the fleet during the second quarter of the year.
 
Positive Cash Flow Generation, Strong Balance Sheet and Good Liquidity
 
During the first quarter the net increase of cash and cash equivalents was Ps.862 million mainly driven by the resources provided by operating activities of Ps.949 million.
 
As of March 31, 2015, Volaris had a record balance of Ps.3,156 million in unrestricted cash and cash equivalents, representing 21% of the last twelve month operating revenues. Volaris recorded negative net debt (or a positive net cash position) of Ps.1,900 million and total equity reached Ps.4,806 million.
 
During the first quarter of 2015, Volaris incurred capital expenditures of Ps.50 million, which included acquisitions of rotable spare parts, furniture and equipment of Ps.61 million, partially offset by reimbursements of net pre-delivery payments of Ps.11 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 first quarter Volaris hedged 29% of fuel consumption at an average price of US$2.53 per gallon, which combined with the 71% unhedged consumption, resulted in a blended average economic fuel cost of US$1.96 per gallon for the quarter.

Investors are urged to carefully read the Company's periodic r eports filed with or furnished to the Securities and Exchange Commission, for additional information regarding the Company.

	Controladora Vuela Compañía de Aviación, S.A.B. de C.V.	3 	

 	

 
Analyst Coverage
Firm	 	Analyst	
Barclays	 	Benjamin M. Theurer	
Citi	 	Stephen Trent	
Cowen Securities	 	Helane Becker	
Deutsche Bank	 	Michael Linenberg	
Evercore Partners	 	Duane Pfennigwerth	
Imperial Capital	 	Bob McAdoo	
Itaù Unibanco	 	Renato Salomone	
Morgan Stanley	 	Ricardo Alves	
Santander	 	Ana Gabriela Reynal	
UBS	 	Rodrigo Fernandes	

Conference Call/Webcast Details:
Volaris will conduct a conference call to discuss these results on April 22, 2015, at 12:00 p.m. EDT. A live audio webcast of the conference call will be available to the public on a list en-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 135 and its fleet from four to 51 aircraft. Volaris offers more than 230 daily flight segments on routes that connect 38 cities in Mexico and 21 cities in the United States and Central America 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 Compañía de Aviación, S.A.B. de C.V.	4 	

 	

 

 
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 March 31,
2015
(US Dollars)*	 	 	Three months 
ended March 31,
2015	 	 	Three months 
ended March 31,
2014	 	 	Variance 
(%)	 	
Total operating revenues (millions)	 	 	249	 	 	 	3,768	 	 	 	2,775	 	 	 	35.8	%	
Total operating expenses (millions)	 	 	226	 	 	 	3,422	 	 	 	3,263	 	 	 	4.9	%	
EBIT (millions)	 	 	23	 	 	 	346	 	 	 	-488	 	 	 	NA	 	
EBIT margin	 	 	9.2	%	 	 	9.2	%	 	 	-17.6	%	 	 	 26.8	pp 	
Adjusted EBITDA (millions)	 	 	30	 	 	 	449	 	 	 	-430	 	 	 	NA	 	
Adjusted EBITDA margin	 	 	11.9	%	 	 	11.9	%	 	 	-15.50	%	 	 	 27.4	pp	
Adjusted EBITDAR (millions)	 	 	79	 	 	 	1,204	 	 	 	162	 	 	 	>100	%	
Adjusted EBITDAR margin	 	 	32.0	%	 	 	32.0	%	 	 	5.9	%	 	 	 26.1	pp	
Net  income (loss) (millions)	 	 	20	 	 	 	306	 	 	 	-370	 	 	 	NA	 	
Net margin	 	 	8.1	%	 	 	8.1	%	 	 	-13.30	%	 	 	 21.4	pp	
Earnings (loss) per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.02	 	 	 	0.30	 	 	 	-0.37	 	 	 	NA	 	
Diluted	 	 	0.02	 	 	 	0.30	 	 	 	-0.37	 	 	 	NA	 	
Earnings (loss) per ADS:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	0.20	 	 	 	3.03	 	 	 	-3.66	 	 	 	NA	 	
Diluted	 	 	0.20	 	 	 	3.03	 	 	 	-3.66	 	 	 	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) (1)	 	 	-	 	 	 	3,043	 	 	 	2,742	 	 	 	11.0	%	
    Domestic	 	 	-	 	 	 	2,126	 	 	 	2,044	 	 	 	4.0	%	
    International	 	 	-	 	 	 	917	 	 	 	698	 	 	 	31.4	%	
Revenue passenger miles (RPMs) (millions) (1)	 	 	-	 	 	 	2,435	 	 	 	2,214	 	 	 	10.0	%	
    Domestic	 	 	-	 	 	 	1,719	 	 	 	1,639	 	 	 	4.9	%	
    International	 	 	-	 	 	 	716	 	 	 	575	 	 	 	24.5	%	
Load factor	 	 	-	 	 	 	80.0	%	 	 	80.7	%	 	 	(0.7	)pp	
    Domestic	 	 	-	 	 	 	80.9	%	 	 	80.2	%	 	 	0.7	pp	
    International	 	 	-	 	 	 	78.0	%	 	 	82.4	%	 	 	(4.4	)pp	
Total operating revenue per ASM (TRASM) (cents)	 	 	8.2	 	 	 	123.8	 	 	 	101.2	 	 	 	22.4	%	
Passenger revenue per ASM (RASM) (cents)	 	 	6.3	 	 	 	96.0	 	 	 	82.5	 	 	 	16.5	%	
Passenger revenue per RPM (Yield) (cents)	 	 	7.9	 	 	 	120.0	 	 	 	102.1	 	 	 	17.5	%	
Average fare	 	 	76.9	 	 	 	1,165	 	 	 	1,046	 	 	 	11.3	%	
Non-ticket revenue per passenger	 	 	22.2	 	 	 	337	 	 	 	238	 	 	 	41.6	%	
Non-ticket revenue excluding cargo per passenger	 	 	21.0	 	 	 	319	 	 	 	208	 	 	 	52.9	%	
Operating expenses per ASM (CASM) (cents)	 	 	7.4	 	 	 	112.5	 	 	 	119.0	 	 	 	-5.5	%	
Operating expenses per ASM (CASM) ( US cents)	 	 	-	 	 	 	7.4	 	 	 	9.1	**	 	 	-18.4	%	
CASM ex fuel (cents)	 	 	5.1	 	 	 	77.9	 	 	 	72.1	 	 	 	8.1	%	
CASM ex fuel (US cents)	 	 	-	 	 	 	5.1	 	 	 	5.5	**	 	 	-6.7	%	
Booked passengers (thousands)	 	 	-	 	 	 	2,511	 	 	 	2,161	 	 	 	16.2	%	
Departures	 	 	-	 	 	 	19,313	 	 	 	16,823	 	 	 	14.8	%	
Block hours	 	 	-	 	 	 	50,695	 	 	 	45,250	 	 	 	12.0	%	
Fuel gallons consumed (millions)	 	 	-	 	 	 	35.4	 	 	 	31.6	 	 	 	12.0	%	
Average economic fuel cost per gallon	 	 	1.96	 	 	 	29.7	 	 	 	40.8	 	 	 	-27.1	%	
Aircraft at end of period	 	 	-	 	 	 	51	 	 	 	46	 	 	 	10.9	%	
Average aircraft utilization (block hours)	 	 	-	 	 	 	12.1	 	 	 	12.4	 	 	 	-2.8	%	
Average exchange rate	 	 	-	 	 	 	14.93	 	 	 	13.23	 	 	 	12.8	%	
 
*Convenience translation to period-end U.S. dollars (Ps.15.1542). **Convenience translation to period-end U.S. dollars (Ps.13.0837)
 
(1) Includes schedule + charter

	Controladora Vuela Compañía de Aviación, S.A.B. de C.V.	5 	

 	

 
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 March
31, 2015
(US Dollars)*	 	 	Three months 
ended March
31, 2015	 	 	Three months 
ended March
31, 2014	 	 	Variance 
(%)	 	
Operating revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Passenger	 	 	193	 	 	 	2,922	 	 	 	2,261	 	 	 	29.2	%	
Non-ticket	 	 	56	 	 	 	846	 	 	 	514	 	 	 	64.6	%	
 	 	 	249	 	 	 	3,768	 	 	 	2,775	 	 	 	35.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other operating income	 	 	-2	 	 	 	-23	 	 	 	-4	 	 	 	>100	% 	
Fuel	 	 	69	 	 	 	1,051	 	 	 	1,287	 	 	 	-18.3	%	
Aircraft and engine rent expense	 	 	50	 	 	 	755	 	 	 	593	 	 	 	27.4	%	
Landing, take-off and navigation expenses	 	 	38	 	 	 	574	 	 	 	520	 	 	 	10.4	%	
Salaries and benefits	 	 	28	 	 	 	424	 	 	 	389	 	 	 	9.0	%	
Sales, marketing and distribution expenses	 	 	14	 	 	 	216	 	 	 	158	 	 	 	36.8	%	
Maintenance expenses	 	 	12	 	 	 	181	 	 	 	159	 	 	 	14.4	%	
Other operating expenses	 	 	9	 	 	 	142	 	 	 	105	 	 	 	35.4	%	
Depreciation and amortization	 	 	7	 	 	 	103	 	 	 	58	 	 	 	78.8	%	
Operating expenses	 	 	226	 	 	 	3,422	 	 	 	3,263	 	 	 	4.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	 	 	23	 	 	 	346	 	 	 	-488	 	 	 	NA	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Finance income	 	 	1	 	 	 	9	 	 	 	5	 	 	 	87.7	%	
Finance cost	 	 	-	 	 	 	-4	 	 	 	-5	 	 	 	-20.3	%	
Exchange gain, net	 	 	6	 	 	 	86	 	 	 	11	 	 	 	>100	% 	
Comprehensive financing result	 	 	6	 	 	 	91	 	 	 	11	 	 	 	>100	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income tax	 	 	29	 	 	 	437	 	 	 	-477	 	 	 	NA	 	
Income tax (expense) benefit	 	 	-9	 	 	 	-131	 	 	 	107	 	 	 	NA	 	
Net income (loss)	 	 	20	 	 	 	306	 	 	 	-370	 	 	 	NA	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Attribution of net income (loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity holders of the parent	 	 	20	 	 	 	306	 	 	 	-370	 	 	 	NA	 	
Non-controlling interest	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Net income (loss)	 	 	20	 	 	 	306	 	 	 	-370	 	 	 	NA	 	
 
*Convenience translation to period-end U.S. dollars (Ps.15.1542)

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Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Statement of Financial Position
 
(In millions of Mexican pesos)	 	As of
March 31, 2015
Unaudited
(US Dollars)*	 	 	As of
March 31, 2015
Unaudited	 	 	As of
December 31,
 2014 Audited	 	
Assets	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	208	 	 	 	3,156	 	 	 	2,265	 	
Accounts receivable	 	 	19	 	 	 	286	 	 	 	449	 	
Inventories	 	 	9	 	 	 	138	 	 	 	140	 	
Prepaid expenses and other current assets	 	 	16	 	 	 	247	 	 	 	228	 	
Financial instruments	 	 	4	 	 	 	56	 	 	 	63	 	
Guarantee deposits	 	 	38	 	 	 	582	 	 	 	545	 	
Total current assets	 	 	295	 	 	 	4,465	 	 	 	3,689	 	
Rotable spare parts, furniture and equipment, net	 	 	145	 	 	 	2,191	 	 	 	2,223	 	
Intangible assets, net	 	 	5	 	 	 	69	 	 	 	73	 	
Financial instruments	 	 	5	 	 	 	83	 	 	 	5	 	
Deferred income tax	 	 	34	 	 	 	522	 	 	 	328	 	
Guarantee deposits	 	 	245	 	 	 	3,709	 	 	 	3,541	 	
Other assets	 	 	3	 	 	 	46	 	 	 	46	 	
Total assets	 	 	731	 	 	 	11,085	 	 	 	9,905	 	
Liabilities	 	 	 	 	 	 	 	 	 	 	 	 	
Unearned transportation revenue	 	 	129	 	 	 	1,960	 	 	 	1,421	 	
Accounts payable	 	 	18	 	 	 	269	 	 	 	506	 	
Accrued liabilities	 	 	71	 	 	 	1,070	 	 	 	1,122	 	
Taxes and fees payable	 	 	92	 	 	 	1,390	 	 	 	677	 	
Financial instruments	 	 	6	 	 	 	92	 	 	 	211	 	
Financial debt	 	 	56	 	 	 	851	 	 	 	823	 	
Other liabilities	 	 	1	 	 	 	11	 	 	 	9	 	
Total short-term liabilities	 	 	372	 	 	 	5,643	 	 	 	4,768	 	
Financial instruments	 	 	2	 	 	 	38	 	 	 	42	 	
Financial debt	 	 	27	 	 	 	405	 	 	 	425	 	
Accrued liabilities	 	 	9	 	 	 	130	 	 	 	144	 	
Other liabilities	 	 	2	 	 	 	24	 	 	 	21	 	
Employee benefits	 	 	1	 	 	 	8	 	 	 	8	 	
Deferred income taxes	 	 	2	 	 	 	31	 	 	 	27	 	
Total liabilities	 	 	414	 	 	 	6,279	 	 	 	5,435	 	
Equity	 	 	 	 	 	 	 	 	 	 	 	 	
Capital stock	 	 	196	 	 	 	2,974	 	 	 	2,974	 	
Treasury shares	 	 	-8	 	 	 	-115	 	 	 	-115	 	
Contributions for future capital increases	 	 	-	 	 	 	-	 	 	 	-	 	
Legal reserve	 	 	3	 	 	 	38	 	 	 	38	 	
Additional paid-in capital	 	 	118	 	 	 	1,788	 	 	 	1,787	 	
Accumulated losses	 	 	17	 	 	 	251	 	 	 	-56	 	
Accumulated other comprehensive losses	 	 	-9	 	 	 	-130	 	 	 	-158	 	
Total equity	 	 	317	 	 	 	4,806	 	 	 	4,470	 	
Total liabilities and equity	 	 	731	 	 	 	11,085	 	 	 	9,905	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total shares outstanding fully diluted	 	 	 	 	 	 	1,011,876,677	 	 	 	1,011,876,677	 	
 
*Convenience translation to period-end U.S. dollars (Ps.15.1542)

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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 March
31, 2015
(US Dollars)*	 	 	Three months
ended March
31, 2015	 	 	Three months
ended
March 31,
2014	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash flow provided by (used in) operating activities	 	 	63	 	 	 	949	 	 	 	-86	 	
Net cash flow used in investing activities	 	 	-3	 	 	 	-51	 	 	 	-227	 	
Net cash flow (used in) provided by financing activities	 	 	-2	 	 	 	-37	 	 	 	99	 	
Increase (decrease) in cash and cash equivalents	 	 	57	 	 	 	862	 	 	 	-215	 	
Net foreign exchange differences	 	 	2	 	 	 	29	 	 	 	4	 	
Cash and cash equivalents at beginning of period	 	 	149	 	 	 	2,265	 	 	 	2,451	 	
Cash and cash equivalents at end of period	 	 	208	 	 	 	3,156	 	 	 	2,240	 	
 
*Convenience translation to period-end U.S. dollars (Ps.15.1542)

	Controladora Vuela Compañía de Aviación, S.A.B. de C.V.	8