Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) 20-F 26 Apr 19 2018 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2018shares
IFRS Statement [Line Items]
Entity Registrant Name	Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Entity Central Index Key	0001520504
Document Type	20-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Shell Company	false
Ordinary Participation Certificates
IFRS Statement [Line Items]
Entity Common Stock, Shares Outstanding	810,853,707
Series A shares
IFRS Statement [Line Items]
Entity Common Stock, Shares Outstanding	923,824,804

Consolidated Statements of Fina

Consolidated Statements of Financial Position $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Current assets:
Cash and cash equivalents	$ 297,870	$ 5,862,942	$ 6,950,879	$ 7,071,251
Accounts receivable:
Related parties	420	8,266
Other accounts receivable	25,834	508,479	478,467	427,403
Recoverable value added tax and others	31,100	612,146	400,464	342,348
Recoverable income tax	17,162	337,799	570,361	192,967
Inventories	15,103	297,271	294,850	243,884
Prepaid expenses and other current assets	36,059	709,750	767,713	1,562,526
Financial instruments	3,172	62,440	497,403	543,528
Guarantee deposits	40,169	790,635	1,352,893	1,167,209
Total current assets	466,889	9,189,728	11,313,030	11,551,116
Non-current assets:
Rotable spare parts, furniture and equipment, net	293,772	5,782,282	4,375,697	2,525,008
Intangible assets, net	9,100	179,124	190,420	114,041
Financial instruments				324,281
Deferred income taxes	30,143	593,302	562,445	559,083
Guarantee deposits	321,980	6,337,496	6,098,252	6,559,878
Other assets	7,863	154,757	126,423	148,364
Other long-term assets	3,757	73,962
Total non-current assets	666,615	13,120,923	11,353,237	10,230,655
Total assets	1,133,504	22,310,651	22,666,267	21,781,771
Short-term liabilities:
Unearned transportation revenue	123,890	2,438,516	2,293,309	2,228,051
Suppliers	55,149	1,085,499	1,077,438	861,805
Related parties	903	17,775	40,931	65,022
Accrued liabilities	117,787	2,318,392	2,050,973	1,785,439
Other taxes and fees payable	98,160	1,932,082	1,245,247	1,476,242
Income taxes payable	207	4,065	111,292	196,242
Financial instruments	6,246	122,948		14,144
Financial debt	61,590	1,212,259	2,403,562	1,051,237
Other liabilities	5,981	117,724	280,744	284,200
Total short-term liabilities	469,913	9,249,260	9,503,496	7,962,382
Long-term liabilities:
Financial debt	117,409	2,310,939	1,079,152	943,046
Accrued liabilities	6,972	137,233	199,848	169,808
Other liabilities	16,661	327,934	216,702	136,555
Employee benefits	922	18,153	19,289	13,438
Deferred income taxes	55,655	1,095,452	1,616,282	1,836,950
Total long-term liabilities	197,619	3,889,711	3,131,273	3,099,797
Total liabilities	667,532	13,138,971	12,634,769	11,062,179
Equity:
Capital stock	151,073	2,973,559	2,973,559	2,973,559
Treasury shares	(6,232)	(122,661)	(85,034)	(83,365)
Contributions for future capital increases		1	1	1
Legal reserve	14,794	291,178	291,178	38,250
Additional paid-in capital	93,333	1,837,073	1,804,528	1,800,613
Retained earnings	216,730	4,265,876	4,948,376	5,853,092
Accumulated other comprehensive income	(3,726)	(73,346)	98,890	137,442
Total equity	465,972	9,171,680	10,031,498	10,719,592
Total liabilities and equity	$ 1,133,504	$ 22,310,651	$ 22,666,267	$ 21,781,771

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical)	Apr. 25, 2019$ / $	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017$ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Consolidated Statements of Financial Position
Convenience translation to U.S. dollars	18.9578	19.6829	7.7440	609.6100	19.7354	7.3448	572.5600	20.6640	7.5221	561.1000

Consolidated Statements of Oper

Consolidated Statements of Operations $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)$ / shares	Dec. 31, 2018MXN ($)$ / shares	Dec. 31, 2017MXN ($)$ / shares	Dec. 31, 2016MXN ($)$ / shares
Operating revenues:
Fare revenues	$ 939,285	$ 18,487,858	$ 17,791,317	$ 17,790,130
Other passenger revenues	400,982	7,892,497	6,098,504	4,919,452
Passenger revenues	1,340,267	26,380,355	23,889,821	22,709,582
Other non-passenger services	35,430	697,357	727,392	590,355
Cargo	11,555	227,438	170,973	171,623
Operating revenues	1,387,252	27,305,150	24,788,186	23,471,560
Other operating income	(31,600)	(621,973)	(96,765)	(496,742)
Fuel	514,913	10,134,982	7,255,636	5,741,403
Aircraft and engine rent expenses	320,833	6,314,930	6,072,502	5,590,058
Landing, take-off and navigation expenses	232,840	4,582,967	4,009,915	3,272,051
Salaries and benefits	158,787	3,125,393	2,823,647	2,419,537
Sales, marketing and distribution expenses	76,269	1,501,203	1,691,524	1,413,348
Maintenance expenses	77,104	1,517,626	1,433,147	1,344,110
Other operating expenses	57,406	1,129,911	1,088,440	952,452
Depreciation and amortization	25,435	500,641	548,687	536,543
Operating (loss) income	(44,735)	(880,530)	(38,547)	2,698,800
Finance income	7,753	152,603	105,795	102,591
Finance cost	(6,114)	(120,334)	(86,357)	(35,116)
Foreign exchange (loss) gain, net	(3,682)	(72,475)	(793,854)	2,169,505
(Loss) income before income tax	(46,778)	(920,736)	(812,963)	4,935,780
Income tax benefit (expense)	12,104	238,236	161,175	(1,457,182)
Net (loss) income	$ (34,674)	$ (682,500)	$ (651,788)	$ 3,478,598
(Loss) Earnings per share basic: | (per share)	$ (0.034)	$ (0.674)	$ (0.644)	$ 3.438
(Loss) Earnings per share diluted: | (per share)	$ (0.034)	$ (0.674)	$ (0.644)	$ 3.438

Consolidated Statements of Op_2

Consolidated Statements of Operations (Parenthetical)	Apr. 25, 2019$ / $	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017$ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Consolidated Statements of Operations
Convenience translation to U.S. dollars	18.9578	19.6829	7.7440	609.6100	19.7354	7.3448	572.5600	20.6640	7.5221	561.1000

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Consolidated Statements of Comprehensive Income
Net (loss) income for the year	$ (34,674)	$ (682,500)	$ (651,788)	$ 3,478,598
Other comprehensive (loss) income to be reclassified to profit or loss in subsequent periods:
Net (loss) gain on cash flow hedges	(14,413)	(283,691)	(42,148)	624,694
Income tax effect	4,324	85,107	12,017	(187,408)
Exchange differences on translation of foreign operations	1,126	22,156	(7,178)	(4,756)
Other comprehensive (loss) income not to be reclassified to profit or loss in subsequent periods:
Remeasurement gain (loss) of employee benefits	304	5,989	(1,776)	(442)
Income tax effect	(91)	(1,797)	533	132
Other comprehensive (loss) income for the year, net of tax	(8,750)	(172,236)	(38,552)	432,220
Total comprehensive (loss) income for the year, net of tax	$ (43,424)	$ (854,736)	$ (690,340)	$ 3,910,818

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical)	Apr. 25, 2019$ / $	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017$ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Consolidated Statements of Comprehensive Income
Convenience translation to U.S. dollars	18.9578	19.6829	7.7440	609.6100	19.7354	7.3448	572.5600	20.6640	7.5221	561.1000

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity $ in Thousands, $ in Thousands	Capital stockUSD ($)	Capital stockMXN ($)	Treasury sharesUSD ($)	Treasury sharesMXN ($)	Contribution for future capital increasesMXN ($)	Legal ReserveUSD ($)	Legal ReserveMXN ($)	Additional paid-in capitalUSD ($)	Additional paid-in capitalMXN ($)	Retained earnings (Accumulated losses)USD ($)	Retained earnings (Accumulated losses)MXN ($)	Remeasurement of employee benefitsUSD ($)	Remeasurement of employee benefitsMXN ($)	Cash flow hedgesUSD ($)	Cash flow hedgesMXN ($)	Exchange differences on translation of foreign operationsUSD ($)	Exchange differences on translation of foreign operationsMXN ($)	USD ($)	MXN ($)
Balance as of beginning of the year at Dec. 31, 2015		$ 2,973,559		$ (91,328)	$ 1		$ 38,250		$ 1,791,040		$ 2,374,494		$ (2,304)		$ (292,474)				$ 6,791,238
Treasury shares				(17,025)					17,025
Exercise of stock options				17,536															17,536
Forfeited shares from incentive plan				963					(963)
Long-term incentive plan cost				6,489					(6,489)
Net (loss) income for the period											3,519,489								3,478,598
IFRS 15 adoption											(40,891)								(40,891)
Other comprehensive (loss) income items													(310)		437,286		$ (4,756)		432,220
Total comprehensive (loss) income for the year, net of tax											3,478,598		(310)		437,286		(4,756)		3,910,818
Balance as of end of the year at Dec. 31, 2016		2,973,559		(83,365)	1		38,250		1,800,613		5,853,092		(2,614)		144,812		(4,756)		10,719,592
Legal reserve increase							252,928				(252,928)
Treasury shares				(10,108)					10,108
Exercise of stock options				638															638
Long-term incentive plan cost				7,801					(6,193)										1,608
Net (loss) income for the period											(594,599)								(651,788)
IFRS 15 adoption											(57,189)								(57,189)
Other comprehensive (loss) income items													(1,243)		(30,131)		(7,178)		(38,552)
Total comprehensive (loss) income for the year, net of tax											(651,788)		(1,243)		(30,131)		(7,178)		(690,340)
Balance as of end of the year at Dec. 31, 2017		2,973,559		(85,034)	1		291,178		1,804,528		4,948,376		(3,857)		114,681		(11,934)		10,031,498
Treasury shares				(57,320)					41,590										(15,730)
Exercise of stock options				10,648															10,648
Long-term incentive plan cost				9,045					(9,045)
Net (loss) income for the period											(682,500)							$ (34,674)	(682,500)
Other comprehensive (loss) income items													4,192		(198,584)		22,156	(8,750)	(172,236)
Total comprehensive (loss) income for the year, net of tax											(682,500)		4,192		(198,584)		22,156	(43,424)	(854,736)
Balance as of end of the year at Dec. 31, 2018	$ 151,073	$ 2,973,559	$ (6,232)	$ (122,661)	$ 1	$ 14,793	$ 291,178	$ 93,333	$ 1,837,073	$ 216,730	$ 4,265,876	$ 17	$ 335	$ (4,263)	$ (83,903)	$ 520	$ 10,222	$ 465,972	$ 9,171,680

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical)	Apr. 25, 2019$ / $	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017$ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Consolidated Statements of Changes in Equity
Convenience translation to U.S. dollars	18.9578	19.6829	7.7440	609.6100	19.7354	7.3448	572.5600	20.6640	7.5221	561.1000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Operating activities
(Loss) income before income tax	$ (46,778)	$ (920,736)	$ (812,963)	$ 4,935,780
Non-cash adjustment to reconcile income before tax to net cash flows from operating activities:
Depreciation and amortization	25,435	500,641	548,687	536,543
Provision for doubtful accounts	540	10,621	4,720	9,164
Finance income	(7,753)	(152,603)	(105,795)	(102,591)
Finance cost	6,114	120,334	86,357	35,116
Net foreign exchange differences	7,142	140,575	504,366	(1,054,333)
Financial instruments	(23,117)	(455,009)	50,007	353,943
Net gain on disposal of rotable spare parts, furniture and equipment and gain on sale of aircraft	(30,829)	(606,812)	(64,978)	(483,565)
Employee benefits	325	6,401	4,657	3,122
Aircraft and engine lease extension benefit and other benefits from service agreements	(4,945)	(97,330)	(100,580)	(82,178)
Management incentive and long-term incentive plans	656	12,919	8,783	4,826
Cash flows from operating activities before changes in working capital	(73,210)	(1,440,999)	123,261	4,155,827
Changes in operating assets and liabilities:
Related parties	(1,596)	(31,422)	(24,091)	50,706
Other accounts receivable	87	1,711	139,774	(157,370)
Recoverable and prepaid taxes	974	19,168	(438,966)	(361,377)
Inventories	(123)	(2,421)	(50,966)	(80,811)
Prepaid expenses	(305)	(6,001)	726,020	(1,027,040)
Other assets	(571)	(11,228)	21,941	19,540
Guarantee deposits	11,788	232,019	57,425	(1,957,350)
Suppliers	712	14,022	196,082	136,178
Accrued liabilities	18,961	373,203	289,920	231,656
Other taxes and fees payable	28,359	558,174	353,014	523,524
Unearned transportation revenue	7,377	145,207	65,258	237,204
Financial instruments	41,033	807,644	126,053	(450,902)
Other liabilities	(1,976)	(38,875)	11,198	528,365
Cash flows from operating activities before interest received and income tax paid	31,510	620,202	1,595,923	1,848,150
Interest received	7,753	152,602	105,795	102,591
Income tax paid	(10,517)	(207,004)	(715,849)	(972,009)
Net cash flows provided by operating activities	28,746	565,800	985,869	978,732
Investing activities
Acquisitions of rotable spare parts, furniture and equipment	(139,368)	(2,743,155)	(2,521,752)	(2,198,697)
Acquisitions of intangible assets	(3,608)	(71,007)	(130,908)	(60,792)
Pre-delivery payments reimbursements	33,957	668,365	213,947	1,733,093
Proceeds from disposals of rotable spare parts, furniture and equipment	38,429	756,402	178,273	498,438
Net cash flows used in investing activities	(70,590)	(1,389,395)	(2,260,440)	(27,958)
Financing activities
Proceeds from exercised stock options	541	10,648	638	20,186
Treasury shares purchase	(2,912)	(57,320)	(10,108)	(17,025)
Interest paid	(8,899)	(175,170)	(105,388)	(39,350)
Other finance interest paid	(1,451)	(28,567)		(137,830)
Payments of financial debt	(60,641)	(1,193,589)	(924,867)	(1,531,460)
Proceeds from financial debt	61,416	1,208,846	2,438,025	1,716,244
Net cash flows (used in) provided by financing activities	(11,946)	(235,152)	1,398,300	10,765
(Decrease) increase in cash and cash equivalents	(53,790)	(1,058,747)	123,729	961,539
Net foreign exchange differences on cash balance	(1,483)	(29,190)	(244,101)	952,399
Cash and cash equivalents at beginning of year	353,143	6,950,879	7,071,251	5,157,313
Cash and cash equivalents at end of year	$ 297,870	$ 5,862,942	$ 6,950,879	$ 7,071,251

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical)	Apr. 25, 2019$ / $	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017$ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Consolidated Statements of Cash Flows
Convenience translation to U.S. dollars	18.9578	19.6829	7.7440	609.6100	19.7354	7.3448	572.5600	20.6640	7.5221	561.1000

Description of the business and

Description of the business and summary of significant accounting policies	12 Months Ended
	Dec. 31, 2018
Description of the business and summary of significant accounting policies
Description of the business and summary of significant accounting policies	CONTROLADORA VUELA COMPAÑÍA DE AVIACIÓN, SUBSIDIARIES (d.b.a. VOLARIS) Notes to Consolidated Financial Statements For the years ended December 31, 2018, 2017 and 2016 (In thousands of Mexican pesos and thousands of U.S. dollars, 1. Description of the business and summary of significant accounting policies Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (“Controladora” or the “Company”) was incorporated in Mexico in accordance with Mexican Corporate laws on October 27, 2005. Controladora is domiciled in Mexico City at Av. Antonio Dovali Jaime No. 70, 13 th Floor, Tower B, Colonia Zedec Santa Fe, Mexico City. 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. Concesionaria’s concession was granted by the Mexican federal government through the Mexican Communications and Transportation Ministry ( Secretaría de Comunicaciones y Transportes ) on May 9, 2005 initially for a period of five years and was extended on February 17, 2010 for an additional period of ten years. Concesionaria made its first commercial flight as a low-cost airline on March 13, 2006. The Company operates under the trade name of “Volaris”. On June 11, 2013, Controladora Vuela Compañía de Aviación, S.A.P.I. de C.V. changed its corporate name to Controladora Vuela Compañía de Aviación, S.A.B. de C.V. On September 23, 2013, the Company completed its dual listing Initial Public Offering (“IPO”) on the New York Stock Exchange (“NYSE”) and on the Mexican Stock Exchange ( Bolsa Mexicana de Valores , or “BMV”), and on September 18, 2013 its shares started trading under the ticker symbol “VLRS” and “VOLAR”, respectively. On November 16, 2015, certain shareholders of the Company completed a secondary follow-on equity offering on the NYSE. On November 10, 2016, the Company, through its subsidiary Vuela Aviación, S.A. (“Volaris Costa Rica”), obtained from the Costa Rican civil aviation authorities an air operator certificate to provide air transportation services for passengers, cargo and mail, in scheduled and non-scheduled flights for an initial period of five years. On December 1, 2016, Volaris Costa Rica started operations. The accompanying consolidated financial statements and notes were authorized for issuance by the Company’s Chief Executive Officer, Enrique Beltranena, and Vice-president and Chief Financial Officer, Sonia Jerez Burdeus, on April 11, 2019. Those consolidated financial statements and notes were approved by the Company´s Board of Directors and by the Shareholders on April 24, 2019. The accompanying consolidated financial statements were approved for issuance in the Company´s annual report on Form 20-F by the Company´s Chief Executive Officer and Vice-president and Chief Financial Officer on April 25, and subsequent events were considered through that date (Note 25). a) Relevant events Shares conversion On February 16, 2018, one of the Company´s shareholders concluded the conversion of 45,968,598 Series B Shares for the equivalent number of Series A Shares. This conversion has no impact either on the total number of outstanding shares nor on the earnings-per-share calculation. (Note 18) New code-share agreement On January 16, 2018, the Company and Frontier Airlines (herein after Frontier) entered into a code-share operations agreement, which started operations in September. Through this alliance, the Company´s customers gain access to additional cities in the U.S. beyond the current available destinations as the Company’s customers are able to buy a ticket throughout any of Frontier’s actual destinations; and Frontier customers gain first-time access to new destinations in Mexico through Volaris presence in Mexican airports. Tickets from Frontier can be purchased directly from the Volaris’ website. Purchase of 80 A320 New Engine Option ("NEO") aircraft On December 28, 2017, the Company amended the agreement with Airbus, S.A.S. ("Airbus") for the purchase of additional 80 A320NEO family aircraft to be delivered from 2022 to 2026, to support the Company's targeted growth markets in Mexico, United States and Central America. The related commitments for the acquisitions of such aircraft are disclosed in Note 23. b) Basis of preparation Statement of compliance These consolidated financial statements comprise the financial statements of the Company and its subsidiaries at December 31, 2018, 2017 and 2016 and for each of the three years in the period ended December 31, 2018 and were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The presentation currency of the Company’s consolidated financial statements is the Mexican peso, which is used also for compliance with its legal and tax obligations. All values in the consolidated financial statements are rounded to the nearest thousand (Ps.000), except when otherwise indicated. The Company has consistently applied its accounting policies to all periods presented in these consolidated financial statements, and provide comparative information in respect of the previous period. The Company presents an additional statement of financial position at January 1 2017, due to a retrospective application of accounting policies as a result of the adoption of IFRS 15 “Revenue from contracts with customers” See Note 1 x. 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”). 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 consolidated financial statements and notes. Actual results could differ from those estimates. c) Basis of consolidation The accompanying consolidated financial statements comprise the financial statements of the Company and its subsidiaries. At December 31, 2018, 2017 and 2016, for accounting purposes the companies included in the consolidated financial statements are as follows: Principal % Equity interest Name Activities Country 2018 2017 2016 Concesionaria Air transportation services for passengers, cargo and mail throughout Mexico and abroad Mexico 100 % 100 % 100 % Volaris Costa Rica Air transportation services for passengers, cargo and mail in Costa Rica and abroad Costa Rica 100 % 100 % 100 % Vuela, S.A. (“Vuela”)* Air transportation services for passengers, cargo and mail in Guatemala and abroad Guatemala 100 % 100 % 100 % Vuela El Salvador, S.A. de C.V.* Air transportation services for passengers, cargo and mail in El Salvador and abroad El Salvador 100 % — — Comercializadora Volaris, S.A. de C.V. Merchandising of services Mexico 100 % 100 % 100 % Servicios Earhart, S.A.* Recruitment and payroll Guatemala 100 % 100 % 100 % Servicios Corporativos Volaris, S.A. de C.V. (“Servicios Corporativos”) Recruitment and payroll Mexico 100 % 100 % 100 % Servicios Administrativos Volaris, S.A. de C.V. (“Servicios Administrativos”) Recruitment and payroll Mexico 100 % 100 % 100 % Comercializadora V Frecuenta, S.A. de C.V. (“Loyalty Program”)** Loyalty Program México 100 % — — Viajes Vuela, S.A. de C.V. (“Viajes Vuela”)(1) Travel agency Mexico 100 % 100 % 100 % Deutsche Bank México, S.A., Trust 1710 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % 100 % Deutsche Bank México, S.A., Trust 1711 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number F/307750 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number F/745291 Share administration trust (Note 17) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number CIB/3081 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % — — *The Companies have not started operations yet in Guatemala and El Salvador. **The Company has not started operations yet (1) With effect from July 16, 2018, the name of the Company was changed from Operaciones Volaris, S.A. de C.V. to Viajes Vuela, S.A. de C.V. The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has: (i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee). (ii) Exposure, or rights, to variable returns from its involvement with the investee. (iii) The ability to use its power over the investee to affect its returns. When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (i) The contractual arrangement with the other vote holders of the investee. (ii) Rights arising from other contractual arrangements. (iii) The Company’s voting rights and potential voting rights. The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. All intercompany balances, transactions, unrealized gains and losses resulting from intercompany transactions are eliminated in full. On consolidation, the assets and liabilities of foreign operations are translated into Mexican pesos at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in other comprehensive income (“OCI”). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognized in profit or loss. d) Revenue recognition As of January 1, 2018, the Company adopted IFRS 15 using the full retrospective method of adoption, in order to provide comparative results in all periods presented, recognizing the effect in retained earnings as of January 1, 2016. The main impact of IFRS 15 is the timing of recognition of certain air travel-related services (“ancillaries”). Under the new standard, certain ancillaries are recognized when the Company satisfies its performance obligations which is typically when the air transportation service is rendered (at the time of the flight). This change arises primarily because those ancillaries do not constitute separate performance obligations or represent administrative tasks that do not represent a different promised service and therefore should be accounted for together with the air fare as a single performance obligation of providing passenger transportation. Also, certain complementary services including re-accommodation in other airlines provided to customers are recorded as a reduction of revenues. The classification of certain ancillary fees in the statement of operations, such as advanced seat selection, fees charged for excess baggage, itinerary changes and other air travel-related services, changed with adoption of IFRS 15, since they are part of the single performance obligation of providing passenger transportation See Note 1 x. Passenger revenues Revenues from the air transportation of passengers are recognized at the earlier of when the service is provided or when the non-refundable ticket expires at the date of the scheduled travel. Ticket sales for future flights are initially recognized as contract liabilities under the caption “unearned transportation revenue” and, once the transportation service is provided by the Company or when the non-refundable ticket expires at the date of the scheduled travel, the earned revenue is recognized as passenger ticket revenues and the unearned transportation revenue is reduced by the same amount. All the Company’s tickets are non-refundable and are subject to change upon a payment of a fee. Additionally, the Company does not operate a frequent flier program. The most significant passenger revenue includes revenues generated from: (i) fare revenue and (ii) other passenger revenues. Other passenger services include but are not limited to fees charged for excess baggage, bookings through the call center or third-party agencies, advanced seat selection, itinerary changes and charters. They are recognized as revenue when the obligation of passenger transportation service is provided by the Company or when the non-refundable ticket expires at the date of the scheduled travel. The Company also classifies as other passenger revenue “V Club” and other similar services, which are recognized as revenue over time when the service is provided, since customer simultaneously receives and consumes the benefits provided by the Company. Non-passenger revenues The most significant non-passenger revenues include revenues generated from: (i) revenues from other non-passenger services described below and (ii) cargo services. Revenues from other non-passenger services mainly include but are not limited to commissions charged to third parties for the sale of hotel reservations, trip insurance, rental cars and advertising spaces to third parties. They are recognized as revenue at the time the service is provided. The Company concluded that the timing of satisfaction of revenue from advertising spaces is to be recognized over time because the customer simultaneously receives and consumes the benefits provided by the Company. The Company also evaluated the principal versus agent considerations as it relates to certain non-air travel services arrangements with third party providers. No changes were identified under this analysis as the Company is agent for those services provided by third parties. Other considerations analyzed as part of revenue from contracts with customers All revenues offered by the Company including sales of tickets for future flights, other passenger related services and non-passenger revenue must be paid through a full cash settlement. The payment of the transaction price is equal to the cash settlement from the client at the sales time (using different payment options like credit or debit cards, paying through a third party or directly at the counter in cash). There is little or no judgment to determine the point in time of the revenue recognition, and the amount of it. Even if mainly all of the sales of services are initially recognized as contract liabilities, there is no financing component in these transactions. The cost to obtain a contract is represented by the commissions paid to the travel agencies and the bank commissions charged by the financial institutions for processing electronic transactions (Note 10). The Company does not incur any additional costs to obtain and fulfill a contract that is eligible for capitalization. Trade receivables are mainly with financial institutions due to transactions with credit and debit cards, and therefore they are non-interest bearing and are mainly on terms of 24 to 48 hours. The Company has the right of collection at the beginning of the contracts and there are no discounts, payment incentives, bonuses or other variable considerations subsequent to the purchase that could modify the amount of the transaction price. The Company does not have any obligations for returns, refunds and other similar obligations. All revenues from the Company related to future services, or services are rendered through a period of time less than 12 months. Breakdown of revenues: As of December 31, 2018, 2017 and 2016, the revenues from customers of contracts is described as follows: At the flight time At the sale Total Revenue recognition as of December 31, 2018 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 12,336,095 Ps. 6,151,763 Ps. — Ps. — Ps. 18,487,858 Other Passenger Revenues 5,182,572 2,598,375 68,264 43,286 7,892,497 17,518,667 8,750,138 68,264 43,286 26,380,355 Non-Passenger Revenues Other Non-Passenger revenues 685,219 12,138 — — 697,357 Cargo 221,324 6,114 — — 227,438 Total Ps. 18,425,210 Ps. 8,768,390 Ps. 68,264 Ps. 43,286 Ps. 27,305,150 At the flight time At the sale Total Revenue recognition as of December 31, 2017 (Adjusted) Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 12,284,795 Ps. 5,506,522 Ps. — Ps. — Ps. 17,791,317 Other Passenger Revenues 4,087,664 1,992,696 11,283 6,861 6,098,504 16,372,459 7,499,218 11,283 6,861 23,889,821 Non-Passenger Revenues Other Non-Passenger revenues 723,297 4,095 — — 727,392 Cargo 165,907 5,066 — — 170,973 Total Ps. 17,261,663 Ps. 7,508,379 Ps. 11,283 Ps. 6,861 Ps. 24,788,186 At the flight time At the sale Total Revenue recognition as of December 31, 2016 (Adjusted) Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 11,701,014 Ps. 6,089,116 Ps. — Ps. — Ps. 17,790,130 Other Passenger Revenues 3,238,826 1,680,626 — — 4,919,452 14,939,840 7,769,742 — — 22,709,582 Non-Passenger Revenues Other Non-Passenger revenues 587,270 3,085 — — 590,355 Cargo 166,934 4,689 — — 171,623 Total Ps. 15,694,044 Ps. 7,777,516 Ps. — Ps. — Ps. 23,471,560 Transactions from unearned transportation revenues. 2017 2016 2018 Adjusted Adjusted January 1, Ps. 2,293,309 Ps. 2,228,051 Ps. 1,957,254 Deferred 26,254,391 23,714,649 22,778,110 Recognized in revenue during the year (26,109,184) (23,649,391) (22,507,313) December 31, Ps. 2,438,516 Ps. 2,293,309 Ps. 2,228,051 The performance obligations related to contract liability are recognized over the 12 following months and are related to the scheduled flights and other passenger services purchased by the client in advance. e) 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 purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash and short-term investments as defined above. f) Financial instruments -initial recognition and subsequent measurement 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. i) Financial assets Initial recognition Classification of financial assets and initial reccognition The Company determines the classification and measurement of financial assets, in accordance with the categories in IFRS 9, 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. 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. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: a) The rights to receive cash flows from the asset have expired; b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset; or When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. ii) Impairment of financial assets The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired in the Cash Generating Units (CGU). An impairment exists if one or more events has occurred since the initial recognition of an asset (an incurred ‘loss event’), that has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in receivable, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated cash flows, such as changes in arrears or economic conditions that correlate with defaults. Further disclosures related to impairment of financial assets are also provided in Note 2vi) and Note 8. For trade receivables, the Company records allowance for credit losses in accordance with the objective evidence of the incurred losses. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. For the years ended December 31, 2018, 2017 and 2016, the Company recorded expected credit losses on accounts receivable of Ps.10,621, Ps.4,720 and Ps.9,164, respectively (Note 8). iii) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and borrowings, accounts payables to suppliers, unearned transportation revenue, other accounts payable and financial instruments. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. 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. Loans and borrowings are the category most relevant to the Company. 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. Amortized cost is calculated by taking into account any discount or premium on issuance and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the consolidated statements of operations. This amortized cost category generally applies to interest-bearing loans and borrowings (Note 5). Financial liabilities at FVTPL Financial liabilities at FVTPL include financial liabilities under the fair value option, which 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. During the years ended December 31, 2018, 2017 and 2016 the Company has did not designated any financial liability as at FVTPL. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of operations. Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated statement of financial position if there is: (i) A currently enforceable legal right to offset the recognized amounts, and (ii) An intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. g) Other accounts receivable Other accounts receivables are due primarily from major credit card processors associated with the sales of tickets and are stated at cost less allowances made for credit losses, which approximates fair value given their short-term nature. h) Inventories Inventories consist primarily of flight equipment expendable parts, materials and supplies, and are initially recorded at acquisition cost. Inventories are carried at the lower of cost and their net realization value. The cost is determined on the basis of the method of specific identification and expensed when used in operations. i) Intangible assets Cost related to the purchase or development of computer software that is separable from an item of related hardware is capitalized separately and amortized over the period in which it will generate benefits not exceeding five years on a straight-line basis. The Company annually reviews the estimated useful lives and salvage values of intangible assets and any changes are accounted for prospectively. The Company records impairment charges on intangible assets used in operations when events and circumstances indicate that the assets or related cash generating unit may be impaired and the carrying amount of a long-lived asset or cash generating unit exceeds its recoverable amount, which is the higher of (i) its fair value less cost to sell, and (ii) its value in use. The value in use calculation is based on a discounted cash flow model, using our 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. j) Guarantee deposits Guarantee deposits consist primarily of aircraft maintenance deposits paid to lessors, deposits for rent of flight equipment and other guarantee deposits. Aircraft and engine deposits are held by lessors in U.S. dollars and are presented as current assets and non-current assets, based on the recovery dates of each deposit established in the related agreements (Note 11). Aircraft maintenance deposits paid to lessors Most of the Company’s lease agreements require the Company to pay maintenance deposits to aircraft lessors to be held as collateral in advance of the Company’s performance of major maintenance activities. These lease agreements provide that maintenance deposits are reimbursable to the Company upon completion of the maintenance event in an amount equal to the lesser of (i) the amount of the maintenance deposits held by the lessor associated with the specific maintenance event, or (ii) the qualifying costs related to the specific maintenance event. Substantially all these maintenance deposits are calculated based on a utilization measure of the leased aircrafts and engines, such as flight hours or cycles, and are used solely to collateralize the lessor for maintenance time run off the aircraft and engines until the completion of the maintenance of the aircraft and engines. Maintenance deposits expected to be recovered from lessors are reflected as guarantee deposits in the accompanying consolidated statement of financial position. These deposits are recorded as a monetary asset and are revaluated in order to record the foreign currency changes at each reported period. The portion of prepaid maintenance deposits that is deemed unlikely to be recovered, primarily relating to the rate differential between the maintenance deposits and the expected cost for the next related maintenance event that the deposits serve to collateralize, is recognized as supplemental rent in the consolidated statements of operations. Thus, any excess of the required deposit over the expected cost of the major maintenance event is recognized as supplemental rent in the consolidated statements of operations starting from the period the determination is made. For the years ended December 31, 2018, 2017 and 2016, the Company expensed as supplemental rent Ps.87,019, Ps.103,648 and Ps.143,923, respectively. Any usage-based maintenance deposits to be paid to the lessor, related with a major maintenance event that (i) is not expected to be performed before the expiration of the lease agreement, (ii) is nonrefundable to the Company and (iii) is not substantively related to the maintenance of the leased asset, is accounted for as supplemental rent in the consolidated statements of operations. The Company records lease payment as supplemental rent when it becomes probable and reasonably estimable that the maintenance deposits payments will not be refunded. During the year ended December 31, 2018, 2017 and 2016, the Company added ten, five and 17 new net aircraft to its fleet, respectively. Some lease agreements of these aircraft do not require the obligation to pay maintenance deposits to lessors in advance in order to ensure major maintenance activities, so the Company does not record guarantee deposits regarding these aircraft. However, some lease agreements provide the obligation to make a maintenance adjustment payment to the lessors at the end of the contract period. The maintenance adjustment covers maintenance events that are not expected to be made before the termination of the contract; for such agreements the Company accrues a liability related to the amount of the costs to be incurred at the lease term, since no maintenance deposits had been made, Note 15c). The Company recognizes supplemental rent as incurred in the consolidated statement of operations. For the years ended December 31, 2018, 2017 and 2016, the Company expensed as supplemental rent for these maintenance tasks Ps.212,582, Ps.162,108 and Ps.201,434, respectively. The Company makes certain assumptions at the inception of the lease and at each consolidated statement of financial position date to determine the recoverability of maintenance deposits. These assumptions are based on various factors such as the estimated time between the maintenance events, the date the aircraft is due to be returned to the lessor, and the nu

Significant accounting judgment

Significant accounting judgments, estimates and assumptions	12 Months Ended
	Dec. 31, 2018
Significant accounting judgments, estimates and assumptions
Significant accounting judgments, estimates and assumptions	2. 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. Note 1 to the Company’s consolidated financial statements provides a detailed discussion of the significant accounting policies. 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’s 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 costs of future maintenance, 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 (Note 11). ii) LTIP, LTRP and MIP (equity settled) 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 treasury shares, 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. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in (Note 17). SARs plan (cash settled) The cost of the SARs plan is measured initially at fair value at the grant date, further details of which are given in (Note 17). 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. As with the equity settled awards described above, the valuation of cash settled award also requires using similar inputs, as appropriate. 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. Tax losses relate to operations of the Company on a stand-alone basis, in conformity with current Tax Law and may be carried forward against taxable income generated in the succeeding years at each country and may not be used to offset taxable income elsewhere in the Company’s consolidated group (Note 19). During the years ended December 31, 2018, 2017 and 2016, the Company used Ps.154,353, Ps.16,378 and Ps.195,116, respectively, of the available tax loss carry-forwards (Note 19). 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. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Note 4). v) Impairment of long-lived assets The Company assesses whether there are indicators of impairment for long-lived assets annually and at other times when such indicators exist in the related CGU. 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 expected credit loss An allowance for expected credit loss on accounts receivables is established in accordance with the information mentioned in Note 1f) ii).

Financial instruments and risk

Financial instruments and risk management	12 Months Ended
	Dec. 31, 2018
Financial instruments and risk management
Financial instruments and risk management	3. Financial instruments and risk management Financial risk management The Company’s activities are exposed to different financial risks stemmed from exogenous variables which are not under their control but whose effects might be potentially adverse such as: (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 net earnings and working capital requirements. The Company uses derivative financial instruments to hedge part of such risks. The Company does not enter into 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. Since adverse movements 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 department, which identifies and measures financial risk exposures, in order to design strategies to mitigate or transform the profile of certain risk exposures, which are taken up to the corporate governance level for approval. Market risk a) Jet fuel price risk Since the contractual agreements with jet fuel suppliers include reference to jet fuel index, the Company is exposed to fuel price risk which might have an impact on the forecasted consumption volumes. The Company’s jet fuel risk management policy aims to provide the Company with protection against increases in jet fuel prices. In an effort to achieve the aforesaid, the risk management policy allows the use of derivative financial instruments available on over the counter (“OTC”) markets with approved counterparties and within approved limits. Aircraft jet fuel consumed in the years ended December 31, 2018, 2017 and 2016 represented 36%, 29% and 28%, of the Company’s operating expenses, respectively. During the year ended December 31, 2018, the Company entered into US Gulf Coast Jet Fuel 54 Asian Zero-Cost collar options and US Gulf Coast Jet fuel 54 Asian call options designated to hedge 45.6 thousand gallons. Such hedges represent a portion of the projected consumption for the next twelve months. Additionally, as of December 31, 2017, the Company entered into US Gulf Coast Jet fuel 54 Asian call options designated to hedge 61.1 million gallons. Such hedges represented a portion of the projected consumption for the next nine months of operations. In accordance with IFRS 9 the Company separates the intrinsic value from the extrinsic value of an option contract; as such, the change in the intrinsic value can be designated as hedge accounting. Because extrinsic value (time and volatility values) of the Asian call options is related to a “transaction related hedged item”, it is required to be segregated and accounted for as a cost of hedging in OCI and accrued as a separate component of stockholders’ equity until the related hedged item matures and therefore impacts profit and loss. The underlying (US Gulf Coast Jet Fuel 54) of the options held by the Company is a consumption asset (energy commodity), which is not in the Company’s inventory. Instead, it is directly consumed by the Company’s fleet at different airport terminals. Therefore, although a non-financial asset is involved, its initial recognition does not generate a book adjustment in the Company’s inventories. Rather, it is initially accounted for in the Company’s OCI and a reclassification adjustment is made from OCI to profit and loss and recognized in the same period or periods in which the hedged item is expected to be allocated to profit and loss. Furthermore, the Company hedges its forecasted jet fuel consumption month after month, which is congruent with the maturity date of the monthly serial Asian call and Zero-Cost collar options. As of December 31, 2018, 2017 and 2016, the fair value of the outstanding US Gulf Coast Jet Fuel Asian call options was Ps.48,199, Ps.497,403 and Ps.867,809, respectively, as for the Zero-Cost collars it was a (loss) of Ps.(122,948) and is presented as part of the financial assets in the consolidated statement of financial position. (See Note 5). The Company did not hold any position in Zero-Cost collars for the periods ended 2017 and 2016. The amount of cost of hedging derived from the extrinsic value changes of these options as of December 31, 2018 recognized in other comprehensive income totals Ps.134,096 (the positive cost of hedging in December 2017 and 2016 totals Ps.163,836 and Ps.218,038, respectively), and will be recycled to the fuel cost during 2019, as these options expire on a monthly basis and the jet fuel is consumed. During the years ended December 31, 2018, 2017 and 2016, the net (positive) /negative cost of these options recycled to the fuel cost was Ps.(402,493), Ps.26,980 and Ps.305,166, respectively. The following table includes the notional amounts and strike prices of the derivative financial instruments outstanding as of the end of the year: Position as of December 31, 2018 Jet fuel Asian call and Zero-Cost collars option contracts maturities 1 Half 2019 2 Half 2019 2019 Total Jet fuel risk Asian Calls Notional volume in gallons (thousands)* 12,790 13,842 26,632 Strike price agreed rate per gallon (U.S.dollars)** US$ 1.84 US$ 1.84 US$ 1.84 Approximate percentage of hedge (of expected consumption value) 10 % 10 % 10 % Jet fuel risk Zero-Cost collars Notional volume in gallons (thousands)* 18,963 — 18,963 Strike price agreed rate per gallon (U.S. dollars)** US$ 1.91/2.46 US$ — US$ 1.91/2.46 Approximate percentage of hedge (of expected consumption value) 15 % — % 15 % All-in Approximate percentage of hedge (of expected consumption value) 25 % 10 % 18 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average Position as of December 31, 2017 Jet fuel Asian call option contracts maturities 1 Half 2018 2 Half 2018 2018 Total Jet fuel risk Notional volume in gallons (thousands)* 69,518 61,863 131,381 Strike price agreed rate per gallon (U.S.dollars)** US$ 1.6861 US$ 1.8106 US$ 1.7447 Approximate percentage of hedge (of expected consumption value) 60 % 50 % 55 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average Position as of December 31, 2016 Jet fuel Asian call option contracts maturities Jet fuel risk 1 Half 2017 2 Half 2017 2017 Total 1 Half 2018 3Q 2018 2018 Total Notional volume in gallons (thousands)* 55,436 63,362 118,798 62,492 7,746 70,238 Strike price agreed rate per gallon (U.S. dollars)** US$ 1.6245 US$ 1.4182 US$ 1.5145 US$ 1.6508 US$ 1.5450 US$ 1.6392 Approximate percentage of hedge (of expected consumption value) 51 % 53 % 52 % 45 % 10 % 24 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average The following table illustrates the sensitivity of US Gulf Coast Jet Fuel 54 Zero Cost Collars to a reasonably possible change in fuel prices, with all other variables held constant, on the caption of accumulated other comprehensive income. The calculations were made considering a parallel movement of +/-5% in the spot price of the US Gulf Coast Jet 54 as of December 31, 2018: Sensitivity of position as of December 31, 2018 effect on equity (thousands of U.S. dollars) US Gulf Coast Jet Fuel 54 spot level +5% 1.67 -5% (1.51) b) Foreign currency risk Mexican Peso is the functional currency of the Company, a significant portion of its operating expenses are denominated in U.S. dollar; thus, Volaris relies on sustained U.S. dollar cash flows coming from operations in the United States of America and Central America to support part of its commitments in such currency, however there’s still a mismatch. Foreign currency risk arises from possible unfavorable movements in the exchange rate which could have a negative impact in the Company’s cash flows. To mitigate this risk, the Company may use foreign exchange derivative financial instruments. While most of the Company’s revenue is generated in Mexican pesos, although 32% of its revenues came from operations in the United States of America and Central America for the year ended at December 31, 2018 (30% at December 31, 2017 and 33% at December 31, 2016) and U.S. dollar denominated collections accounted for 38%, 40% and 38%, of the Company’s total collections in 2018, 2017 and 2016, respectively. Company’s expenditures, particularly those related to aircraft leasing and acquisition, are denominated in U.S. dollar. In addition, although jet fuel for those flights originated in Mexico are paid in Mexican pesos, the price formula is impacted by the Mexican peso /U.S. dollar exchange rate. The Company’s foreign exchange on and off-balance sheet exposure as of December 31, 2018, 2017 and 2016 is as set forth below: Thousands of U.S. dollars 2018 2017 2016 Assets: Cash and cash equivalents US$ 279,829 US$ 344,038 US$ 297,565 Other accounts receivable 10,957 13,105 11,619 Aircraft maintenance deposits paid to lessors 329,983 352,142 343,787 Deposits for rental of flight equipment 32,166 25,343 30,025 Derivative financial instruments 3,172 25,204 41,996 Total assets 656,107 759,832 724,992 Liabilities: Financial debt (Note 5) 155,455 128,296 76,789 Foreign suppliers 51,012 53,729 56,109 Taxes and fees payable 14,823 10,304 6,874 Derivative financial instruments 6,246 — 684 Total liabilities 227,536 192,329 140,456 Net foreign currency position US$ 428,571 US$ 567,503 US$ 584,536 At April 25, 2019, date of issuance of these financial statements, the exchange rate was Ps.18.9578 per U.S. dollar. In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration. Thousands of U.S. dollars 2018 2017 2016 Off-balance sheet transactions exposure: Aircraft and engine operating lease payments (Note 14) US$ 2,334,767 US$ 1,840,316 US$ 1,727,644 Aircraft and engine commitments (Note 23) 1,070,187 1,123,377 315,326 Total US$ 3,404,954 US$ 2,963,693 US$ 2,042,970 During the year ended December 31, 2018 and 2017, the Company entered into foreign currency forward contracts in U.S. dollars to hedge approximately 20% and 9% of its future 12 and 6 months of aircraft rental expenses. A portion of the Company's position foreign currency forwards matured throughout the fourth quarter of 2018 (November & December), all of the Company’s position in foreign currency forward contracts from 2017 matured throughout the second half of the year (August, September, November and December), therefore there was no outstanding balance as of December 31, 2017. As of December 31, 2018, the unrealized gains of Ps.14,241 relating to the foreign currency forward contracts is included in OCI. For the year ended December 31, 2018, the net loss on the foreign currency forward contracts is Ps.52,516, which was recognized as part of rental expense in the consolidated statements of operations. For the year ended December 31, 2017, the net loss on the foreign currency forward contracts was Ps.11,290 which was recognized as part of rental expense in the consolidated statements of operations. As there were no foreign currency forward contracts as of December 31, 2016, no impact was recognized in the consolidated statements of operations. c) Interest rate risk Interest rate risk is the risk that the fair value of future cash flows will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations and flight equipment operating lease agreements with floating interest rates. The Company’s results are affected by fluctuations in certain benchmark market interest rates due to the impact that such changes may have on operational lease payments indexed to the London Inter Bank Offered Rate (“LIBOR”). The Company uses derivative financial instruments to reduce its exposure to fluctuations in market interest rates and accounts for these instruments as an accounting hedge. In most cases, when a derivative can be tailored within the terms and it perfectly matches cash flows of a leasing agreement, it may be designated as a CFH and the effective portion of fair value variations are recorded in equity until the date the cash flow of the hedged lease payment is recognized in the consolidated statements of operations. During the years ended December 31, 2018 and 2017, the Company did not have any interest rate swaps. As of December 31, 2016, the Company had outstanding hedging contracts in the form of interest rate swaps with notional amount of US$ 70 million and fair value of Ps.14,144, respectively, recorded in liabilities. For the years ended December 31, 2017 and 2016, the reported loss on the interest rate swaps was Ps.13,827 and Ps.48,777, respectively, which was recognized as part of rental expense in the consolidated statements of operations. All the Company’s position in the form of interest rate swaps matured on March 31 and April 30, 2017 consequently there is no outstanding balance as of December 31, 2018 and 2017. d) Liquidity risk Liquidity risk represents the risk that the Company has insufficient funds to meet its obligations. Because of the cyclical nature of the business, the operations, and its investment and financing needs related to the acquisition of new aircraft and renewal of its fleet, the Company requires liquid funds to meet its obligations. The Company attempts to manage its cash and cash equivalents and its financial assets, relating the term of investments with those of its obligations. Its policy is that the average term of its investments may not exceed the average term of its obligations. This cash and cash equivalents position is invested in highly-liquid short-term instruments through financial entities. The Company has future obligations related to maturities of bank borrowings and derivative contracts. The Company’s off-balance sheet exposure represents the future obligations related to operating lease contracts and aircraft purchase contracts. The Company concluded that it has a low concentration of risk since it has access to alternate sources of funding. The table below presents the Company’s contractual principal payments required on its financial liabilities and the derivative financial instruments fair value: December 31, 2018 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 734,635 Ps. 2,310,939 Ps. 3,045,574 Short-term working capital facilities (Note 5) 461,260 — 461,260 Derivative financial instruments: Jet fuel Asian Zero-Cost collars options contracts 122,948 — 122,948 Total Ps. 1,318,843 Ps. 2,310,939 Ps. 3,629,782 December 31, 2017 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 1,449,236 Ps. 1,079,152 Ps. 2,528,388 Short-term working capital facilities (Note 5) 948,354 — 948,354 Total Ps. 2,397,590 Ps. 1,079,152 Ps. 3,476,742 December 31, 2016 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 328,845 Ps. 943,046 Ps. 1,271,891 Short-term working capital facilities (Note 5) 716,290 — 716,290 Derivative financial instruments: Interest rate swaps contracts 14,144 — 14,144 Total Ps. 1,059,279 Ps. 943,046 Ps. 2,002,325 e) Credit risk Credit risk is the risk that any counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments including derivatives. Financial instruments that expose the Company to credit risk involve mainly cash equivalents and accounts receivable. Credit risk on cash equivalents relate to amounts invested with major financial institutions. Credit risk on accounts receivable relates primarily to amounts receivable from the major international credit card companies. The Company has a high receivable turnover; hence management believes credit risk is minimal due to the nature of its businesses, which have a large portion of their sales settled in credit cards. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. Some of the outstanding derivative financial instruments expose the Company to credit loss in the event of nonperformance by the counterparties to the agreements. However, the Company does not expect any of its counterparties to fail to meet their obligations. The amount of such credit exposure is generally the unrealized gain, if any, in such contracts. To manage credit risk, the Company selects counterparties based on credit assessments, limits overall exposure to any single counterparty and monitors the market position with each counterparty. The Company does not purchase or hold derivative financial instruments for trading purposes. At December 31, 2018, the Company concluded that its credit risk related to its outstanding derivative financial instruments is low, since it has no significant concentration with any single counterparty and it only enters into derivative financial instruments with banks with high credit-rating assigned by international credit-rating agencies. f) Capital management Management believes that the resources available to the Company are sufficient for its present requirements and will be sufficient to meet its anticipated requirements for capital expenditures and other cash requirements for the 2018 fiscal year. The primary objective of the Company’s capital management is to ensure that it maintains healthy capital ratios to support its business and maximize the shareholder’s value. No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2018, 2017 and 2016. The Company is not subject to any externally imposed capital requirement, other than the legal reserve (Note 18).

Fair value measurements

Fair value measurements	12 Months Ended
	Dec. 31, 2018
Fair value measurements
Fair value measurements	4. 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 the Company. The fair value of an asset or a liability is assessed using the course of thought which market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The assessment of a non-financial asset’s fair value considers the 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. 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. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. Set out below, is a comparison by class of the carrying amounts and fair values of the Company’s financial instruments, other than those for which carrying amounts are reasonable approximations of fair values: Carrying amount Fair value 2018 2017 2016 2018 2017 2016 Assets Derivative financial instruments Ps. 62,440 Ps. 497,403 Ps. 867,809 Ps. 62,440 Ps. 497,403 Ps. 867,809 Liabilities Financial debt (3,506,834) (3,476,742) (1,988,181) (3,515,550) (3,481,741) (1,988,445) Derivative financial instruments (122,948) — (14,144) (122,948) — (14,144) Total Ps. (3,567,342) Ps. (2,979,339) Ps. (1,134,516) Ps. (3,576,058) Ps. (2,984,338) Ps. (1,134,780) The following table summarizes the fair value measurements at December 31, 2018: Fair value measurement Quoted prices Significant Significant in active observable unobservable markets inputs inputs Level 1 Level 2 Level 3 Total Assets Derivatives financial instruments: Jet fuel Asian call options contracts* Ps. — Ps. 48,199 Ps. — Ps. 48,199 Foreign currency forward — 14,241 — 14,241 Liabilities Derivatives financial instruments: Jet fuel Asian Zero-Cost collars options contracts* — (122,948) — (122,948) Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (3,515,550) — (3,515,550) Net Ps. — Ps. (3,576,058) Ps. — Ps. (3,576,058) * Jet fuel forwards levels and LIBOR curve. ** LIBOR curve and TIIE Mexican interbank rate. Includes short-term and long-term debt. There were no transfers between level 1 and level 2 during the period. The following table summarizes the fair value measurements at December 31, 2017: Fair value measurement Quoted prices Significant Significant in active observable unobservable markets inputs inputs Level 1 Level 2 Level 3 Total Assets Derivatives financial instruments: Jet fuel Asian call options contracts* Ps. — Ps. 497,403 Ps. — Ps. 497,403 Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (3,481,741) — (3,481,741) Net Ps. — Ps. (2,984,338) Ps. — Ps. (2,984,338) * Jet fuel forwards levels and LIBOR curve. ** LIBOR curve and TIIE Mexican interbank rate. Includes short-term and long-term debt. There were no transfers between level 1 and level 2 during the period. The following table summarizes the fair value measurements at December 31, 2016: Fair value measurement Quoted prices Significant Significant in active observable unobservable markets inputs inputs Level 1 Level 2 Level 3 Total Assets Derivatives financial instruments: Jet fuel Asian call options contracts* Ps. — Ps. 867,809 Ps. — Ps. 867,809 Liabilities Derivatives financial instruments: Interest rate swap contracts** — (14,144) — (14,144) Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (1,988,445) — (1,988,445) Net Ps. — Ps. (1,134,780) Ps. — Ps. (1,134,780) * Jet fuel forwards levels and LIBOR curve. ** LIBOR curve and TIIE Mexican interbank rate. Includes short-term and long-term debt. There were no transfers between level 1 and level 2 during the period. The following table summarizes the loss from derivatives financial instruments recognized in the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016: Consolidated statements of operations Instrument Financial statements line 2018 2017 2016 Jet fuel Asian call options contracts Fuel Ps. (402,493) Ps. 26,980 Ps. 305,166 Foreign currency forward Aircraft and engine rent expenses (52,516) 11,290 — Interest rate swap contracts Aircraft and engine rent expenses — 13,827 48,777 Total Ps. (455,009) Ps. 52,097 Ps. 353,943 The following table summarizes the net (loss) gain on CFH before taxes recognized in the consolidated statements of comprehensive income for the years ended December 31, 2018, 2017 and 2016: Consolidated statements of other comprehensive (loss) income Financial Instrument statements line 2018 2017 2016 Jet fuel Asian call options Contracts OCI Ps. (174,984) Ps. (54,202) Ps. 583,065 Jet fuel Zero cost collars OCI (122,948) — — Interest rate swap contracts OCI — 14,144 41,629 Foreign currency forward OCI 14,241 (2,090) — Total (Note 22) Ps. (283,691) Ps. (42,148) Ps. 624,694 The exchange rates used to translate the above amounts to Mexican pesos at December 31, 2018, 2017 and 2016 were Ps.19.6829, Ps.19.7354 and Ps.20.6640, respectively, per U.S. dollar.

Financial assets and liabilitie

Financial assets and liabilities	12 Months Ended
	Dec. 31, 2018
Financial assets and liabilities
Financial assets and liabilities	5. Financial assets and liabilities At December 31, 2018, 2017 and 2016, the Company’s financial assets are represented by cash and cash equivalents, trade and other accounts receivable, accounts receivable with carrying amounts that approximate their fair value. a) Financial assets 2018 2017 2016 Derivative financial instruments designated as cash flow hedges (effective portion recognized within OCI) Jet fuel Asian call options Ps. 48,199 Ps. 497,403 Ps. 867,809 Foreign currency forward contracts 14,241 — — Total financial assets Ps. 62,440 Ps. 497,403 867,809 Presented on the consolidated statements of financial position as follows: Current Ps. 62,440 Ps. 497,403 543,528 Non-current Ps. — Ps. — Ps. 324,281 b) Financial debt (i) At December 31, 2018, 2017 and 2016, the Company’s short-term and long-term debt consists of the following: 2018 2017 2016 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 May 31, 2022, bearing annual interest rate at the three-month LIBOR plus a spread of 260 basis points. Ps. 3,045,574 Ps. 2,528,388 Ps. 1,271,891 II. In December 2016, the Company entered into a short-term working capital facility with Banco Nacional de México S.A. (“Citibanamex”) in Mexican pesos, bearing annual interest rate at TIIE 28 days plus a 90 basis points. 461,260 948,354 406,330 III. In December 2016, the Company entered into a U.S. dollar denominated short-term working capital facility with Bank of America México S.A. Institución de Banca Múltiple (“Bank of America”) in U.S. dollars, bearing annual interest rate at the one-month LIBOR plus 160 basis points. — — 309,960 IV. Accrued interest 16,364 5,972 6,102 3,523,198 3,482,714 1,994,283 Less: Short-term maturities 1,212,259 2,403,562 1,051,237 Long-term Ps. 2,310,939 Ps. 1,079,152 Ps. 943,046 TIIE: Mexican interbank rate (ii) The following table provides a summary of the Company’s scheduled principal payments of financial debt and accrued interest at December 31, 2018: 2019 2020 2021 2022 Total Finance debt denominated in foreign currency: Santander/Bancomext Ps. 748,865 Ps. 1,508,757 Ps. 777,095 Ps. 25,087 Ps. 3,059,804 Citibanamex 463,394 — — — 463,394 Total Ps. 1,212,259 Ps. 1,508,757 Ps. 777,095 Ps. 25,087 Ps. 3,523,198 (iii) Since 2011, the Company has financed the pre-delivery payments for the acquisition of its aircraft through a revolving financing facility. During the year ended December 31, 2018, the pre-delivery payments for one A320NEO aircraft were financed through this revolving financing facility. On August 1, 2013, the Company signed an amendment to the loan agreement to finance the pre-delivery payments of eight additional A320CEO (“Current Engine Option”) that were delivered in 2015 and 2016. On February 28, 2014 and November 27, 2014, the Company signed amendments to the loan agreement to finance pre-delivery payments of two and four additional A320CEO, respectively, one was delivered in 2014 and five in 2016. On August 25, 2015, the Company signed an amendment to the loan agreement to finance pre-delivery payments of eight additional A320NEO aircraft to be delivered between 2017 and 2018. One of this aircraft was incorporated to the Company´s fleet during 2017. On November 30, 2016, the Company signed an additional amendment to the loan agreement to finance pre-delivery payments of 22 additional A320NEO aircraft to be delivered between 2019 and 2020. This amendment was modified on December 19, 2017 to reschedule the delivery dates of the aircraft listed on August 25, 2015 and November 30, 2016, seven and 22 aircraft, respectively. The new delivery date will be between 2019 and 2021. In accordance with this amendment the revolving line with Santander Bancomext will expire as of November 30, 2021. This amendment was modified on November 30, 2018 to reschedule the delivery dates of 26 aircraft listed between 2019 and 2021. The new delivery date will be between 2019 and 2022. In accordance with this last amendment the revolving line with Santander Bancomext will expire as of May 31, 2022. The “Santander/Bancomext” loan agreement provides for certain covenants, including limits to the ability to, among others: i) Incur debt above a specified debt basket unless certain financial ratios are met. ii) Create liens. iii) Merge with or acquire any other entity without the previous authorization of the Banks. iv) Dispose of certain assets. v) Declare and pay dividends or make any distribution on the Company’s share capital unless certain financial ratios are met. At December 31, 2018, 2017 and 2016, the Company was in compliance with the covenants under the above-mentioned loan agreement. For purposes of financing the pre-delivery payments, Mexican trusts were created whereby, the Company assigned its rights and obligations under the Airbus Purchase Agreement with Airbus, including its obligation to make pre-delivery payments to the Mexican trusts, and the Company guaranteed the obligations of the Mexican trusts under the financing agreement (Deutsche Bank Mexico, S.A. Trust 1710 and 1711). (iv) At December 31, 2018, the Company have available credit lines totaling Ps.6,721,139, of which Ps.4,063,947 were related to financial debt and Ps.2,657,192 were related to letters of credit (Ps.1,048,241 were undrawn). At December 31, 2017, the Company had available credit lines totaling Ps.7,368,346, of which Ps.4,616,861 were related to financial debt and Ps.2,751,485 were related to letters of credit (Ps.1,739,775 were undrawn). At December 31, 2016, the Company had available credit lines totaling Ps.6,936,237, of which Ps.5,048,477 were related to financial debt and Ps.1,887,760 were related to letters of credit (Ps.3,703,184 were undrawn). Changes in liabilities arising from financing activities At December 31, 2018, 2017 and 2016, the changes in liabilities from financing activities from the Company are summarized in the following table: Current vs non- current January 1, Net cash Accrued Foreign exchange reclassification December, 31, 2018 Flows Interest movement and other 2018 Current interest-bearing loans and borrowings Ps. 2,403,562 Ps. (793,363) Ps. 10,392 Ps. 71,380 Ps. (479,712) Ps. 1,212,259 Non-current interest -bearing loans and borrowings 1,079,152 808,620 — (56,945) 480,112 2,310,939 Total liabilities from financing activities Ps. 3,482,714 Ps. 15,257 Ps. 10,392 Ps. 14,435 Ps. 400 Ps. 3,523,198 Current vs non- current January 1, Net cash Accrued Foreign exchange reclassification December, 31, 2017 Flows Interest movement and other 2017 Current interest-bearing loans and borrowings Ps. 1,051,237 Ps. 419,350 Ps. (130) Ps. 25,924 Ps. 907,181 Ps. 2,403,562 Non-current interest -bearing loans and borrowings 943,046 1,093,808 — (50,521) (907,181) 1,079,152 Total liabilities from financing activities Ps. 1,994,283 Ps. 1,513,158 Ps. (130) Ps. (24,597) Ps. — Ps. 3,482,714 Current vs non- current January 1, Net cash Accrued Foreign exchange reclassification December, 31, 2016 Flows Interest movement and other 2016 Current interest-bearing loans and borrowings Ps. 1,371,202 Ps. (753,897) Ps. (1,239) Ps. 121,269 Ps. 313,902 Ps. 1,051,237 Non-current interest - bearing loans and borrowings 219,817 938,681 — 98,450 (313,902) 943,046 Total liabilities from financing activities Ps. 1,591,019 Ps. 184,784 Ps. (1,239) Ps. 219,719 Ps. — Ps. 1,994,283 c) Other financial liabilities 2018 2017 2016 Derivative financial instruments designated as CFH (effective portion recognized within OCI): Zero cost collar options Ps. 122,948 Ps. — Ps. — Interest rate swap contracts — — 14,144 Total financial liabilities Ps. 122,948 Ps. — Ps. 14,144 Presented on the consolidated statements of financial position as follows: Current Ps. 122,948 Ps. — Ps. 14,144 Non-current Ps. — Ps. — Ps. —

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2018
Cash and cash equivalents
Cash and cash equivalents	6. Cash and cash equivalents An analysis of this caption is as follows: 2018 2017 2016 Short-term investments Ps. 4,796,554 Ps. 5,982,314 Ps. 4,433,559 Cash in banks 1,061,150 963,162 2,632,878 Cash on hand 5,238 5,403 4,814 Total cash and cash equivalents Ps. 5,862,942 Ps. 6,950,879 Ps. 7,071,251

Related parties

Related parties	12 Months Ended
	Dec. 31, 2018
Related parties
Related parties	7. Related parties a) An analysis of balances due from/to related parties at December 31, 2018, 2017 and 2016 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: Country Type of transaction of origin 2018 2017 2016 Terms Due from: Frontier Airlines Inc. (“Frontier”) Code-share USA Ps. 8,266 Ps. — Ps. — 30 days Ps. 8,266 Ps. — Ps. — Country Type of transaction of origin 2018 2017 2016 Terms Due to: One Link, S.A. de C.V. (“One Link”) Call center fees El Salvador Ps. — Ps. 24,980 Ps. 33,775 30 days Aeromantenimiento, S.A. (“Aeroman”) Aircraft and engine maintenance El Salvador 15,024 15,951 30,627 30 days Frontier Airlines Inc. (“Frontier”) Code-share USA 2,751 — — 30 days SearchForce, Inc. (“SearchForce”) Internet services Mexico — — 620 30 days Ps. 17,775 Ps. 40,931 Ps. 65,022 b) During the years ended December 31, 2018, 2017 and 2016, the Company had the following transactions with related parties: Related party transactions Country of origin 2018 2017 2016 Revenues: Transactions with affiliates Frontier Code-share USA Ps. 8,358 Ps. — Ps. — Expenses: Transactions with affiliates Aeroman Aircraft and engine maintenance El Salvador/Guatemala Ps. 341,726 Ps. 249,266 Ps. 304,399 One Link, Mijares Angoitia, Servprot and Human Capital Call center fees and other fees Mexico/El Salvador 4,800 202,689 173,197 Aeroman Technical support Mexico/El Salvador/Guatemala 4,796 8,088 8,105 Frontier started having transactions with the Company in September 2018. During the years ended December 31, 2017 and 2016 the Company did not have any revenue transactions with related parties. As of December 31, 2018, 2017 and 2016, there have been no guarantees provided or received for any related party receivables or payables. For the years ended December 31, 2018, 2017 and 2016, no provision for expected credit losses had been recognized. c) Servprot Servprot S.A. de C.V. (“Servprot”) is a related party because Enrique Beltranena, the Company’s Chief Executive Officer and member of the board of directors, and Rodolfo Montemayor, a member of the board of directors, until April 19, 2018 is shareholder of such company. Servprot provides security services for Mr. Beltranena and his family, as well as for Mr. Montemayor. During the years ended December 31, 2018, 2017 and 2016 the Company expensed Ps.2,804, Ps.1,838 and Ps.1,733, respectively for this concept. d) Aeroman Aeroman is a related party because Roberto José Kriete Ávila, a member of the Company’s board of directors, and members of his immediate family are shareholders of Aeroman. The Company entered into an aircraft repair and maintenance service agreement with Aeroman on January 1, 2017. This agreement provides that the Company has to use Aeroman, exclusively for aircraft repair and maintenance services, subject to availability. Under this agreement, Aeroman provides inspection, maintenance, repair and overhaul services for aircraft. The Company makes payments under this agreement depending on the services performed. This agreement is for a 5 years term. As of December 31, 2018, 2017 and 2016, the balances due under the agreement with Aeroman were Ps.15,024, Ps.15,951 and Ps.30,627, respectively. The Company incurred expenses in aircraft, engine maintenance and technical support under this agreement of Ps.346,522, Ps.251,731 and Ps.308,731 for the years ended December 31, 2018, 2017 and 2016, respectively. e) Human Capital International The Company entered into a professional services agreement with Human Capital International HCI, S.A. de C.V., or Human Capital International, on February 25, 2015, for the selection and hiring of executives. Rodolfo Montemayor Garza, member of the Company’s board of directors until April 19, 2018, is a founder and chairman of the board of directors of Human Capital International. As of December 31, 2018, 2017 and 2016, the Company recognized an expense under this agreement of Ps.324, Ps.816 and Ps.3,127, respectively. f) One Link One Link was a related party until December 31, 2017, because Marco Baldocchi, an alternate member of the board, was a director of the Company. Pursuant to this agreement, One Link received calls from the customers to book flights and provides customers with information about fares, schedules and availability. As of December 31, 2017 and 2016, the balance due under this agreement was Ps.24,980 and Ps.33,775, respectively, and the Company recognized an expense under this agreement of Ps.200,035 and Ps.168,337 for the years ended December 31, 2017 and 2016, respectively. g) SearchForce SearchForce is a related party because William Dean Donovan, a member of the board, is a director of the Company. Pursuant to this agreement, SearchForce provides consultation services, reports, findings, analysis or other deliverables to us regarding the software and the implementation of the internet marketing strategy developed to the Company at its request. As of December 31, 2018, 2017 and 2016, the balance due under this agreement was Ps.0, Ps.0 and Ps.620. The Company recognized an expense under this agreement of Ps.0, Ps.1,946 and Ps.3,446 for the years ended December 31, 2018, 2017 and 2016, respectively. h) Mijares, Angoitia, Cortés y Fuentes Mijares, Angoitia, Cortés y Fuentes is a related party because Ricardo Maldonado Yañez and Eugenio Macouzet de León, member and alternate member, respectively, of the board of the Company since April 2018, are partners of Mijares, Angoitia, Cortés y Fuentes. As of December 31, 2018, the balance due under this agreement was Ps.0 and the Company recognized an expense under this agreement of Ps.1,672, for the year ended December 31, 2018. i) Frontier Frontier is a related party because Mr. William A. Franke and Brian H. Franke are members of the board of the Company and Frontier as well as Indigo Partners have significant investments in both Companies. As of December 31, 2018, the net balance due under this agreement was Ps.8,266 and the Company recognized revenue under this agreement of Ps.8,358 for the year ended December 31, 2018. j) Directors and officers During the year ended December 31, 2018, 2017 and 2016, the chairman and the independent members of the Company’s board of directors received an aggregate compensation of approximately Ps.7,178, Ps.8,993 and Ps.7,751, respectively, and the rest of the directors received a compensation of Ps.5,217, Ps.7,834 and Ps.7,308, respectively. During the years ended December 31, 2018, 2017 and 2016, all the Company’s senior managers received an aggregate compensation of short and long-term benefits of Ps.180,001, Ps.134,370 and Ps.160,762, respectively, these amounts were recognized in salaries and benefits in the consolidated statement of operations. For the years ended December 31, 2018, 2017 and 2016 the cost of the share-based payments transactions (MIP and LTIP) were Ps.19,980, Ps.13,508 and Ps.7,816, respectively. Cash-settled payments transactions MIP II and SARs were Ps.(5,238), Ps.(25,498) and Ps.86,100, respectively (Note 17). Starting 2015, the Company adopted a new short-term benefit plan for certain personnel whereby cash bonuses are awarded for meeting certain Company’s performance target. During the years ended December 31, 2018, 2017 and 2016, the Company recorded a provision in the amount of Ps.50,000, Ps.0, and Ps.53,738 respectively.

Other accounts receivable, net

Other accounts receivable, net	12 Months Ended
	Dec. 31, 2018
Other accounts receivable, net
Other accounts receivable, net	8. Other accounts receivable, net An analysis of other accounts receivable at December 31, 2018 and 2017, is detailed below: 2018 2017 2016 Current: Credit cards Ps. 96,646 Ps. 191,322 Ps. 253,374 Benefits from suppliers 68,946 — — Other accounts receivable 101,487 117,582 26,236 Other points of sales 71,054 54,719 23,867 Affinity credit card 55,172 40,517 8,950 Cargo clients 41,408 34,655 29,901 Travel agencies and insurance commissions 39,806 27,925 20,477 Marketing services receivable 7,999 13,435 11,070 Airport services 9,991 5,898 9,479 Employees 27,274 8,878 7,551 Insurance claims — 1,345 55,815 519,783 496,276 446,720 Allowance for credit losses (11,304) (17,809) (19,317) Ps. 508,479 Ps. 478,467 Ps. 427,403 Accounts receivable have the following aging: 2018 2018 Total 2017 2017 Total 2016 2016 Total Days Impaired Not impaired 2018 Impaired Not impaired 2017 Impaired Not impaired 2016 0–30 Ps. 8,725 Ps. 388,644 Ps. 397,369 Ps. 16,962 Ps. 415,847 Ps. 432,809 Ps. 15,723 Ps. 398,721 Ps. 414,444 31–60 — 69,648 69,648 — 38,705 38,705 — 11,231 11,231 61–90 — 27,138 27,138 — 17,918 17,918 — 14,492 14,492 91–120 2,579 23,049 25,628 847 5,997 6,844 3,594 2,959 6,553 Ps. 11,304 Ps. 508,479 Ps. 519,783 Ps. 17,809 Ps. 478,467 Ps. 496,276 Ps. 19,317 Ps. 427,403 Ps. 446,720 The movement in the allowance for credit losses from January 1, 2016 to December 31, 2018 is as follows: Balance as of January 1, 2016 Ps. (24,612) Write-offs 14,459 Increase in allowance (9,164) Balance as of December 31, 2016 (19,317) Write-offs 6,228 Increase in allowance (4,720) Balance as of December 31, 2017 (17,809) Write-offs 17,126 Increase in allowance (10,621) Balance as of December 31, 2018 Ps. (11,304)

Inventories

Inventories	12 Months Ended
	Dec. 31, 2018
Inventories
Inventories	9. Inventories An analysis of inventories at December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Spare parts and accessories of flight equipment Ps. 289,737 Ps. 285,185 Ps. 235,330 Miscellaneous supplies 7,534 9,665 8,554 Ps. 297,271 Ps. 294,850 Ps. 243,884 The inventory items are consumed during or used mainly in delivery of in-flight services and for maintenance services by the Company and are valued at the lower of cost or replacement value. During the years ended as of December 31, 2018, 2017 and 2016, the amount of consumption of inventories, recorded as an operating expense as part of maintenance expense was Ps.290,206, Ps.242,265 and Ps.186,719, respectively.

Prepaid expenses and other curr

Prepaid expenses and other current assets	12 Months Ended
	Dec. 31, 2018
Prepaid expenses and other current assets
Prepaid expenses and other current assets	10. Prepaid expenses and other current assets An analysis of prepaid expenses and other current assets at December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Advances to suppliers Ps. 273,251 Ps. 346,263 Ps. 705,105 Prepaid aircraft rent 274,254 215,784 668,306 Prepaid insurance 76,896 68,712 47,663 Other prepaid expenses 22,682 65,642 33,555 Sales commission to travel agencies (Note 1d) 59,620 54,501 73,413 Advances for constructions of aircraft and engines — 13,764 31,437 Loss on sale and leaseback transactions to be amortized (Note 14) 3,047 3,047 3,047 Ps. 709,750 Ps. 767,713 Ps. 1,562,526

Guarantee deposits

Guarantee deposits	12 Months Ended
	Dec. 31, 2018
Guarantee deposits
Guarantee deposits	11. Guarantee deposits An analysis of this caption at December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Current asset: Aircraft maintenance deposits paid to lessors (Note 1j) Ps. 729,899 Ps. 1,317,663 Ps. 1,145,913 Deposits for rental of flight equipment 1,220 17,178 14,155 Other guarantee deposits 59,516 18,052 7,141 790,635 1,352,893 1,167,209 Non-current asset: Aircraft maintenance deposits paid to lessors (Note 1j) 5,765,122 5,631,304 5,951,831 Deposits for rental of flight equipment 531,261 441,110 589,804 Other guarantee deposits 41,113 25,838 18,243 6,337,496 6,098,252 6,559,878 Ps. 7,128,131 Ps. 7,451,145 Ps. 7,727,087

Rotable spare parts, furniture

Rotable spare parts, furniture and equipment, net	12 Months Ended
	Dec. 31, 2018
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net	12. Rotable spare parts, furniture and equipment, net Gross value Accumulated depreciation Net carrying value At December At December At December At December At December At December At December At December At December 31, 2018 31, 2017 31, 2016 31, 2018 31, 2017 31, 2016 31, 2018 31, 2017 31, 2016 Leasehold improvements to flight equipment Ps. 3,221,167 Ps. 2,382,687 Ps. 1,709,868 Ps. (2,083,053) Ps. (1,769,589) Ps. (1,386,844) Ps. 1,138,114 Ps. 613,098 Ps. 323,024 Pre-delivery payments 3,672,090 2,783,303 1,206,330 — — — 3,672,090 2,783,303 1,206,330 Aircraft parts and rotable spare parts 609,232 506,735 393,522 (233,403) (181,091) (137,712) 375,829 325,644 255,810 Aircraft spare engines 323,410 323,410 323,025 (34,917) (18,132) (1,337) 288,493 305,278 321,688 Construction and improvements in process 142,738 193,607 255,374 — — — 142,738 193,607 255,374 Standardization 203,611 192,808 176,975 (127,136) (113,407) (94,864) 76,475 79,401 82,111 Constructions and improvements 132,446 131,503 120,886 (117,211) (106,335) (85,873) 15,235 25,168 35,013 Computer equipment 44,563 30,113 24,172 (28,016) (20,790) (16,972) 16,547 9,323 7,200 Workshop tools 23,454 20,500 20,500 (20,085) (18,229) (15,915) 3,369 2,271 4,585 Electric power equipment 15,438 15,439 14,818 (10,316) (9,185) (7,890) 5,122 6,254 6,928 Communications equipment 12,305 11,229 9,261 (7,394) (6,502) (5,706) 4,911 4,727 3,555 Workshop machinery and equipment 9,530 8,405 7,240 (5,049) (4,345) (3,622) 4,481 4,060 3,618 Motorized transport equipment platform 5,496 5,587 5,703 (5,050) (4,701) (4,346) 446 886 1,357 Service carts on board 5,403 5,403 5,403 (5,277) (5,021) (4,645) 126 382 758 Office furniture and equipment 66,546 44,749 36,310 (28,240) (22,454) (18,653) 38,306 22,295 17,657 Total Ps. 8,487,429 Ps. 6,655,478 Ps. 4,309,387 Ps. (2,705,147) Ps. (2,279,781) Ps. (1,784,379) Ps. 5,782,282 Ps. 4,375,697 Ps. 2,525,008 *During the years ended December 31, 2018, 2017 and 2016, the Company capitalized borrowing costs of Ps.357,920, Ps.193,389 and Ps.95,445, respectively. The amount of this line is net of disposals of capitalized borrowing costs related to sale and leaseback transactions of Ps.242,678, Ps.110,274 and Ps.84,936, respectively. Motorized Workshop Aircraft parts Constructions transport machinery Service Construction and Leasehold and rotable spare Aircraft spare and Computer Office furniture Electric power Workshop equipment Communications and carts on Pre-delivery improvements improvements to parts Engines improvements Standardization equipment and equipment equipment Tools platform equipment equipment board payments in process flight equipment Total Net book amount as of December 31, 2015 Ps. 179,947 Ps. — Ps. 18,202 Ps. 83,886 Ps. 4,195 Ps. 12,932 Ps. 9,033 Ps. 4,815 Ps. 1,326 Ps. 3,764 Ps. 4,179 Ps. 1,453 Ps. 1,583,835 Ps. 140,926 Ps. 501,157 Ps. 2,549,650 Additions 110,592 323,025 2,218 21,953 740 517 1,467 4,217 505 129 131 36 1,345,081 161,560 226,526 2,198,697 Disposals and transfers (1,299) — — — — (110) (1,626) — (49) — — — (1,733,093) (2,132) — (1,738,309) Borrowing costs, net* — — — — — — — — — — — — 10,507 — — 10,507 Other movements — — 32,441 — 4,814 7,877 — 25 46 493 — — — (44,980) — 716 Depreciation (33,430) (1,337) (17,848) (23,728) (2,549) (3,559) (1,946) (4,472) (471) (831) (692) (731) — — (404,659) (496,253) As of December 31, 2016 255,810 321,688 35,013 82,111 7,200 17,657 6,928 4,585 1,357 3,555 3,618 758 1,206,330 255,374 323,024 2,525,008 Cost 393,522 323,025 120,886 176,975 24,172 36,310 14,818 20,500 5,703 9,261 7,240 5,403 1,206,330 255,374 1,709,868 4,309,387 Accumulated depreciation (137,712) (1,337) (85,873) (94,864) (16,972) (18,653) (7,890) (15,915) (4,346) (5,706) (3,622) (4,645) — — (1,386,844) (1,784,379) Net book amount as of December 31, 2016 Ps. 255,810 Ps. 321,688 Ps. 35,013 Ps. 82,111 Ps. 7,200 Ps. 17,657 Ps. 6,928 Ps. 4,585 Ps. 1,357 Ps. 3,555 Ps. 3,618 Ps. 758 Ps. 1,206,330 Ps. 255,374 Ps. 323,024 Ps. 2,525,008 Additions 115,173 385 — 15,833 1,845 6,805 — — — — 123 — 1,707,805 206,932 529,331 2,584,232 Disposals and transfers (930) — — — — (15) — — — — — — (213,947) (3,555) (101,224) (319,671) Borrowing costs, net* — — — — — — — — — — — — 83,115 — — 83,115 Other movements — — 10,371 — 4,087 1,649 620 — — 1,968 1,041 — — (265,144) 244,712 (696) Depreciation (44,409) (16,795) (20,216) (18,543) (3,809) (3,801) (1,294) (2,314) (471) (796) (722) (376) — — (382,745) (496,291) As of December 31, 2017 325,644 305,278 25,168 79,401 9,323 22,295 6,254 2,271 886 4,727 4,060 382 2,783,303 193,607 613,098 4,375,697 Cost 506,735 323,410 131,503 192,808 30,113 44,749 15,439 20,500 5,587 11,229 8,405 5,403 2,783,303 193,607 2,382,687 6,655,478 Accumulated depreciation (181,091) (18,132) (106,335) (113,407) (20,790) (22,454) (9,185) (18,229) (4,701) (6,502) (4,345) (5,021) — — (1,769,589) (2,279,781) Net book amount as of December 31, 2017 Ps. 325,644 Ps. 305,278 Ps. 25,168 Ps. 79,401 Ps. 9,323 Ps. 22,295 Ps. 6,254 Ps. 2,271 Ps. 886 Ps. 4,727 Ps. 4,060 Ps. 382 Ps. 2,783,303 Ps. 193,607 Ps. 613,098 Ps. 4,375,697 Additions 106,240 260,131 689 10,803 5,316 652 — 2,673 — 1,050 1,040 — 1,485,643 142,703 676,457 2,693,397 Disposals and transfers (1,735) (260,131) — — — — — — — — (2) — (712,098) (89) — (974,055) Borrowing costs, net* — — — — — — — — — — — — 115,242 — — 115,242 Other movements — — 67 — 9,123 21,568 — 281 42 26 110 — — (193,483) 162,023 (243) Depreciation (54,320) (16,785) (10,689) (13,729) (7,215) (6,209) (1,132) (1,856) (482) (892) (727) (256) — — (313,464) (427,756) As of December 31, 2018 375,829 288,493 15,235 76,475 16,547 38,306 5,122 3,369 446 4,911 4,481 126 3,672,090 142,738 1,138,114 5,782,282 Cost 609,232 323,410 132,446 203,611 44,563 66,546 15,438 23,454 5,496 12,305 9,530 5,403 3,672,090 142,738 3,221,167 8,487,429 Accumulated depreciation (233,403) (34,917) (117,211) (127,136) (28,016) (28,240) (10,316) (20,085) (5,050) (7,394) (5,049) (5,277) — — (2,083,053) (2,705,147) Net book amount as of December 31, 2018 Ps. 375,829 Ps. 288,493 Ps. 15,235 Ps. 76,475 Ps. 16,547 Ps. 38,306 Ps. 5,122 Ps. 3,369 Ps. 446 Ps. 4,911 Ps. 4,481 Ps. 126 Ps. 3,672,090 Ps. 142,738 Ps. 1,138,114 Ps. 5,782,282 a) Depreciation expense for the years ended December 31, 2018, 2017 and 2016, was Ps.427,756, Ps.496,291 and Ps.496,253, respectively. Depreciation charges for the year are recognized as a component of operating expenses in the consolidated statements of operations. b) In October 2005 and December 2006, the Company entered into purchase agreements with Airbus and International Aero Engines AG (“IAE”) for the purchase of aircraft and engines, respectively. Under such agreements and prior to the delivery of each aircraft and engine, the Company agreed to make pre-delivery payments, which were calculated based on the reference price of each aircraft and engine, and following a formula established for such purpose in the agreements. In 2011, the Company amended the agreement with Airbus for the purchase of 44 A320 family aircraft to be delivered from 2015 to 2020. The new order includes 14 A320CEO and 30 A320NEO. On August 16, 2013, the Company entered into certain agreements with IAE and United Technologies Corporation Pratt & Whitney Division (“P&W”), which included the purchase of the engines for 14 A320CEO and 30 A320NEO respectively, to be delivered between 2014 and 2020. This agreement also included the purchase of one spare engine for the A320CEO fleet (which was received during the fourth quarter of 2016) and six spare engines for the A320NEO fleet to be received from 2017 to 2020. In November 2015, the Company amended the agreement with the engine supplier to provide major maintenance services for the engines of sixteen aircrafts (10 A320NEO and 6 A321NEO). This agreement also includes the purchase of three spare engines, two of them for the A320NEO fleet, and one for the A321NEO fleet. The Company received credit notes from P&W in December 2017 of Ps.58,530 (US$3.06 million), which are being amortized on a straight-line basis, prospectively during the term of the agreement. As of December 31, 2018, and 2017, the Company amortized a corresponding benefit from these credit notes of Ps.4,878 and Ps.1,219, respectively, which is recognized as an offset to maintenance expenses in the consolidated statements of operations. Additionally, during December 2017, the Company amended the agreement with Airbus for the purchase of 80 A320 family aircraft to be delivered from 2022 to 2026. The new order includes 46 A320NEO and 34 A321NEO. Under such agreement and prior to the delivery of each aircraft, the Company agreed to make pre-delivery payments, which shall be calculated based on the reference price of each aircraft, and following a formula established for such purpose in the agreement. In November 2018, the Company amended the agreement with Airbus to reschedule the remaining 26 fleet deliveries between 2019 and 2022. During the years ended December 31, 2018, 2017 and 2016, the amounts paid for aircraft and spare engine pre-delivery payments were of Ps.1,485,643 (US$77.1 million), Ps.1,707,805 (US$90.0 million) and Ps.1,345,081 (US$82.7 million), respectively. The current purchase agreement with Airbus requires the Company to accept delivery of 106 Airbus A320 family aircraft during the following nine years (from January 2019 to November 2026). The agreement provides for the addition of 106 Aircraft to its fleet as follows: three in 2019, eight in 2020, thirteen in 2021, thirteen in 2022, sixteen in 2023, thirteen in 2024, fifteen in 2025 and twenty-five in 2026 Commitments to acquisitions of property and equipment are disclosed in Note 23. During the years ended December 31, 2018, 2017 and 2016 the Company entered into aircraft and spare engines sale and leaseback transactions, resulting in a gain of Ps.609,168, Ps.65,886 and Ps.484,827, respectively, that was recorded under the caption other income in the consolidated statement of operations (Note 20). During the year ended December 31, 2011, the Company entered into aircraft and spare engines sale and leaseback transactions, which resulted in a loss of Ps.30,706. This loss was deferred on the consolidated statements of financial position and is being amortized over the contractual lease term. As of December 31, 2018, 2017 and 2016, the current portion of the loss on sale amounts to Ps.3,047, Ps.3,047 and Ps.3,047, respectively recorded in the consolidated statement of operations as additional aircraft rental expense, that is recorded in the caption of prepaid expenses and other current assets (Note 10), and the non-current portion amounts to Ps.8,366, Ps.11,413 and Ps.14,460, respectively, which is recorded in the caption of other assets in the consolidated statements of financial position. c) On August 27, 2012, the Company entered into a total support agreement with Lufthansa Technik AG (“LHT”) for a five-year term. This agreement includes a total component support agreement (power-by-the hour) and guarantees the availability of aircraft components for the Company’s fleet when they are required. The cost of the total component support agreement is recognized as maintenance expenses in the consolidated statement of operations. As part of the original total support agreement with LHT, the Company received credit notes of Ps.46,461 (US$3.5 million), which were amortized on a straight-line basis, during the term of the agreement. As of December 31, 2018, 2017 and 2016, the Company amortized a corresponding benefit from these credit notes of Ps.0, Ps.6,580 and Ps.9,292, respectively, which was recognized as an offset to maintenance expenses in the consolidated statements of operations. During December 2017, the Company entered into a new total support agreement with Lufthansa for 66 months, with an effective date on July 1, 2018. This agreement includes similar terms and conditions as the original agreement. As part of the new agreement, the Company received credit notes of Ps.28,110 (US$1.5 million), which are being amortized on a straight-line basis, prospectively during the term of the agreement. As of December 31, 2018, the Company amortized a corresponding benefit from these credit notes of Ps.7,191, recognized as an offset to maintenance expenses in the consolidated statements of operations. d) On October 12, 2016 and December 12, 2016, the Company acquired two aircraft spare engines, which were accounted for at cost for a total amount of Ps.323,025. The assets contain two major components which are assumed to have different useful lives, the limited life parts (LLPs) have an estimated useful life of 12 years, and the rest of the aircraft engine has an estimated useful life of 25 years. The Company identified the major components as separate parts at their respective cost. These major components of the spare engines are presented as part of the aircraft spare engines and depreciated over their useful life.

Intangible assets, net

Intangible assets, net	12 Months Ended
	Dec. 31, 2018
Intangible assets, net
Intangible assets, net	13. Intangible assets, net The composition and movement of intangible assets is as follows: Useful Gross value Accumulated amortization Net carrying amount life At December 31, years 2018 2017 2016 2018 2017 2016 2018 2017 2016 Software 1 - 4 s Ps. 503,467 Ps. 441,803 Ps. 313,028 Ps. (324,343) Ps. (251,383) Ps. (198,987) Ps. 179,124 Ps. 190,420 Ps. 114,041 Balance as of January 1, 2016 Ps. 94,649 Additions 60,792 Disposals (1,277) Amortization (40,290) Exchange differences 167 Balance as of January 1, 2017 114,041 Additions 130,908 Disposals (1,976) Amortization (52,396) Exchange differences (157) Balance as of December 31, 2017 190,420 Additions 71,007 Disposals (9,368) Amortization (72,885) Exchange differences (50) Balance as of December 31, 2018 Ps. 179,124 Software amortization expense for the years ended December 31, 2018, 2017 and 2016 was Ps.72,885, Ps.52,396 and Ps.40,290, respectively. These amounts were recognized in depreciation and amortization in the consolidated statements of operations.

Operating leases

Operating leases	12 Months Ended
	Dec. 31, 2018
Operating leases
Operating leases	14. Operating leases The most significant operating leases are as follows: a) Aircraft and engine rent. At December 31, 2018, the Company leases 77 aircraft (71 and 69 as of December 31, 2017 and 2016, respectively) and 10 spare engines under operating leases (8 and 11 as of December 31, 2017 and 2016, respectively) that have maximum terms through 2032. Rents are guaranteed by deposits in cash or letters of credit. The aircraft lease agreements contain certain covenants to which the Company is bound. The most significant covenants include the following: (i) Maintain the records, licenses and authorizations required by the competent aviation authorities and make the corresponding payments. (ii) Provide maintenance services to the equipment based on the approved maintenance program. (iii) Maintain insurance policies on the equipment for the amounts and risks stipulated in each agreement. (iv) Periodic submission of financial and operating information to the lessors. (v) Comply with the technical conditions relative to the return of aircraft. As of December 31, 2018, 2017 and 2016, the Company was in compliance with the covenants under the above mentioned aircraft lease agreements. Composition of the fleet and spare engines, operating leases*: At December At December At December Aircraft Type Model 31, 2018 31, 2017 31, 2016 A319 132 4 6 6 A319 133 4 6 9 A320 233 39 39 39 A320 232 4 4 4 A320NEO 271N 12 6 1 A321 231 10 10 10 A321NEO 271N 4 — — 77 71 69 At December At December At December Engine Type Model 31, 2018 31, 2017 31, 2016 V2500 V2527M-A5 3 3 3 V2500 V2527E-A5 3 3 4 V2500 V2527-A5 2 2 4 PW1100 PW1127G-JM 2 — — 10 8 11 * Certain of the Company’s aircraft and engine lease agreements include an option to extend the lease term period. Terms and conditions are subject to market conditions at the time of renewal. During the year ended December 31, 2018, the Company incorporated ten new aircraft to its fleet (three of them based on the terms of the Airbus purchase agreement and seven from a lessor´s order book). These new aircraft lease agreements were accounted as operating leases. Also, the Company extended the lease term of two aircraft (effective from 2019) and two spare engines (effective from February and April 2018), and returned four aircraft to their respective lessors. During the year ended December 31, 2018, the Company also incorporated two NEO spare engines to its fleet based on the terms of the Pratt and Whitney purchase agreement (FMP). These two engines incorporated were subject to sale and leaseback transactions and their respective lease agreements were accounted as operating leases. During the year ended December 31, 2017, the Company incorporated five aircraft to its fleet (one of them based on the terms of the Airbus purchase agreement and four from a lessor´s order book). These new aircraft lease agreements were accounted for as operating leases. Also, the Company returned three aircraft to their respective lessors. All the aircraft incorporated through the lessor´s aircraft order book were not subject to sale and leaseback transactions. Additionally, during 2017 the Company extended the lease term of three aircraft (effective from 2018) and two spare engines (effective from July 2017 and September 2017, respectively). Such leases were accounted for as operating leases and were not subject to sale and leaseback transactions. During the year ended December 31, 2016, the Company incorporated 17 aircraft to its fleet (eight of them based on the terms of the Airbus purchase agreement and 9 from a lessor’s aircraft order book). These new aircraft lease agreements were accounted for as operating leases. Also, the Company returned four aircraft to their respective lessors. All the aircraft incorporated through the lessor’s aircraft order book were not subject to sale and leaseback transactions. Additionally, during 2016 the Company extended the lease term of two aircraft effective from 2016 and entered into certain agreements with different lessors to lease five spare engines which were received during the same period. Such leases were accounted for as operating leases and were not subject to sale and leaseback transactions. During 2016, the Company purchased two spare engines, which were accounted as part of the property, plant and equipment (See Note 12). As of December 31, 2018, 2017 and 2016, all of the Company’s aircraft and spare engines lease agreements were accounted for as operating leases. Provided below is an analysis of future minimum aircraft and engine lease payments in U.S. dollars and its equivalent in Mexican pesos: Aircraft operating leases Engine operating leases in Mexican in Mexican in U.S. dollars pesos (1) in U.S. dollars pesos (1) 2019 US$ 301,632 Ps. 5,936,992 US$ 7,314 Ps. 143,961 2020 296,205 5,830,173 6,694 131,757 2021 288,462 5,677,769 6,537 128,667 2022 275,451 5,421,674 6,064 119,357 2023 238,970 4,703,623 5,066 99,714 2024 and thereafter 897,251 17,660,502 5,121 100,796 Total US$ 2,297,971 Ps. 45,230,733 US$ 36,796 Ps. 724,252 (1) Using the exchange rate as of December 31, 2018 of Ps. 19.6829 Such amounts are determined based on the stipulated rent contained within the agreements without considering renewals and using the prevailing exchange rate and interest rates at December 31, 2018. b) Rental of land and buildings. The Company has entered into land and property lease agreements with third parties for the premises where it provides its services and where its offices are located. These leases are recognized as operating leases. Provided below is an analysis of future minimum land and building lease payments denominated in U.S. dollars or Mexican pesos as established in the respective lease agreements: Operating leases Equivalent in Operating leases denominated in Mexican denominated in U.S. dollars pesos* Mexican pesos 2019 US$ 9,754 Ps. 191,989 Ps. 131,166 2020 6,017 118,428 88,237 2021 3,111 61,243 16,114 2022 1,763 34,691 13,302 2023 721 14,201 10,108 2024 and thereafter 3,534 69,553 33,459 Total US$ 24,900 Ps. 490,105 Ps. 292,386 *Convenience translation to U.S. dollars (Ps. 19.6829) c) Rental expense charged to results of operations is as follows: 2018 2017 2016 Aircraft and engine (Note 1p) Ps. 6,314,930 Ps. 6,072,502 Ps. 5,590,058 Real estate: Airports facilities 56,288 44,251 40,591 Offices, maintenance warehouse and hangar (Note 20) 36,483 30,544 33,517 Total rental expenses on real estate 92,771 74,795 74,108 Total cost of operating leases Ps. 6,407,701 Ps. 6,147,297 Ps. 5,664,166 During the years ended December 31, 2018, 2017 and 2016 the Company entered into aircraft and spare engines sale and leaseback transactions, resulting in a gain of Ps.609,168, Ps.65,886 and Ps.484,827, respectively, that was recorded under the caption other income in the consolidated statement of operations (Note 20). During the year ended December 31, 2011, the Company entered into aircraft and spare engines sale and leaseback transactions, which resulted in a loss of Ps.30,706. This loss was deferred in the consolidated statements of financial position and is being amortized over the contractual lease term. As of December 31, 2018, 2017 and 2016, the current portion of the loss on sale amounts to Ps.3,047 each year, which is recorded in the caption of prepaid expenses and other current assets (Note 10), and the non-current portion amounts to Ps.8,366, Ps.11,413 and Ps.14,460, respectively, which is recorded in the caption of other assets in the consolidated statements of financial position. For each of the years ended December 31, 2018, 2017 and 2016, the Company amortized a loss of Ps.3,047, as additional aircraft rental expense.

Accrued liabilities

Accrued liabilities	12 Months Ended
	Dec. 31, 2018
Accrued liabilities
Accrued liabilities	15. Accrued liabilities a) An analysis of accrued liabilities at December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Fuel and traffic accrued expenses Ps. 1,315,363 Ps. 1,106,913 Ps. 922,607 Maintenance and aircraft parts accrued expenses 79,280 194,366 130,897 Sales, marketing and distribution accrued expenses 283,538 143,758 102,880 Maintenance deposits 141,371 132,519 179,288 Salaries and benefits 187,072 114,781 170,994 Accrued administrative expenses 67,306 90,459 80,981 Aircraft and engine lease extension benefit (Note 1j) 50,796 83,047 85,124 Deferred revenue from VClub membership 59,557 76,261 32,771 Information and communication accrued expenses 45,008 44,638 32,950 Supplier services agreement 10,634 10,634 6,333 Depositary services benefit — 1,473 2,068 Advances from travel agencies 482 650 1,536 Others 77,985 51,474 37,010 Ps. 2,318,392 Ps. 2,050,973 Ps. 1,785,439 b) Accrued liabilities long-term: 2018 2017 2016 Aircraft and engine lease extension benefit (Note 1j) Ps. 61,730 Ps. 107,400 Ps. 127,831 Supplier services agreement 66,539 77,174 4,350 Depositary services benefit — — 1,473 Other 8,964 15,274 36,154 Ps. 137,233 Ps. 199,848 Ps. 169,808 c) An analysis of other liabilities is as follows: Balance as of Balance as of January 1, Increase for December 31, 2018 the year Payments 2018 Aircraft lease return obligation Ps. 488,383 Ps. 774,614 Ps. 832,323 Ps. 430,674 Employee profit sharing (Note 16) 9,063 14,106 8,185 14,984 Ps. 497,446 Ps. 788,720 Ps. 840,508 Ps. 445,658 Short-term maturities Ps. 117,724 Long-term Ps. 327,934 Balance as of Balance as of January 1, Increase for December 31, 2017 the year Payments 2017 Aircraft lease return obligation Ps. 410,060 Ps. 937,982 Ps. 859,659 Ps. 488,383 Employee profit sharing (Note 16) 10,695 8,342 9,974 9,063 Ps. 420,755 Ps. 946,324 Ps. 869,633 Ps. 497,446 Short-term maturities Ps. 280,744 Long-term Ps. 216,702 Balance as of Balance as of January 1, Increase for December 31, 2016 the year Payments 2016 Aircraft lease return obligation Ps. 149,326 Ps. 1,025,757 Ps. 765,023 Ps. 410,060 Employee profit sharing (Note 16) 10,173 9,967 9,445 10,695 Ps. 159,499 Ps. 1,035,724 Ps. 774,468 Ps. 420,755 Short-term maturities Ps. 284,200 Long-term Ps. 136,555 During the years ended December 31, 2018, 2017 and 2016 no cancellations or write-offs related to these liabilities were recorded.

Employee benefits

Employee benefits	12 Months Ended
	Dec. 31, 2018
Employee benefits
Employee benefits	16. Employee benefits The components of net period cost recognized in the consolidated statement of operations and the obligations for seniority premium for the years ended December 31, 2018, 2017 and 2016, are as follows: 2018 2017 2016 Analysis of net period cost: Current service cost Ps. 4,977 Ps. 3,657 Ps. 2,421 Interest cost on benefit obligation 1,424 1,000 701 Net period cost Ps. 6,401 Ps. 4,657 Ps. 3,122 Changes in the defined benefit obligation are as follows: 2018 2017 2016 Defined benefit obligation at January 1, Ps. 19,289 Ps. 13,438 Ps. 10,056 Net period cost charged to profit or loss: Current service cost 4,977 3,657 2,421 Interest cost on benefit obligation 1,423 1,000 701 Remeasurement losses in other comprehensive income: Actuarial changes arising from changes in assumptions (5,989) 1,776 442 Payments made (1,547) (582) (182) Defined benefit obligation at December 31, Ps. 18,153 Ps. 19,289 Ps. 13,438 The significant assumptions used in the computation of the seniority premium obligations are shown below: 2018 2017 2016 Financial: Discount rate 9.91 % 7.72 % 7.78 % Expected rate of salary increases 5.65 % 5.50 % 5.50 % Annual increase in minimum salary 4.15 % 4.00 % 4.00 % Biometric: Mortality (1) EMSSA 09 EMSSA 09 EMSSA 09 Disability (2) IMSS-97 IMSS-97 IMSS-97 (1) Mexican Experience of social security (EMSSA). (2) Mexican Experience of Instituto Mexicano del Seguro Social (IMSS). Accruals for short-term employee benefits at December 31, 2018, 2017 and 2016, respectively, are as follows: 2018 2017 2016 Employee profit-sharing (Note 15c) Ps. 14,984 Ps. 9,063 Ps. 10,695 The key management personnel of the Company include the members of the Board of Directors (Note 7).

Share-based payments

Share-based payments	12 Months Ended
	Dec. 31, 2018
Share-based payments
Share-based payments	17. Share-based payments a) LTRP On November 6, 2014, the shareholders of the Company and the shareholders of its subsidiary Servicios Corporativos, approved an amendment to the current LTRP for the benefit of certain key employees, based on the recommendations of the Board of Directors of the Company at its meetings held on July 24 and August 29, 2014. For such purposes on November 10, 2014 an irrevocable Administrative Trust was created by Servicios Corporativos and the key employees. The new plan was restructured and named LTIP, which consists of a share purchase plan (equity-settled transaction) and SARs plan (cash settled). On October 18, 2018, the Board of Directors of the Company approved a new long-term retention plan LTRP for certain executives of the Company, through which the beneficiaries of the plan, will receive shares of the Company once the service conditions are met. This plan does not include cash compensations granted through appreciation rights on the Company's shares. The retention plans granted in previous periods under LTRP will continue in full force and effect until their respective due dates and the cash compensation derived from them will be settled according to the conditions established in each plan. b) LTIP ● Share purchase plan (equity-settled) Under the share purchase plan (equity- settled), in November 2014 certain key employees of the Company were granted with a special bonus by an amount of Ps.10,831, to be used to purchase Company’s shares. The plan consisted in: (i) Servicios Corporativos granted a bonus to each key executive; (ii) The bonus amount by Ps.7,059, net of withheld taxes, was transferred on November 11, 2014, as per the written instructions of each key employees, to the Administrative Trust for the acquisition of Series A shares of the Company through an intermediary authorized by the BMV based on the Administration Trust’s Technical Committee instructions; (iii) Subject to specified terms and conditions set forth in the Administrative Trust, the acquired shares were in escrow under the Administrative Trust for its administration until the vesting period date for each key executive, date as of which the key executive can fully dispose of the shares and instruct as desired. (iv) The share purchase plan provides that if the terms and conditions are not met by the vesting period date, then the shares would be sold in the BMV, and Servicios Corporativos would be entitled to receive the proceeds of the sale of shares. (v) The key employees’ account balance will be tracked by the Administrative Trust. The Administrative Trust’s objectives are to acquire Series A shares on behalf of the key employees and to manage the shares granted to such key executive based on instructions set forth by the Technical Committee. As the Administrative Trust is controlled and therefore consolidated by Controladora, shares purchased in the market and held within the Administrative Trust are presented for accounting purposes as treasury stock in the consolidated statement of changes in equity. In November 2018 and 2017, April and October 2016, extensions to the LTIP were approved by the Company’s shareholder’s and Company’s Board of Directors, respectively. The total cost of the extensions approved were Ps.63,961 (Ps.41,590 net of withheld taxes), Ps.15,765 (Ps.10,108 net of withheld taxes), Ps.14,532 (Ps.9,466 net of withheld taxes), and Ps.11,599 (Ps.7,559 net of withheld taxes), respectively. Under the terms of the incentive plan, certain key employees of the Company were granted a special bonus that was transferred to the Administrative Trust for the acquisition of Series A shares of the Company. As of December 31, 2018, 2017 and 2016, the number of shares into the Administrative Trust associated with the Company’s share purchase payment plans is as follows: Number of Series A shares Outstanding as of December 31, 2015 617,001 Purchased during the year 513,002 Granted during the year — Exercised/vested during the year (425,536) Forfeited during the year (86,419) Outstanding as of December 31, 2016 618,048 * Purchased during the year 547,310 Granted during the year — Exercised/vested during the year (345,270) Forfeited during the year — Outstanding as of December 31, 2017 820,088 * Purchased during the year 3,208,115 Granted during the year — Exercised/vested during the year (353,457) Forfeited during the year (121,451) Outstanding as of December 31, 2018 3,553,295 * *These shares are presented as treasury shares in the consolidated statement of financial position as of December 31, 2018, 2017 and 2016. The vesting period of the shares granted under the Company’s share purchase plans is as follows: Number of Series A shares Vesting period 1,284,373 November 2018 - 2019 1,207,862 November 2019 - 2020 1,061,060 November 2020 - 2021 3,553,295 In accordance with IFRS 2, the share purchase plans are classified as equity-settled transactions on the grant date. This valuation is the result of multiplying the total number of Series A shares deposited in the Administrative Trust and the price per share, plus the balance in cash deposited in the Administrative Trust. For the years ended December 31, 2018, 2017 and 2016, the compensation expense recorded in the consolidated statement of operations amounted to Ps.19,980, Ps.13,508 and Ps.7,816, respectively. All shares held in the Administrative Trust are considered outstanding for both basic and diluted (loss) earnings per share purposes, since the shares are entitled to dividend if and when declared by the Company. During 2018 2017 and 2016, some key employees left the Company; therefore, the vesting conditions were not fulfilled. In accordance with the terms of the plan, Servicios Corporativos is entitled to receive the proceeds of the sale of such shares; the number of forfeited shares as of December 31, 2018 was (121,451). ● SARs (cash settled) On November 6, 2014, the Company granted 4,315,264 SARs to key employees that entitle them to a cash payment and vest as long as the employee continues to be employed by the Company at the end of each anniversary, during a 3 years period. The total amount of the appreciation rights granted under this plan at the grant date was Ps.10,831 at such date. Under the LTIP extensions, the number of SARs granted to certain key executives of the Company were 0, 3,965,351 and 2,044,604, which amounts to Ps.0, Ps.15,765 and Ps.14,532, for the years ended December 31, 2018, 2017 and 2016, respectively. The SARs vest as long as the employee continues to be employed by the Company at the end of each anniversary, during a three years period. Fair value of the SARs is measured at each reporting date. The carrying amount of the liability relating to the SARs as of December 31, 2018, 2017 and 2016 were Ps.537, Ps.723 and Ps.15,744, respectively. The compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits over the service period. During the years ended December 31, 2018, 2017 and 2016, the Company recorded a (benefit) expense of Ps.(186), Ps.(8,999) and Ps.31,743, respectively, in the consolidated statement of operations. The fair value of these SARs is estimated at the grant date and at each reporting date using the Black-Scholes option pricing model, taking into account the terms and conditions on which the SARs were granted (vesting schedule in tables below). Number of SARs Exercisable date 1,348,777 November 2019 757,809 November 2020 2,106,586 * * Includes forfeited SARs of 484,656, 145,769 and 0 for the years ended December 31, 2018, 2017 and 2016, respectively. During the years ended December 31, 2018, 2017 and 2016, the Company made a cash payment to key employees related to the SARs plan in the amount of Ps.0, Ps.6,021 and Ps.31,261, respectively. Such payments were determined based on the increase in the share price of the Company from the grant date to the exercisable date. c) MIP ● MIP I In April 2012, the Board of Directors authorized a MIP for the benefit of certain key employees, subject to shareholders’ approval. On December 21, 2012, the shareholders approved the MIP consisting of: (i) the issuance of an aggregate of 25,164,126 Series A and Series B shares, representing 3.0% of the Company’s fully diluted capital stock; (ii) a grant of options to acquire shares of the Company or CPOs having shares as underlying securities for which, as long as certain conditions occur, the employees will have the right to request the delivery of those shares (iii) the creation of an Administrative Trust to deposit such shares in escrow until they are delivered to the officers or returned to the Company in the case that certain conditions do not occur; and (iv) the execution of share sale agreements setting forth the terms and conditions upon which the officers may exercise its shares at Ps.5.31 (five Mexican pesos 31/100) per share. On December 24, 2012, the Administrative Trust was created and the share sale agreements were executed. On December 27, 2012, the trust borrowed Ps.133,723 from the Company and immediately after; the trust paid the Company the same amount borrowed as purchase price for the shares. The share sale agreements provide that the officers may pay for the shares at the same price upon the occurrence of either an initial public offering of the Company’s capital stock or a change of control and as long as they remain employees until the options are exercised, with a maximum term of ten years. Upon payment of the shares by the officers to the Management Trust, it has to pay such amount back to the Company as repayment of the loan, for which the Company charges no interest. The MIP has been classified as equity-settled, by which, the grant date, fair value is fixed and is not adjusted by subsequent changes in the fair value of capital instruments. Equity-settled transactions are measured at fair value at the date the equity benefits are conditionally granted to employees. The total cost of the MIP determined by the Company was Ps.2,722 to be recognized from the time it becomes probable the performance condition will be met over the vesting period. Total cost of the MIP related to the vested shares has been fully recognized in the consolidated statements of operations during the vesting years. This cost was determined by using the improved Binomial valuation model from Hull and White, on the date in which the plan had already been approved by the shareholders and a shared understanding of the terms and conditions of the plan was reached with the employees (December 24, 2012, defined as the grant date), with the following assumptions: 2012 Dividend yield (%) 0.00 % Volatility (%) 37.00 % Risk–free interest rate (%) 5.96 % Expected life of share options (years) 8.8 Exercise share price (in Mexican pesos Ps.) 5.31 Exercise multiple 1.1 Fair value of the stock at grant date 1.73 The expected volatility reflects the assumption that the historical volatility of comparable companies is indicative of future trends, which may not necessarily be the actual outcome. Under the methodology followed by the Company, at the grant date and December 31, 2012, the granted shares had no positive intrinsic value. In 2018, 2017 and 2016, the key employees exercised 2,003,876, 120,000 and 3,299,999 Series A shares. As a result, the key employees paid Ps.10,654, Ps.638 and Ps.17,536 for the years ended December 31, 2018, 2017 and 2016, respectively, to the Management Trust corresponding to the exercised shares. Thereafter, the Company received from the Management Trust the payment related to the exercised shares by the key employees as a repayment of the loan between the Company and the Management Trust. Movements in share options The following table illustrates the number of shares options and fixed exercise prices during the year: Total in Number of share Exercise price thousands of options in Mexican pesos Mexican pesos Outstanding as of December 31, 2015 15,857,856 Ps. 5.31 Ps. 84,269 Granted during the year — — — Forfeited during the year — — — Exercised during the year (3,299,999) 5.31 (17,536) Outstanding as of December 31, 2016 12,557,857 Ps. 5.31 Ps. 66,733 Granted during the year — — — Forfeited during the year — — — Exercised during the year (120,000) 5.31 (638) Outstanding as of December 31, 2017 12,437,857 Ps. 5.31 Ps. 66,095 Granted during the year — — — Forfeited during the year — — — Exercised during the year (2,003,876) 5.31 (10,654) Outstanding as of December 31, 2018 10,433,981 Ps. 5.31 Ps. 55,441 At December 31, 2018, 2017 and 2016, 10,433,981, 12,437,857 and 12,557,857 share options pending to exercise were considered as treasury shares, respectively. ● MIP II On February 19, 2016, the Board of Directors of the Company authorized an extension to the MIP for certain key employees. Such extension was modified as of November 6, 2016. Under MIP II, 13,536,960 share appreciation rights of our Series A shares were granted to be settled annually in cash in a period of five years in accordance with the established service conditions. In addition, a five-year extension to the period in which the employees can exercise MIP II once the SARs are vested was approved. Fair value of the SARs is measured at each reporting period using a Black-Scholes option pricing model, taking into consideration the terms and conditions granted to the employees. The amount of the cash payment is determined based on the increase in our share price between the grant date and the settlement date. The carrying amount of the liability relating to the SARs as of December 31, 2018, 2017 and 2016 was Ps.32,807, Ps.37,858 and Ps.54,357, respectively. The compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits over the service period. During the years ended December 31, 2018, 2017 and 2016, the Company recorded a (benefit) expense of Ps.(5,052), Ps.(16,499) and Ps.54,357, respectively, in the consolidated statement of operations. No SARs were exercised during 2018. The vesting schedule is summarized in the table below: Number of SARs Vesting date 1,695,500 February 2019 2,825,840 February 2020 3,391,020 February 2021 7,912,360 * * Includes forfeited SARs of 1,563,520, 0, and 0, for the years ended December 31, 2018, 2017 and 2016, respectively. The (benefit) expense recognized for the Company’s retention plans during the year is shown in the following table: 2018 2017 2016 (Benefit) expense arising from cash-settled share-based payments transactions Ps. (5,238) Ps. (25,498) Ps. 86,100 Expense arising from equity-settled share-based payments transactions 19,980 13,508 7,816 Total expense (benefit) arising from share-based payments transactions Ps. 14,742 Ps. (11,990) Ps. 93,916 d) Board of Directors Incentive Plan (BODIP) Certain members of the Board of Directors of the Company receive additional benefits through a share-based plan, which has been classified as an equity-settled share-based payment and therefore accounted under IFRS 2 “Shared based payments”. In April 2018, the Board of Directors of the Company authorized a Board of Directors Incentive Plan “BoDIP”, for the benefit of certain board members. The BoDIP grants options to acquire shares of the Company or CPOs during a four years period with an exercise price share at Ps.16.12 for 2018 and Ps.26.29 for 2017, which was determined on the grant date. Under this plan, no service or performance conditions are required to the board members for exercise the option to acquire shares, and therefore, they have the right to request the delivery of those shares at the time they pay for them. For such purposes on August 29, 2018 the Trust Agreement number CIB/3081 was created by Controladora Vuela, Compañia de Aviación S.A.B de C.V as trustee and CIBanco, S.A., Institucion de Banco Multiple as trustor. The number of shares hold as of December 31, 2018 available to be exercised is 1,103,638.

Equity

Equity	12 Months Ended
	Dec. 31, 2018
Equity
Equity	18. Equity As of December 31, 2018, 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 Variable Class I Class II Total shares Series A shares (1) 10,478 923,814,326 923,824,804 Series B shares (1) 13,702 88,038,171 88,051,873 24,180 1,011,852,497 1,011,876,677 Treasury shares (Note 17) — (15,212,365) (15,212,365) * 24,180 996,640,132 996,664,312 *The number of forfeited shares as of December 31, 2018 were 121,451, which are include in treasury shares. (1) On February 16, 2018, one of the Company´s shareholders converted 45,968,598 Series B Shares for the equivalent number of Series A Shares. This conversion has no impact either on the total number of outstanding shares nor on the earnings-per-share calculation. As of December 31, 2017, 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 Variable Class I 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 (Note 17) — (13,257,945) (13,257,945) * 24,180 998,594,552 998,618,732 As of December 31, 2016, 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 Variable Class I 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 (Note 17) — (13,175,905) (13,175,905) * 24,180 998,676,592 998,700,772 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 shareholders’ resolution. The Company’s revolving line of credit with Santander and Bancomext limits the Company’s ability to declare and pay dividends in the event that the Company fails to comply with the payment terms thereunder. Only Series A shares from the Company are listed. During the years ended December 31, 2018, 2017 and 2016, the Company did not declare any dividends. a) (Loss) Earnings per share Basic (loss) earnings per share (“LPS or EPS”) amounts are calculated by dividing the net (loss) income for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted LPS or EPS amounts are calculated by dividing the (loss) profit attributable to ordinary equity holders of the parent (after adjusting for interest on the convertible preference shares, if any), by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares (to the extent that their effect is dilutive). The following table shows the calculations of the basic and diluted (loss) earnings per share for the years ended December 31, 2018, 2017 and 2016. At December 31, 2018 2017 2016 Net (loss) income for the period Ps. (682,500) Ps. (651,788) Ps. 3,478,598 Weighted average number of shares outstanding (in thousands): Basic 1,011,877 1,011,877 1,011,877 Diluted 1,011,877 1,011,877 1,011,877 LPS -EPS: Basic (0.674) (0.644) 3.438 Diluted (0.674) (0.644) 3.438 There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of authorization of these financial statements. a) In accordance with the Mexican Corporations Act, the Company is required to allocate at least 5% of the net income of each year to increase the legal reserve. This practice must be continued until the legal reserve reaches 20% of capital stock. As of December 31, 2018 and 2017, the Company’s legal reserve was Ps.291,178 or 9.8% our capital stock. As of December 31, 2016 the legal reserve was Ps.38,250. At an ordinary general shareholders' meeting held on April 19, 2017 the shareholders approved to increase legal reserve in the amount of Ps.252,928. As of December 31, 2018, 2017 and 2016 the Company’s legal reserve has not reached the 20% of its capital stock. c) Any distribution of earnings in excess of the net tax profit account ( Cuenta de utilidad fiscal neta or “CUFIN”) balance will be subject to corporate income tax, payable by the Company, at the enacted income tax rate at that time. A 10% withholding tax is imposed on dividends distributions to individuals and foreign shareholders from earnings generated starting January 1, 2014. d) Shareholders may contribute certain amounts for future increases in capital stock, either in the fixed or variable capital. Said contributions will be kept in a special account until the shareholders meeting authorizes an increase in the capital stock of the Company, at which time each shareholder will have a preferential right to subscribe and pay the increase with the contributions previously made. As it is not strictly regulated in Mexican law, the shareholders meeting may agree to return the contributions to the shareholders or even set a term in which the increase in the capital stock has to be authorized.

Income tax

Income tax	12 Months Ended
	Dec. 31, 2018
Income tax
Income tax	19. Income tax a) In accordance with the MITL, the Company and its Mexican subsidiaries are subject to income tax and each files its tax returns on an individual entity basis and the related tax results are included in the accompanying consolidated financial statements. The income tax is computed taking into consideration the taxable and deductible effects of inflation, such as depreciation calculated on restated assets values. Taxable income is increased or reduced by the effects of inflation on certain monetary assets and liabilities through the annual inflation adjustment. (i) Based on the approved law, corporate income tax rate for 2018 and thereafter is 30%. (ii) The tax rules include limits in the deductions of the exempt compensation amount certain items, as follows: Wages and benefits paid to workers 47% of income paid to workers and in certain cases up to 53% (holiday bonus, savings fund, employee profit sharing, seniority premiums) will be deductible for employers. As a result, certain wage and salary provisions have difference between tax and book values at year-end. (iii) The MITL sets forth criteria and limits for applying some deductions, such as: the deduction of payments which, in turn, are exempt income for workers, contributions for creating or increasing provisions for pension funds, contributions to the Mexican Institute of Social Security payable by the worker that are paid by the employer, as well as the possible non-deduction of payments made to related parties in the event of failing to meet certain requirements. (iv) Taxable income for purposes of the employee profit sharing is the same used for the Corporate Income Tax except for certain items. (v) A 10% withholding tax is imposed on dividends distributions to individuals and foreign shareholders from earnings generated starting January 1, 2014. The income tax rates for 2018, 2017 and 2016 in Guatemala and Costa Rica are 25% and 30%, respectively. b) For the years ended December 31, 2018, 2017 and 2016, the Company reported on a consolidated basis taxable income of Ps.777,513, Ps.171,046 and Ps.2,702,355, respectively, which was partially offset by tax losses from prior years. In accordance with the MITL and Costa Rican Income Tax Law (CRITL), tax losses may be carried forward against taxable income generated in the succeeding ten and three years, respectively. Carryforward tax losses are restated based on inflation. c) An analysis of consolidated income tax expense for the years ended December 31, 2018, 2017 and 2016 is as follows: Consolidated statements of operations 2018 2017 2016 Current year income tax expense Ps. (232,824) Ps. (51,313) Ps. (706,244) Deferred income tax benefit (expense) 471,060 * 212,488 ** (750,938) *** Total income tax benefit (expense) Ps. 238,236 Ps. 161,175 Ps. (1,457,182) *Includes translation effect by Ps.2,683 **Includes translation effect by Ps.1,008 ***Includes translation effect by Ps.1,242 Consolidated statements of OCI 2018 2017 2016 Deferred tax related to items recognized in OCI during the year Net gain (loss) on cash flow hedges Ps. 85,107 Ps. 12,017 Ps. (187,408) Remeasurement (loss) gain of employee benefits (1,797) 533 132 Deferred tax charged to OCI Ps. 83,310 Ps. 12,550 Ps. (187,276) d) A reconciliation of the statutory corporate income tax rate to the Company’s effective tax rate for financial reporting purposes is as follows: 2018 2017 2016 Statutory income tax rate 30.00 % 30.00 % 30.00 % Non-deductible expenses (3.53) % (3.90) % 0.28 % Unrecorded deferred taxes on tax losses (5.56) % (14.55) % 0.09 % Foreign countries difference with Mexican statutory rate (0.02) % (0.32) % 0.04 % Inflation of tax losses 1.79 % 1.50 % (0.01) % Amendment tax return effects and other tax adjustments (0.08) % (0.31) % (0.11) % Inflation on furniture, intangible and equipment 2.91 % 4.91 % (0.38) % Annual inflation adjustment 0.36 % 4.00 % (0.63) % 25.87 % 21.33 % 29.28 % Mexican income tax matters For Mexican purposes, corporate income tax is computed on accrued basis. MITL requires taxable profit to be determined by considering revenue net of tax deductions. Prior years’ tax losses can be utilized to offset current year taxable income. Income tax is determined by applying the 30% rate on the net amount after tax losses utilization. For tax purposes, income is considered taxable at the earlier of: (i) the time the revenue is collected, (ii) the service is provided or (iii) the time of the issuance of the invoice. Expenses are deductible for tax purposes generally on accrual basis, with some exceptions, once the requirements established in the tax law are fulfilled. Central America (Guatemala and Costa Rica) According to Guatemala Corporate Income tax law, under the regime on profits from business activities, net operating losses cannot offset taxable income in prior or future years. For the year ended December 31, 2018, the Company obtained a net operating income. According to Costa Rica Corporate Income tax law, under the regime on profits from business activities, net operating losses can offset taxable income in a term of three years. For the years ended December 31, 2018, 2017 and 2016, the Company generated net operating losses for an amount of Ps.170,731, Ps.300,613 and Ps.57,414, respectively, for which no deferred tax asset has been recognized. e) An analysis of consolidated deferred taxes is as follows: 2018 2017 2016 Consolidated Consolidated Consolidated statement of Consolidated statement of Consolidated statement of Consolidated financial statement of financial statement of financial statement of position operations position operations position operations Deferred income tax assets: Intangible Ps. 460,590 Ps. (2,621) Ps. 463,211 Ps. (18,415) Ps. 481,626 Ps. (16,637) Provisions 324,445 (27,544) 351,989 8,695 343,294 56,727 Tax losses available for offsetting against future taxable income 309,320 (33,762) 343,082 309,758 33,324 (25,030) Extension lease agreement 149,305 6,170 143,135 41,411 101,724 25,405 Unearned transportation revenue 735,355 699,414 35,941 (29,814) 65,755 7,039 Allowance for doubtful accounts 4,902 (2,422) 7,324 433 6,891 (2,179) Employee benefits 5,446 1,456 5,786 1,222 4,031 886 Employee profit sharing 4,493 1,777 2,716 (490) 3,206 158 Financial instruments 35,955 — (49,151) — (61,168) — 2,029,811 642,468 1,304,033 312,800 978,683 46,369 Deferred income tax liabilities: Supplemental rent 1,595,519 32,156 1,563,363 223,753 1,339,610 363,783 Rotable spare parts, furniture and equipment, net 645,024 168,107 476,917 108,890 368,027 103,926 Prepaid expenses and other assets 170,466 (25,686) 196,152 (239,586) 435,738 280,660 Inventories 88,895 726 88,169 15,286 72,883 23,979 Other prepayments 32,057 (1,212) 33,269 (7,023) 40,292 23,717 2,531,961 174,091 2,357,870 101,320 2,256,550 796,065 Ps. (502,150) Ps. 468,377 Ps. (1,053,837) Ps. 211,480 Ps. (1,277,867) Ps. (749,696) 2018 2017 2016 Reflected in the consolidated statement of financial position as follows: Deferred tax assets Ps. 593,302 Ps. 562,445 Ps. 559,083 Deferred tax liabilities (1,095,452) (1,616,282) (1,836,950) Deferred tax liability, net Ps. (502,150) Ps. (1,053,837) Ps. (1,277,867) A reconciliation of deferred tax liability, net is as follows: 2018 2017 2016 Opening balance as of January 1, Ps. (1,053,837) Ps. (1,277,867) Ps. (340,895) Deferred income tax benefit (expense) during the current year recorded on profits 468,377 211,480 (749,696) Deferred income tax benefit (expense) during the current year recorded in accumulated other comprehensive income (loss) 83,310 12,550 (187,276) Closing balance as of December 31, Ps. (502,150) Ps. (1,053,837) Ps. (1,277,867) At December 31, 2018, 2017 and 2016, the table shown above includes deferred income tax asset recognized by Concesionaria and Operaciones Volaris (2018), Comercializadora (2017) for tax losses carry-forwards to the extent that the realization of the related tax benefit through future taxable profits is probable. The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. According to IAS 12, Income Taxes, a deferred tax asset should be recognized for the carry-forward of available tax losses to the extent that it is probable that future taxable income will be available against which the available tax losses can be utilized. In this regards, the Company has recognized at December 31, 2018, 2017 and 2016 a deferred tax asset for tax losses of Ps.309,320, Ps.343,082 and Ps.33,324 respectively. During 2017, the Company recognized a deferred tax asset for the carry-forward of available tax losses of Concesionaria, Comercializadora and Operaciones Volaris, based on the positive evidence of the Company to generate taxable profit related to the same taxation authority against which the available tax losses can be utilized before they expire. Positive evidence includes Concesionaria’s actions to increase its aircraft fleet in the following years, increase in flight frequencies, and routes, inside and outside of Mexico; the profit of Comercializadora and Operaciones Volaris, respectively, is derived directly from Concesionaria’s operations. An analysis of the available tax losses carry-forward of the Company at December 31, 2018 is as follows: Year Historical Restated Total remaining Year of of loss Loss tax loss Utilized amount expiration 2016 Ps. 57,414 Ps. 57,414 Ps. — Ps. 57,414 2016 52,221 57,215 57,215 — 2017 300,613 300,613 — 300,613 2017 1,068,498 1,150,140 122,359 1,027,781 2018 170,731 170,731 — 170,731 2018 3,191 3,290 — 3,290 Ps. 1,652,668 Ps. 1,739,403 Ps. 179,574 Ps. 1,559,829 A breakdown of available tax loss carry-forward of Controladora and its subsidiaries at December 31, 2018 is as follows: Historical Restated Total loss tax loss Utilized remaining amount Comercializadora Ps. 52,221 Ps. 57,215 Ps. 57,215 Ps. — Concesionaria 1,067,836 1,149,425 122,359 1,027,066 Operaciones Volaris 3,853 4,005 — 4,005 Vuela Aviación 528,758 528,758 — 528,758 Ps. 1,652,668 Ps. 1,739,403 Ps. 179,574 Ps. 1,559,829 Unrecognized NOLs (528,758) Ps. 1,031,071 Tax rate 30 % Deferred income tax Ps. 309,320 f) At December 31, 2018 the Company had the following tax balances: 2018 Restated contributed capital account ( Cuenta de capital de aportación or “CUCA”) Ps. 3,917,548 CUFIN* 3,107,037 *The calculation comprises all the subsidiaries of the Company.

Other operating income and expe

Other operating income and expenses	12 Months Ended
	Dec. 31, 2018
Other operating income and expenses
Other operating income and expenses	20. Other operating income and expenses An analysis of other operating income is as follows: 2018 2017 2016 Gain on sale and leaseback (Note 14c) Ps. 609,168 Ps. 65,886 Ps. 484,827 Loss on sale of rotable spare parts furniture and equipment (2,356) (908) (1,262) Administrative benefits — 27,180 9,072 Other income 15,161 4,607 4,105 Ps. 621,973 Ps. 96,765 Ps. 496,742 An analysis of other operating expenses is as follows: 2018 2017 2016 Administrative and operational support expenses Ps. 570,409 Ps. 562,739 Ps. 541,826 Technology and communications 385,841 373,394 266,898 Passenger services 70,337 59,261 45,439 Insurance 60,892 54,569 56,414 Rents of offices, maintenance warehouse and hangar (Note 14c) 36,483 30,544 33,517 Disposal of intangible, rotable spare parts, furniture and equipment — 11 436 Others 5,949 7,922 7,922 Ps. 1,129,911 Ps. 1,088,440 Ps. 952,452

Finance income and cost

Finance income and cost	12 Months Ended
	Dec. 31, 2018
Finance income and cost
Finance income and cost	21. Finance income and cost An analysis of finance income is as follows: 2018 2017 2016 Interest on cash and equivalents Ps. 152,437 Ps. 105,151 Ps. 78,793 Interest on recovery of guarantee deposits 166 644 23,792 Others — — 6 Ps. 152,603 Ps. 105,795 Ps. 102,591 An analysis of finance cost is as follows: 2018 2017 2016 Cost of letter credit notes Ps. 57,277 Ps. 42,294 Ps. 28,067 Interest on debts and borrowings* 56,916 37,565 1,245 Bank fees and others 6,141 5,279 5,804 Other finance costs — 1,219 — Ps. 120,334 Ps. 86,357 Ps. 35,116 * The borrowing costs related to the acquisition or construction of qualifying assets are capitalized as part of the cost of the asset (Note 12) Interest expense not capitalized is related to the short term working capital facility from Citibanamex. 2018 2017 2016 Interest on debts and borrowings Ps. 414,836 Ps. 230,954 Ps. 96,690 Capitalized interest (Note 12) (357,920) (193,389) (95,445) Net interest on debts and borrowing in the consolidated statements of operations Ps. 56,916 Ps. 37,565 Ps. 1,245

Components of other comprehensi

Components of other comprehensive income (loss)	12 Months Ended
	Dec. 31, 2018
Components of other comprehensive income (loss)
Components of other comprehensive income (loss)	22. Components of other comprehensive income (loss) An analysis of the other comprehensive income for the years ended December 31, 2018, 2017 and 2016 is as follows: 2018 2017 2016 Derivative financial instruments: Reclassification of call options and forwards during the year to profit or loss (Note 4) Ps. (455,009) Ps. 52,097 Ps. 353,943 Extrinsic value of changes on jet fuel Asian call options 227,509 (81,182) 277,899 Extrinsic value of changes on jet fuel Zero cost collars (122,948) — — Gain (loss) of the matured foreign currency forward contracts 66,757 (13,380) — Gain (loss) of the not-yet matured interest rate swap contracts — 317 (7,148) Total Ps. (283,691) Ps. (42,148) Ps. 624,694

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and contingencies
Commitments and contingencies	23. Commitments and contingencies Aircraft related commitments and financing arrangements Committed expenditures for aircraft purchase and related flight equipment related to the Airbus purchase agreement, including estimated amounts for contractual prices escalations and pre-delivery payments, will be as follows: Commitment Commitment expenditures expenditures in U.S. equivalent in dollars Mexican pesos (1) 2019 US$ 76,559 Ps. 1,506,903 2020 136,936 2,695,298 2021 164,856 3,244,844 2022 and thereafter 691,836 13,617,339 US$ 1,070,187 Ps. 21,064,384 (1) Using the exchange rate as of December 31, 2018 of Ps.19.6829. All aircraft acquired by the Company through the Airbus purchase agreement through December 31, 2018 have been executed through sale and leaseback transactions. Litigation a) 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. b) On January 18, 2018, the Mexican antitrust authority, Comisión Federal de Competencia Económica (“COFECE”), served Volaris with a preliminary ruling of potential responsibility (Dictamen de Probable Responsabilidad or “DPR”) in which the investigating body of COFECE asserts certain allegations regarding antitrust activities in Mexico´s domestic commercial air passenger transportation market during the period from April 2008 up to February 2010 by different Mexican carriers, including Volaris.

Operating segments

Operating segments	12 Months Ended
	Dec. 31, 2018
Operating segments
Operating segments	24. Operating segments The Company is managed as a single business unit that provides air transportation services. The Company has two geographic segments identified below: 2018 2017 2016 Operating revenues: Domestic (Mexico) Ps. 18,493,476 Ps. 17,272,946 Ps. 15,694,044 International: United States of America and Central America * 8,811,674 7,515,240 7,777,516 Total operating revenues Ps. 27,305,150 Ps. 24,788,186 Ps. 23,471,560 *United States of America represents approximately 32%, 30% and 32% of total revenues from external customers in 2018, 2017 and 2016, respectively. Revenues are allocated by geographic segments based upon the origin of each flight. The Company does not have material non-current assets located in foreign countries.

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2018
Subsequent events
Subsequent events	25. Subsequent events Subsequent to December 31, 2018 and through April 25, 2019: 1. On April 9, the Company presented its new brand named “YaVas”, operated through its subsidiary “Viajes Vuela”. YaVas is a on line travel agency (www.yavas.com), which offers the opportunity to find in one single webpage: airline tickets, hotels, transfers and other supplemental travel services. 2. On March 28, 2019, COFECE served the Company the final ruling dated March 19, 2019 issued by the Board of Commissioners in its meeting held March 14, 2019 that resolved that no liability is to be imposed against the Company.

Description of the business a_2

Description of the business and summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2018
Description of the business and summary of significant accounting policies
Basis of preparation	b) Basis of preparation Statement of compliance These consolidated financial statements comprise the financial statements of the Company and its subsidiaries at December 31, 2018, 2017 and 2016 and for each of the three years in the period ended December 31, 2018 and were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The presentation currency of the Company’s consolidated financial statements is the Mexican peso, which is used also for compliance with its legal and tax obligations. All values in the consolidated financial statements are rounded to the nearest thousand (Ps.000), except when otherwise indicated. The Company has consistently applied its accounting policies to all periods presented in these consolidated financial statements, and provide comparative information in respect of the previous period. The Company presents an additional statement of financial position at January 1 2017, due to a retrospective application of accounting policies as a result of the adoption of IFRS 15 “Revenue from contracts with customers” See Note 1 x. 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”). 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 consolidated financial statements and notes. Actual results could differ from those estimates.
Basis of consolidation	c) Basis of consolidation The accompanying consolidated financial statements comprise the financial statements of the Company and its subsidiaries. At December 31, 2018, 2017 and 2016, for accounting purposes the companies included in the consolidated financial statements are as follows: Principal % Equity interest Name Activities Country 2018 2017 2016 Concesionaria Air transportation services for passengers, cargo and mail throughout Mexico and abroad Mexico 100 % 100 % 100 % Volaris Costa Rica Air transportation services for passengers, cargo and mail in Costa Rica and abroad Costa Rica 100 % 100 % 100 % Vuela, S.A. (“Vuela”)* Air transportation services for passengers, cargo and mail in Guatemala and abroad Guatemala 100 % 100 % 100 % Vuela El Salvador, S.A. de C.V.* Air transportation services for passengers, cargo and mail in El Salvador and abroad El Salvador 100 % — — Comercializadora Volaris, S.A. de C.V. Merchandising of services Mexico 100 % 100 % 100 % Servicios Earhart, S.A.* Recruitment and payroll Guatemala 100 % 100 % 100 % Servicios Corporativos Volaris, S.A. de C.V. (“Servicios Corporativos”) Recruitment and payroll Mexico 100 % 100 % 100 % Servicios Administrativos Volaris, S.A. de C.V. (“Servicios Administrativos”) Recruitment and payroll Mexico 100 % 100 % 100 % Comercializadora V Frecuenta, S.A. de C.V. (“Loyalty Program”)** Loyalty Program México 100 % — — Viajes Vuela, S.A. de C.V. (“Viajes Vuela”)(1) Travel agency Mexico 100 % 100 % 100 % Deutsche Bank México, S.A., Trust 1710 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % 100 % Deutsche Bank México, S.A., Trust 1711 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number F/307750 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number F/745291 Share administration trust (Note 17) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number CIB/3081 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % — — *The Companies have not started operations yet in Guatemala and El Salvador. **The Company has not started operations yet (1) With effect from July 16, 2018, the name of the Company was changed from Operaciones Volaris, S.A. de C.V. to Viajes Vuela, S.A. de C.V. The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has: (i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee). (ii) Exposure, or rights, to variable returns from its involvement with the investee. (iii) The ability to use its power over the investee to affect its returns. When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (i) The contractual arrangement with the other vote holders of the investee. (ii) Rights arising from other contractual arrangements. (iii) The Company’s voting rights and potential voting rights. The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. All intercompany balances, transactions, unrealized gains and losses resulting from intercompany transactions are eliminated in full. On consolidation, the assets and liabilities of foreign operations are translated into Mexican pesos at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in other comprehensive income (“OCI”). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognized in profit or loss.
Revenue recognition	d) Revenue recognition As of January 1, 2018, the Company adopted IFRS 15 using the full retrospective method of adoption, in order to provide comparative results in all periods presented, recognizing the effect in retained earnings as of January 1, 2016. The main impact of IFRS 15 is the timing of recognition of certain air travel-related services (“ancillaries”). Under the new standard, certain ancillaries are recognized when the Company satisfies its performance obligations which is typically when the air transportation service is rendered (at the time of the flight). This change arises primarily because those ancillaries do not constitute separate performance obligations or represent administrative tasks that do not represent a different promised service and therefore should be accounted for together with the air fare as a single performance obligation of providing passenger transportation. Also, certain complementary services including re-accommodation in other airlines provided to customers are recorded as a reduction of revenues. The classification of certain ancillary fees in the statement of operations, such as advanced seat selection, fees charged for excess baggage, itinerary changes and other air travel-related services, changed with adoption of IFRS 15, since they are part of the single performance obligation of providing passenger transportation See Note 1 x. Passenger revenues Revenues from the air transportation of passengers are recognized at the earlier of when the service is provided or when the non-refundable ticket expires at the date of the scheduled travel. Ticket sales for future flights are initially recognized as contract liabilities under the caption “unearned transportation revenue” and, once the transportation service is provided by the Company or when the non-refundable ticket expires at the date of the scheduled travel, the earned revenue is recognized as passenger ticket revenues and the unearned transportation revenue is reduced by the same amount. All the Company’s tickets are non-refundable and are subject to change upon a payment of a fee. Additionally, the Company does not operate a frequent flier program. The most significant passenger revenue includes revenues generated from: (i) fare revenue and (ii) other passenger revenues. Other passenger services include but are not limited to fees charged for excess baggage, bookings through the call center or third-party agencies, advanced seat selection, itinerary changes and charters. They are recognized as revenue when the obligation of passenger transportation service is provided by the Company or when the non-refundable ticket expires at the date of the scheduled travel. The Company also classifies as other passenger revenue “V Club” and other similar services, which are recognized as revenue over time when the service is provided, since customer simultaneously receives and consumes the benefits provided by the Company. Non-passenger revenues The most significant non-passenger revenues include revenues generated from: (i) revenues from other non-passenger services described below and (ii) cargo services. Revenues from other non-passenger services mainly include but are not limited to commissions charged to third parties for the sale of hotel reservations, trip insurance, rental cars and advertising spaces to third parties. They are recognized as revenue at the time the service is provided. The Company concluded that the timing of satisfaction of revenue from advertising spaces is to be recognized over time because the customer simultaneously receives and consumes the benefits provided by the Company. The Company also evaluated the principal versus agent considerations as it relates to certain non-air travel services arrangements with third party providers. No changes were identified under this analysis as the Company is agent for those services provided by third parties. Other considerations analyzed as part of revenue from contracts with customers All revenues offered by the Company including sales of tickets for future flights, other passenger related services and non-passenger revenue must be paid through a full cash settlement. The payment of the transaction price is equal to the cash settlement from the client at the sales time (using different payment options like credit or debit cards, paying through a third party or directly at the counter in cash). There is little or no judgment to determine the point in time of the revenue recognition, and the amount of it. Even if mainly all of the sales of services are initially recognized as contract liabilities, there is no financing component in these transactions. The cost to obtain a contract is represented by the commissions paid to the travel agencies and the bank commissions charged by the financial institutions for processing electronic transactions (Note 10). The Company does not incur any additional costs to obtain and fulfill a contract that is eligible for capitalization. Trade receivables are mainly with financial institutions due to transactions with credit and debit cards, and therefore they are non-interest bearing and are mainly on terms of 24 to 48 hours. The Company has the right of collection at the beginning of the contracts and there are no discounts, payment incentives, bonuses or other variable considerations subsequent to the purchase that could modify the amount of the transaction price. The Company does not have any obligations for returns, refunds and other similar obligations. All revenues from the Company related to future services, or services are rendered through a period of time less than 12 months. Breakdown of revenues: As of December 31, 2018, 2017 and 2016, the revenues from customers of contracts is described as follows: At the flight time At the sale Total Revenue recognition as of December 31, 2018 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 12,336,095 Ps. 6,151,763 Ps. — Ps. — Ps. 18,487,858 Other Passenger Revenues 5,182,572 2,598,375 68,264 43,286 7,892,497 17,518,667 8,750,138 68,264 43,286 26,380,355 Non-Passenger Revenues Other Non-Passenger revenues 685,219 12,138 — — 697,357 Cargo 221,324 6,114 — — 227,438 Total Ps. 18,425,210 Ps. 8,768,390 Ps. 68,264 Ps. 43,286 Ps. 27,305,150 At the flight time At the sale Total Revenue recognition as of December 31, 2017 (Adjusted) Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 12,284,795 Ps. 5,506,522 Ps. — Ps. — Ps. 17,791,317 Other Passenger Revenues 4,087,664 1,992,696 11,283 6,861 6,098,504 16,372,459 7,499,218 11,283 6,861 23,889,821 Non-Passenger Revenues Other Non-Passenger revenues 723,297 4,095 — — 727,392 Cargo 165,907 5,066 — — 170,973 Total Ps. 17,261,663 Ps. 7,508,379 Ps. 11,283 Ps. 6,861 Ps. 24,788,186 At the flight time At the sale Total Revenue recognition as of December 31, 2016 (Adjusted) Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 11,701,014 Ps. 6,089,116 Ps. — Ps. — Ps. 17,790,130 Other Passenger Revenues 3,238,826 1,680,626 — — 4,919,452 14,939,840 7,769,742 — — 22,709,582 Non-Passenger Revenues Other Non-Passenger revenues 587,270 3,085 — — 590,355 Cargo 166,934 4,689 — — 171,623 Total Ps. 15,694,044 Ps. 7,777,516 Ps. — Ps. — Ps. 23,471,560 Transactions from unearned transportation revenues. 2017 2016 2018 Adjusted Adjusted January 1, Ps. 2,293,309 Ps. 2,228,051 Ps. 1,957,254 Deferred 26,254,391 23,714,649 22,778,110 Recognized in revenue during the year (26,109,184) (23,649,391) (22,507,313) December 31, Ps. 2,438,516 Ps. 2,293,309 Ps. 2,228,051 The performance obligations related to contract liability are recognized over the 12 following months and are related to the scheduled flights and other passenger services purchased by the client in advance.
Cash and cash equivalents	e) 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 purposes of the consolidated statements of cash flows, cash and cash equivalents consist of cash and short-term investments as defined above.
Financial instruments initial recognition and subsequent measurement	f) Financial instruments -initial recognition and subsequent measurement 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. i) Financial assets Initial recognition Classification of financial assets and initial reccognition The Company determines the classification and measurement of financial assets, in accordance with the categories in IFRS 9, 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. 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. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when: a) The rights to receive cash flows from the asset have expired; b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset; or When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the asset is recognized to the extent of the Company’s continuing involvement in the asset. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. ii) Impairment of financial assets The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired in the Cash Generating Units (CGU). An impairment exists if one or more events has occurred since the initial recognition of an asset (an incurred ‘loss event’), that has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in receivable, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated cash flows, such as changes in arrears or economic conditions that correlate with defaults. Further disclosures related to impairment of financial assets are also provided in Note 2vi) and Note 8. For trade receivables, the Company records allowance for credit losses in accordance with the objective evidence of the incurred losses. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. For the years ended December 31, 2018, 2017 and 2016, the Company recorded expected credit losses on accounts receivable of Ps.10,621, Ps.4,720 and Ps.9,164, respectively (Note 8). iii) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and borrowings, accounts payables to suppliers, unearned transportation revenue, other accounts payable and financial instruments. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. 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. Loans and borrowings are the category most relevant to the Company. 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. Amortized cost is calculated by taking into account any discount or premium on issuance and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the consolidated statements of operations. This amortized cost category generally applies to interest-bearing loans and borrowings (Note 5). Financial liabilities at FVTPL Financial liabilities at FVTPL include financial liabilities under the fair value option, which 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. During the years ended December 31, 2018, 2017 and 2016 the Company has did not designated any financial liability as at FVTPL. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of operations. Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated statement of financial position if there is: (i) A currently enforceable legal right to offset the recognized amounts, and An intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Other accounts receivable	(i) g) Other accounts receivable Other accounts receivables are due primarily from major credit card processors associated with the sales of tickets and are stated at cost less allowances made for credit losses, which approximates fair value given their short-term nature.
Inventories	h) Inventories Inventories consist primarily of flight equipment expendable parts, materials and supplies, and are initially recorded at acquisition cost. Inventories are carried at the lower of cost and their net realization value. The cost is determined on the basis of the method of specific identification and expensed when used in operations.
Intangible assets	i) Intangible assets Cost related to the purchase or development of computer software that is separable from an item of related hardware is capitalized separately and amortized over the period in which it will generate benefits not exceeding five years on a straight-line basis. The Company annually reviews the estimated useful lives and salvage values of intangible assets and any changes are accounted for prospectively. The Company records impairment charges on intangible assets used in operations when events and circumstances indicate that the assets or related cash generating unit may be impaired and the carrying amount of a long-lived asset or cash generating unit exceeds its recoverable amount, which is the higher of (i) its fair value less cost to sell, and (ii) its value in use. The value in use calculation is based on a discounted cash flow model, using our 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.
Guarantee deposits	j) Guarantee deposits Guarantee deposits consist primarily of aircraft maintenance deposits paid to lessors, deposits for rent of flight equipment and other guarantee deposits. Aircraft and engine deposits are held by lessors in U.S. dollars and are presented as current assets and non-current assets, based on the recovery dates of each deposit established in the related agreements (Note 11). Aircraft maintenance deposits paid to lessors Most of the Company’s lease agreements require the Company to pay maintenance deposits to aircraft lessors to be held as collateral in advance of the Company’s performance of major maintenance activities. These lease agreements provide that maintenance deposits are reimbursable to the Company upon completion of the maintenance event in an amount equal to the lesser of (i) the amount of the maintenance deposits held by the lessor associated with the specific maintenance event, or (ii) the qualifying costs related to the specific maintenance event. Substantially all these maintenance deposits are calculated based on a utilization measure of the leased aircrafts and engines, such as flight hours or cycles, and are used solely to collateralize the lessor for maintenance time run off the aircraft and engines until the completion of the maintenance of the aircraft and engines. Maintenance deposits expected to be recovered from lessors are reflected as guarantee deposits in the accompanying consolidated statement of financial position. These deposits are recorded as a monetary asset and are revaluated in order to record the foreign currency changes at each reported period. The portion of prepaid maintenance deposits that is deemed unlikely to be recovered, primarily relating to the rate differential between the maintenance deposits and the expected cost for the next related maintenance event that the deposits serve to collateralize, is recognized as supplemental rent in the consolidated statements of operations. Thus, any excess of the required deposit over the expected cost of the major maintenance event is recognized as supplemental rent in the consolidated statements of operations starting from the period the determination is made. For the years ended December 31, 2018, 2017 and 2016, the Company expensed as supplemental rent Ps.87,019, Ps.103,648 and Ps.143,923, respectively. Any usage-based maintenance deposits to be paid to the lessor, related with a major maintenance event that (i) is not expected to be performed before the expiration of the lease agreement, (ii) is nonrefundable to the Company and (iii) is not substantively related to the maintenance of the leased asset, is accounted for as supplemental rent in the consolidated statements of operations. The Company records lease payment as supplemental rent when it becomes probable and reasonably estimable that the maintenance deposits payments will not be refunded. During the year ended December 31, 2018, 2017 and 2016, the Company added ten, five and 17 new net aircraft to its fleet, respectively. Some lease agreements of these aircraft do not require the obligation to pay maintenance deposits to lessors in advance in order to ensure major maintenance activities, so the Company does not record guarantee deposits regarding these aircraft. However, some lease agreements provide the obligation to make a maintenance adjustment payment to the lessors at the end of the contract period. The maintenance adjustment covers maintenance events that are not expected to be made before the termination of the contract; for such agreements the Company accrues a liability related to the amount of the costs to be incurred at the lease term, since no maintenance deposits had been made, Note 15c). The Company recognizes supplemental rent as incurred in the consolidated statement of operations. For the years ended December 31, 2018, 2017 and 2016, the Company expensed as supplemental rent for these maintenance tasks Ps.212,582, Ps.162,108 and Ps.201,434, respectively. The Company makes certain assumptions at the inception of the lease and at each consolidated statement of financial position date to determine the recoverability of maintenance deposits. These assumptions are based on various factors such as 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 and engines is estimated to be utilized before it is returned to the lessor. In the event that lease extensions are negotiated, any extension benefit is recognized as a deferred lease incentive. The aggregate benefit of extension is recognized as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. During the years ended December 31, 2018, 2017 and 2016, the Company extended the lease term of two, three and two aircraft agreements, respectively. Additionally, the Company extended the lease term of two spare engines in 2018 and two spare engines during 2017. These extensions made available to the Company maintenance deposits that were recognized in prior periods in the consolidated statements of operations as supplemental rent of Ps.0, Ps.65,716 and Ps.92,528 during 2018, 2017 and 2016, respectively. The maintenance event for which the maintenance deposits were previously expensed was scheduled to occur after the original lease term and as such the supplemental rental payments were expensed. However, when the leases were amended the maintenance deposits amounts became probable of recovery due to the longer lease term and as such they are being recognized as an asset. The effect of these lease extensions were recognized as a guarantee deposit and a lease incentive in the consolidated statements of financial position at the time of lease extension. Because the lease extension benefits are considered lease incentives, the benefits are deferred in the statement of financial position and are being recognized on a straight-line basis over the remaining revised lease terms. For the years ended December 31, 2018, 2017 and 2016, the Company amortized Ps.84,637, Ps.88,224 and Ps.74,748, respectively, of lease incentives which was recognized as a reduction of rent expenses in the consolidated statements of operations.
Aircraft and engine maintenance	k) Aircraft and engine maintenance The Company is required to conduct various levels of aircraft maintenance. Maintenance requirements depend on the type of aircraft, age and the route network over which it operates. Fleet maintenance requirements may involve short cycle engineering checks, for example, component checks, monthly checks, annual airframe checks and periodic major maintenance and engine checks. Aircraft maintenance and repair consists of routine and non-routine works, divided into three general categories: (i) routine maintenance, (ii) major maintenance and (iii) component service. (i) Routine maintenance requirements consist of scheduled maintenance checks on the Company’s aircraft, including pre-flight, daily, weekly and overnight checks, any diagnostics and routine repairs and any unscheduled tasks performed as required. These type of maintenance events are currently serviced by Company mechanics and are primarily completed at the main airports that the Company currently serves. All other maintenance activities are sub-contracted to qualified maintenance business partner, repair and overhaul organizations. Routine maintenance also includes scheduled tasks that can take from seven to 14 days to accomplish and typically are required approximately every 22 months. All routine maintenance costs are expensed as incurred. (ii) Major maintenance consists of a series of more complex tasks that can take up to six weeks to accomplish and typically are required approximately every five to six years. Major maintenance is accounted for under the deferral method, whereby the cost of major maintenance and major overhaul and repair is capitalized (leasehold improvements to flight equipment) and amortized over the shorter of the period to the next major maintenance event or the remaining contractual lease term. The next major maintenance event is estimated based on assumptions including estimated usage. The United States Federal Aviation Administration (“FAA”) and the Mexican Civil Aeronautic Authority (Dirección General de Aeronáutica Civil, or “DGAC”) mandate maintenance intervals and average removal times as suggested by the manufacturer. These assumptions may change based on changes in the utilization of aircraft, changes in government regulations and suggested manufacturer maintenance intervals. In addition, these assumptions can be affected by unplanned incidents that could damage an airframe, engine, or major component to a level that would require a heavy maintenance event prior to a scheduled maintenance event. To the extent the planned usage increases, the estimated life would decrease before the next maintenance event, resulting in additional expense over a shorter period. During the years ended December 31, 2018, 2017 and 2016, the Company capitalized major maintenance events as part of leasehold improvements to flight equipment for an amount of Ps.676,457, Ps.529,331 and Ps.226,526, respectively (Note 12). For the years ended December 31, 2018, 2017 and 2016, the amortization of major maintenance leasehold improvement costs was Ps.313,464, Ps.382,745 and Ps.404,659 respectively (Note 12). The amortization of deferred maintenance costs is recorded as part of depreciation and amortization in the consolidated statements of operations. (iii) The Company has a power-by-the hour agreement for component services, which guarantees the availability of aircraft parts for the Company’s fleet when they are required. It also provides aircraft parts that are included in the redelivery conditions of the contract (hard time) without constituting an additional cost at the time of redelivery. The monthly maintenance cost associated with this agreement is recognized as incurred in the consolidated statements of operations. The Company has an engine flight hour agreement (component repair agreement), that guarantees a cost per overhaul, provides miscellaneous engines coverage, caps the cost of foreign objects damage events, ensures there is protection from annual escalations, and grants an annual credit for scrapped components. The cost associated with the miscellaneous engines coverage is recorded monthly as incurred in the consolidated statements of operations.
Rotable spare parts, furniture and equipment, net	l) Rotable spare parts, furniture and equipment, net Rotable spare parts, furniture and equipment, are recorded at cost and are depreciated to estimated residual values over their estimated useful lives using the straight-line method. Aircraft spare engines have significant components with different useful lives; therefore, they are accounted for as separate items (major components) of spare engine parts (Note 12d). Pre-delivery payments refer to prepayments made to aircraft and engine manufacturers during the manufacturing stage of the aircraft. The borrowing costs related to the acquisition or construction of a qualifying asset are capitalized as part of the cost of that asset. During the years ended December 31, 2018, 2017 and 2016, the Company capitalized borrowing costs which amounted to Ps.357,920 Ps.193,389 and Ps.95,445, respectively (Note 21). The rate used to determine the amount of borrowing cost was 4.41%, 3.30% and 2.88%, for the years ended December 31, 2018, 2017 and 2016, respectively. Depreciation rates are as follows: Annual depreciation rate Aircraft parts and rotable spare parts 8.3-16.7% Aircraft spare engines 4.0-8.3% Standardization Remaining contractual lease term Computer equipment 25% Communications equipment 10% Office furniture and equipment 10% Electric power equipment 10% Workshop machinery and equipment 10% Service carts on board 20% Leasehold improvements to flight equipment The shorter of: (i) remaining contractual lease term, or (ii) the next major maintenance event The Company reviews annually the useful lives and salvage values of these assets and any changes are accounted for prospectively. The Company assesses, at each reporting date, whether there is an objective evidence that rotable spare parts, furniture and equipment is impaired in the Cash Generating Unit (CGU). The Company identified only one CGU, which is the fleet. The Company records impairment charges on rotable spare parts, furniture and equipment used in operations when events and circumstances indicate that the assets may be impaired or when the carrying amount of a long-lived asset or related cash generating unit exceeds its recoverable amount, which is the higher of (i) its fair value less cost to sell and (ii) its value in use. The value in use calculation is based on a discounted cash flow model, using 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. During 2018, the Company performed its annual impairment test. The recoverable amount of rotable spare parts, furniture and equipment assets was determined based on a value in use calculation using cash flow projections from financial budgets approved by senior management, covering a five-year period. The projected cash flows have been updated to reflect the future operating cashflows. It was concluded that the fair value less costs of disposal did not exceed the value in use. Consequently, for the years ended December 31, 2018, 2017 and 2016, there were no impairment charges recorded in respect of the Company’s value of rotable, spare parts, furniture and equipment.
Foreign currency transactions and exchange differences	m) Foreign currency transactions and exchange differences The Company’s consolidated financial statements are presented in Mexican peso, which is the reporting and functional currency of the parent company. For each subsidiary, the Company determines the functional currency and items included in the financial statements of each entity are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The financial statements of foreign subsidiaries prepared under IFRS and denominated in their respective local currencies, are translated into the functional currency as follows: · Transactions in foreign currencies are translated into the respective functional currencies at the exchange rates at the dates of the transactions. · All monetary assets and liabilities were translated at the exchange rate at the consolidated statement of financial position date. · All non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. · Equity accounts are translated at the prevailing exchange rate at the time the capital contributions were made and the profits were generated. · Revenues, costs and expenses are translated at the average exchange rate during the applicable period. Any differences resulting from the currency translation are recognized in the consolidated statements of operations. For the year ended December 31, 2018, 2017 and 2016, the exchange rates of local currencies translated to functional currencies are as follows: Exchange rates of local Exchange rates of local Exchange rates of local currencies translated to currencies translated to currencies translated to functional currencies functional currencies functional currencies Average Average Average Local Functional exchange rate Exchange rate exchange rate Exchange rate exchange rate Exchange rate Country currency currency for 2018 as of 2018 for 2017 as of 2017 for 2016 as of 2016 Costa Rica Colon U.S. dollar ₵. 580.8534 ₵. 609.6100 ₵. 572.2000 ₵. 572.5600 ₵. 564.3332 ₵. 561.1000 Guatemala Quetzal U.S. dollar Q. 7.5337 Q. 7.7440 Q. 7.3509 Q. 7.3448 Q. 7.4931 Q. 7.5221 The exchange rates used to translate the above amounts to Mexican pesos at December 31, 2018, 2017 and 2016, were Ps.19.6829, Ps.19.7354 and Ps.20.6640, respectively, per U.S. dollar. Foreign currency differences arising on translation into the presentation currency are recognized in OCI. Exchange differences on translation of foreign entities for the year ended December 31, 2018, 2017 and 2016, were Ps.22,156, Ps.(7,178) and Ps.(4,756), respectively.
Liabilities and provisions	. n) Liabilities and provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. For the operating leases, the Company is contractually obligated to return the leased aircraft in a specific condition. The Company accrues for restitution costs related to aircraft held under operating leases throughout the term of the lease, based upon the estimated cost of satisfying the return condition criteria for each aircraft. These return obligations are related to the costs to be incurred in the reconfiguration of aircraft (interior and exterior), painting, carpeting and other costs, which are estimated based on current cost adjusted for inflation. The return obligation is estimated at the inception of each leasing arrangement and recognized over the term of the lease (Note 15c). The Company records aircraft lease return obligation reserves based on the best estimate of the return obligation costs under each aircraft lease agreement. The aircraft lease agreements of the Company also require that the aircraft and engines be returned to lessors under specific conditions of maintenance. The costs of return, which in no case are related to scheduled major maintenance, are estimated and recognized ratably as a provision from the time it becomes likely such costs will be incurred and can be estimated reliably. These return costs are recognized on a straight-line basis as a component of supplemental rent and the provision is included as part of other liabilities, through the remaining lease term. The Company estimates the provision related to airframe, engine overhaul and limited life parts using certain assumptions including the projected usage of the aircraft and the expected costs of maintenance tasks to be performed. For the years ended December 31, 2018, 2017 and 2016, the Company expensed as supplemental rent Ps.659,106, Ps.851,410 and Ps.933,730, respectively.
Employee benefits	o) Employee benefits i) Personnel vacations The Company and its subsidiaries in Mexico and Central America recognize a reserve for the costs of paid absences, such as vacation time, based on the accrual method. ii) Termination benefits The Company recognizes a liability and expense for termination benefits at the earlier of the following dates: a) When it can no longer withdraw the offer of those benefits; and b) When it recognizes costs for a restructuring that is within the scope of IAS 37, Provisions, Contingent Liabilities and Contingent Assets , and involves the payment of termination benefits. The Company is demonstrably committed to a termination when, and only when, it has a detailed formal plan for the termination and is without realistic possibility of withdrawal. For the years ended December 31, 2018, 2017 and 2016, no termination benefits provision has been recognized. iii) Seniority premiums In accordance with Mexican Labor Law, the Company provides seniority premium benefits to the employees which rendered services to its Mexican subsidiaries under certain circumstances. These benefits consist of a one-time payment equivalent to 12 days’ wages for each year of service (at the employee’s most recent salary, but not to exceed twice the legal minimum wage), payable to all employees with 15 or more years of service, as well as to certain employees terminated involuntarily prior to the vesting of their seniority premium benefit. Obligations relating to seniority premiums other than those arising from restructurings, are recognized based upon actuarial calculations and are determined using the projected unit credit method. The latest actuarial computation was prepared as of December 31, 2018. Remeasurement gains and losses are recognized in full in the period in which they occur in OCI. Such remeasurement gains and losses are not reclassified to profit or loss in subsequent periods. The defined benefit asset or liability comprises the present value of the defined benefit obligation using a discount rate based on government bonds ( Certificados de la Tesorería de la Federación, or “CETES” in Mexico), less the fair value of plan assets out of which the obligations are to be settled. For entities in Costa Rica and Guatemala there is no obligation to pay seniority premium or other retirement benefits. iv) Incentives The Company has a quarterly incentive plan for certain personnel whereby cash bonuses are awarded for meeting certain performance targets. These incentives are payable shortly after the end of each quarter and are accounted for as a short-term benefit under IAS 19, Employee Benefits . A provision is recognized based on the estimated amount of the incentive payment. During the years ended December 31, 2018, 2017 and 2016 the Company expensed Ps.67,680, Ps.48,384 and Ps.40,829, respectively, as quarterly incentive bonuses, recorded under the caption salaries and benefits. During the year ended December 31, 2015, the Company adopted a new short-term benefit plan for certain key personnel whereby cash bonuses are awarded when certain Company’s performance targets are met. These incentives are payable shortly after the end of each year and also are accounted for as a short-term benefit under IAS 19. A provision is recognized based on the estimated amount of the incentive payment. During the years ended December 31, 2018, 2017 and 2016 the Company recorded an expense for an amount of Ps.50,000, Ps.0, and Ps.53,738, respectively, under the caption salaries and benefits. v) Long-term incentive plan (“LTIP”) and long term retention plan (LTRP) The Company has adopted a Long-term incentive plan (“LTIP”). This plan consists of a share purchase plan (equity-settled) and a share appreciation rights “SARs” plan (cash settled), and therefore accounted under IFRS 2 “Shared based payments”. This incentive plan has been granting annual extensions in the same terms from the original granted in 2014. During 2018, the Company approved a new long-term retention plan (“LTRP”), which consisted in a purchase plan (equity-settled). This plan does not include cash compensations granted through appreciation rights on the Company's shares. The retention plans granted in previous periods will continue in full force and effect until their respective due dates and the cash compensation derived from them will be settled according to the conditions established in each plan. vi) Share-based payments a) LTIP ● Share purchase plan (equity-settled) Certain key employees of the Company receive additional benefits through a share purchase plan denominated in Restricted Stock Units (“RSUs”), which has been classified as an equity-settled share-based payment. The cost of the equity-settled share purchase plan is measured at grant date, taking into account the terms and conditions on which the share options were granted. The equity-settled compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits, over the requisite service period (Note 17). During the years ended December 31, 2018, 2017 and 2016, the Company expensed Ps19,980, Ps.13,508 and Ps.7,816, respectively, related to RSUs granted under the LTIP and LTRP. The expenses were recorded under the caption salaries and benefits. ● SARs plan (cash settled) The Company granted SARs to key employees, which entitle them to a cash payment after a service period. The amount of the cash payment is determined based on the increase in the share price of the Company between the grant date and the time of exercise. The liability for the SARs is measured, initially and at the end of each reporting period until settled, at the fair value of the SARs, taking into account the terms and conditions on which the SARs were granted. The compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits, over the requisite service period (Note 17). During the years ended December 31, 2018, 2017 and 2016, the Company recorded a (benefit) expense for Ps.(186), Ps.(8,999), Ps.31,743, respectively, related to the SARs included in the LTIP. These amounts were recorded under the caption salaries and benefits. b) Management incentive plan (“MIP”) ● MIP I Certain key employees of the Company receive additional benefits through a share purchase plan, which has been classified as an equity-settled share-based payment. The equity-settled compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits, over the requisite service period (Note 17). The total cost of this plan has been totally recognized during the required service period. ● MIP II On February 19, 2016, the Board of Directors of the Company authorized an extension to the MIP for certain key employees, this plan was named MIP II. In accordance with this plan, the Company granted SARs to key employees, which entitle them to a cash payment after a service period. The amount of the cash payment is determined based on the increase in the share price of the Company between the grant date and the time of exercise. The liability for the SARs is measured initially and at the end of each reporting period until settled at the fair value of the SARs, taking into account the terms and conditions on which the SARs were granted. The compensation cost is recognized in the consolidated statement of operations under the caption of salaries and benefits, over the requisite service period (Note 17). During the years ended December 31, 2018, 2017 and 206, the Company recorded a (benefit) expense for Ps.(5,052), Ps.(16,499) and Ps.54,357, respectively, related to MIP II into the consolidated statement of operations. c) Board of Directors Incentive Plan (BODIP) Certain members of the Board of Directors of the Company receive additional benefits through a share-based plan, which has been classified as an equity-settled share-based payment and therefore accounted under IFRS 2 “Shared based payments”. In April 2018, the Board of Directors of the Company authorized a Board of Directors Incentive Plan “BoDIP”, for the benefit of certain board members. The BoDIP grants options to acquire shares of the Company or CPOs during a four years period with an exercise price share at Ps.16.12, which was determined on the grant date. Under this plan, no service or performance conditions are required to the board members for exercise the option to acquire shares, and therefore, they have the right to request the delivery of those shares at the time they pay for them. vii) Employee profit sharing The Mexican Income Tax Law (“MITL”), establishes that the base for computing current year employee profit sharing shall be the taxpayer’s taxable income of the year for income tax purposes, including certain adjustments established in the Income Tax Law, at the rate of 10%. For the years ended December 2018, 2017 and 2016, the employee profit sharing is Ps.14,106, Ps.8,342 and Ps.9,967, respectively, and is presented as an expense in the consolidated statements of operations. Subsidiaries in Central America do not have such profit sharing benefit, as it is not required by local regulation.
Leases	p) Leases The determination of whether an arrangement is, or contains a lease, is based on the substance of the arrangement at inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. Property and equipment lease agreements are recognized as finance leases if the risks and benefits incidental to ownership of the leased assets have been transferred to the Company when (i) the ownership of the leased asset is transferred to the Company upon termination of the lease; (ii) the agreement includes an option to purchase the asset at a reduced price; (iii) the term of the lease is for the major part of the economic life of the leased asset; (iv) the present value of minimum lease payments is at least substantially all of the fair value of the leased asset; or (v) the leased asset is of a specialized nature for the Company. When the risks and benefits incidental to the ownership of the leased asset remain mostly with the lessor, they are classified as operating leases and rental payments are charged to results of operations on a straight-line over the term of the lease. The Company’s lease contracts for aircraft, engines and components parts are classified as operating leases. Sale and leaseback The Company enters into sale and leaseback agreements whereby an aircraft or engine is sold to a lessor upon delivery and the lessor agrees to lease such aircraft or engine back to the Company. Leases under sale and leaseback agreements meet the conditions for treatment as operating leases. If a sale and lease back transaction is at fair value and results as an operating lease, any profit or loss is recognized immediately.
Other taxes and fees payable	q) Other taxes and fees payable The Company is required to collect certain taxes and fees from customers on behalf of government agencies and airports and to remit these to the applicable governmental entity or airport on a periodic basis. These taxes and fees include federal transportation taxes, federal security charges, airport passenger facility charges, and foreign arrival and departure fees. These charges are collected from customers at the time they purchase their tickets, but are not included in passenger revenue. The Company records a liability upon collection from the customer and discharges the liability when payments are remitted to the applicable governmental entity or airport.
Income taxes	r) Income taxes Current income tax Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences, except, in respect of taxable temporary differences associated with investments in subsidiaries when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry-forward of unused tax credits and any available tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax credits and available tax losses can be utilized, except, in respect of deductible temporary differences associated with investments in subsidiaries deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilized. The Company considers the following criteria in assessing the probability that taxable profit will be available against which the unused tax losses or unused tax credits can be utilized: (a) whether the entity has sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity, which will result in taxable amounts against which the unused tax losses or unused tax credits can be utilized before they expire; (b) whether it is probable that the Company will have taxable profits before the unused tax losses or unused tax credits expire; (c) whether the unused tax losses result from identifiable causes which are unlikely to recur; and (d) whether tax planning opportunities are available to the Company that will create taxable profit in the period in which the unused tax losses or unused tax credits can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction in OCI. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. The charge for income taxes incurred is computed based on tax laws approved in Mexico, Costa Rica and Guatemala at the date of the consolidated statement of financial position.
Derivative financial instruments and hedge accounting	s) 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, 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 have been effective throughout the financial reporting periods for which they were designated, hedge accounting treatment can be used. Under the cash flow hedge (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. During the years ended December 31, 2018, 2017 and 2016, 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, 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 are recognized in income.
Financial instruments - Disclosures	t) Financial instruments — Disclosures IFRS 7 requires a three-level hierarchy for fair value measurement disclosures and requires entities to provide additional disclosures about the relative reliability of fair value measurements (Notes 4 and 5).
Treasury shares	u) Treasury shares The Company’s equity instruments that are reacquired (treasury shares), are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of treasury shares. Any difference between the carrying amount and the consideration received, if reissued, is recognized in additional paid in capital. Share-based payment options exercised during the reporting period are settled with treasury shares (Note 17).
Operating segments	v) Operating segments Management of Controladora monitors the Company as a single business unit that provides air transportation and related services, accordingly it has only one operating segment. The Company has two geographic areas identified as domestic (Mexico) and international (United States of America and Central America) Note 24.
Current versus non-current classification	w) Current versus non-current classification The Company presents assets and liabilities in the consolidated statement of financial position based on current/non-current classification. An asset is current when it is: (i) expected to be realized or intended to be sold or consumed in normal operating cycle, (ii) expected to be realized within twelve months after the reporting period, or, (iii) cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: (i) it is expected to be settled in normal operating cycle, (ii) it is due to be settled within twelve months after the reporting period, or, (iii) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
Impact of new International Financial Reporting Standards	x) Impact of new International Financial Reporting Standards New and amended standards and interpretations already effective The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2018. The Company has not early adopted any other standard interpretation or amendment that has been issued but is not yet effective different from IFRS 9 that was adopted in the 2014 consolidated financial statements. Although these new standards and amendments applied for the first time in 2018, except for IFRS 15, they did not have a material impact on the annual consolidated financial statements of the Company. The nature and the impact of these changes to each new standard and amendment are described below: IFRIC 22 — Foreign Currency Transactions and Advance Considerations IFRIC 22 clarifies that the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. This interpretation does not have any impact on the Company’s consolidated financial statements. IFRS 15 Revenue from Contracts with Customers IFRS 15 was issued in May 2014 and amended in April 2016 and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in IFRS 15 provide a more structured approach to measuring and recognizing revenue. The new revenue standard will supersede all current revenue recognition requirements under IFRS. IFRS 15 also requires additional disclosures about the nature, timing, and uncertainty of revenue cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company adopted the new standard on the required effective date as of January 1, 2018, using the full retrospective method of adoption, in order to provide for comparative results in all periods presented, recognizing the effect in retained earnings as of January 1, 2016. In 2018, the Company modified certain amounts in the consolidated statements of financial position as of December 31, 2017 and in the consolidated statements of operations for the years period ended December 31, 2017 and 2016 as required by IAS 1 Presentation of Financial Statements, as part of the effect of adopting IFRS 15 is, as follows: Impact of adoption on the consolidated statements of financial position As previously Adjusted reported as of As of December December 31, 2017 Adjustment 31, 2017 Short-term liabilities Unearned transportation revenue Ps. 2,161,636 Ps. 131,673 Ps. 2,293,309 Equity Retained earnings Ps. 5,080,049 Ps. (131,673) Ps. 4,948,376 As previously Adjusted reported as of As of December December 31, 2016 Adjustment 31, 2016 Short-term liabilities Unearned transportation revenue Ps. 2,153,567 Ps. 74,484 Ps. 2,228,051 Equity Retained earnings Ps. 5,927,576 Ps. (74,484) Ps. 5,853,092 Impact of adoption on the consolidated statements of operations As previously Adjusted reported as of As of December December 31, 2017 Adjustment 31, 2017 Operating revenues Passenger revenues Fare revenues Ps. 17,791,317 Ps. — Ps. 17,791,317 Other passenger revenues — 6,098,504 6,098,504 Ps. 17,791,317 Ps. 6,098,504 Ps. 23,889,821 Non- passenger revenues Other non-passenger revenues Ps. 6,883,085 Ps. (6,155,693) Ps. 727,392 Cargo 170,973 — 170,973 Ps. 7,054,058 Ps. (6,155,693) Ps. 898,365 Ps. 24,845,375 Ps. (57,189) * Ps. 24,788,186 Operating expenses Ps. 24,826,733 — Ps. 24,826,733 Operating income (loss) 18,642 (57,189) (38,547) Net loss Ps. (594,599) Ps. (57,189) Ps. (651,788) As previously Adjusted reported as of As of December December 31, 2016 Adjustment 31, 2016 Operating revenues Passenger revenues Fare revenues Ps. 17,790,130 Ps. — Ps. 17,790,130 Other passenger revenues — 4,919,452 4,919,452 Ps. 17,790,130 Ps. 4,919,452 Ps. 22,709,582 Non- passenger revenues Other non-passenger revenues Ps. 5,550,698 Ps. (4,960,343) Ps. 590,355 Cargo 171,623 — 171,623 Ps. 5,722,321 Ps. (4,960,343) Ps. 761,978 Ps. 23,512,451 Ps. (40,891) * Ps. 23,471,560 Operating expenses Ps. 20,772,760 Ps. — Ps. 20,772,760 Operating income (loss) 2,739,691 (40,891) 2,698,800 Net income Ps. 3,519,489 Ps. (40,891) Ps. 3,478,598 Impact on basic and diluted earnings per share (EPS) As previously reported as of December 31, 2017 As Adjusted Loss per share Ps. (0.588) Ps. (0.644) As previously reported as of December 31, 2016 As Adjusted Earnings per share Ps. 3.478 Ps. 3.438 * The nature of the adjustments is described as follows: The main impact of the IFRS 15 adoption, is the timing of recognition of certain air travel-related services (“ancillaries”). Under IAS 18, certain ancillaries, such as channel fee, itinerary changes and more flexibility, were recognized as revenue at the time of the booking by customer (or when the service was provided); however, under IFRS 15, those ancillaries are recognized when the air transportation service is rendered (at the time of the flight) or at ticket expiration. This change arises primarily because those ancillaries do not constitute separate performance obligations but represent administrative tasks that do not constitute a distinct performance obligation and therefore should be accounted for together with the air fare as a single performance obligation of providing passenger transportation. Also, certain complimentary services including re-accommodation in other airlines provided to customers are recorded as reduction to revenues. Additionally, the classification of certain ancillary fees in the statement of operations, such as advanced seat selection, fees charges for excess baggage, itinerary changes and other air travel-related services, changed upon adoption of IFRS 15, since they are part of the single performance obligation of providing passenger transportation services. The Company has also identified and implemented changes to its accounting policies and practices, systems and controls, as well as designed and implemented specific controls over its evaluation of the impact of the new guidance on the Company, including the cumulative effect calculation, disclosure requirements and the collection of relevant data into the reporting process. Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash settled to equity settled. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if elected for all three amendments and other criteria are met. The Company’s accounting policy for cash-settled share-based payments is consistent with the approach clarified in the amendments. In addition, the Company has no share-based payment transaction with net settlement features for withholding tax obligations and had not made any modifications to the terms and conditions of its share-based payment transaction. Therefore, these amendments do not have any impact on the consolidated financial statements. New amended standards and interpretations not yet effective IFRS 16 Leases IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases, IFRIC 4 Determining Whether an Arrangement Contains a Lease, SIC‑15 Operating Leases-Incentives and SIC‑27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease . IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17. The standard includes two recognition exemptions for lessees — leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. In addition, for leases denominated in a foreign currency other than the functional currency of the Company (which is the Mexican Peso) the lease liability will be remeasured with a charge to foreign exchange of the period. IFRS 16 also requires lessees to make more extensive disclosures than under IAS 17. IFRS 16 is effective for annual periods beginning on or after January 1, 2019. Early application is permitted, but not before an entity applies IFRS 15. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain relief. Transition to IFRS 16 The Company adopted IFRS 16 on the mandatory date January 1, 2019, through the full retrospective method starting on January 1, 2017. The Company applied the standard to contracts that were previously identified as leases applying IAS 17 and IFRIC 4, see Note 14 for more information on the Company´s lease agreements. During 2018, the Company performed a detailed impact assessment of IFRS 16. In summary, the impact of IFRS 16 adoption is expected to be as follows: The estimated impact on the statements of financial situation as of January 1, 2017, December 31, 2017 and December 31, 2018: As of As of As of January 1, December 31, December 31, 2017 2017 2018 Assets Property, plant and equipment (Right-of-use-assets) Ps. 23,709,968 Ps. 25,075,501 Ps. 31,985,598 Deferred income tax 2,699,552 2,231,702 2,271,031 Prepaid expenses (266,959) — — Liabilities Lease liabilities Ps. 32,639,927 Ps. 32,436,015 Ps. 39,463,811 Equity Retained Earnings Ps. 6,497,366 The estimated impact on the statements of operations for the years ended December 31, 2017 and 2018: For the year For the year ended December ended December 31, 2017 31, 2018 Depreciation expense Ps. 3,522,738 Ps. 4,123,513 Operating lease expense (5,038,920) (5,718,657) Operating income (1,516,182) (1,595,144) Financial costs 1,381,027 1,682,420 Foreign exchange (gain) loss (1,434,290) 30,423 Income tax expense (benefit) 467,850 (39,328) Net (income) loss Ps. (1,101,595) Ps. 78,371 Due to the adoption of IFRS 16, the Company operating profit will improve, while its interest expense will increase. This is due to the change in the accounting for expenses of leases that were classified as operating leases under IAS 17. IFRIC 23 — Uncertainty over Income Tax Treatments IFRIC 23 clarifies the accounting for uncertainties in income taxes, the interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. An entity has to consider whether it is probable that the relevant authority will accept each tax treatment, or group of tax treatments, that it used or plans to use in its income tax filing; if the entity concludes that it is probable that a particular tax treatment is accepted, the entity has to determine taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment included in its income tax filings. IFRIC 23 is effective for annual reporting periods beginning on or after January 1, 2019. Earlier application is permitted. The Company expects to adopt this interpretation at the effective date.
Convenience translation	y) Convenience translation U.S. dollar amounts at December 31, 2018 shown in the consolidated financial statements have been included solely for the convenience of the reader and are translated from Mexican pesos, using an exchange rate of Ps.19.6829 per U.S. dollar, as reported by the Mexican Central Bank (Banco de México) as the rate for the payment of obligations denominated in foreign currency payable in Mexico in effect on December 31, 2018. 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 that 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.

Description of the business a_3

Description of the business and summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2018
Description of the business and summary of significant accounting policies
Schedule of companies included in the consolidated financial statements	Principal % Equity interest Name Activities Country 2018 2017 2016 Concesionaria Air transportation services for passengers, cargo and mail throughout Mexico and abroad Mexico 100 % 100 % 100 % Volaris Costa Rica Air transportation services for passengers, cargo and mail in Costa Rica and abroad Costa Rica 100 % 100 % 100 % Vuela, S.A. (“Vuela”)* Air transportation services for passengers, cargo and mail in Guatemala and abroad Guatemala 100 % 100 % 100 % Vuela El Salvador, S.A. de C.V.* Air transportation services for passengers, cargo and mail in El Salvador and abroad El Salvador 100 % — — Comercializadora Volaris, S.A. de C.V. Merchandising of services Mexico 100 % 100 % 100 % Servicios Earhart, S.A.* Recruitment and payroll Guatemala 100 % 100 % 100 % Servicios Corporativos Volaris, S.A. de C.V. (“Servicios Corporativos”) Recruitment and payroll Mexico 100 % 100 % 100 % Servicios Administrativos Volaris, S.A. de C.V. (“Servicios Administrativos”) Recruitment and payroll Mexico 100 % 100 % 100 % Comercializadora V Frecuenta, S.A. de C.V. (“Loyalty Program”)** Loyalty Program México 100 % — — Viajes Vuela, S.A. de C.V. (“Viajes Vuela”)(1) Travel agency Mexico 100 % 100 % 100 % Deutsche Bank México, S.A., Trust 1710 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % 100 % Deutsche Bank México, S.A., Trust 1711 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number F/307750 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number F/745291 Share administration trust (Note 17) Mexico 100 % 100 % 100 % Irrevocable Administrative Trust number CIB/3081 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % — — *The Companies have not started operations yet in Guatemala and El Salvador. **The Company has not started operations yet With effect from July 16, 2018, the name of the Company was changed from Operaciones Volaris, S.A. de C.V. to Viajes Vuela, S.A. de C.V.
Schedule of breakdown of revenues	At the flight time At the sale Total Revenue recognition as of December 31, 2018 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 12,336,095 Ps. 6,151,763 Ps. — Ps. — Ps. 18,487,858 Other Passenger Revenues 5,182,572 2,598,375 68,264 43,286 7,892,497 17,518,667 8,750,138 68,264 43,286 26,380,355 Non-Passenger Revenues Other Non-Passenger revenues 685,219 12,138 — — 697,357 Cargo 221,324 6,114 — — 227,438 Total Ps. 18,425,210 Ps. 8,768,390 Ps. 68,264 Ps. 43,286 Ps. 27,305,150 At the flight time At the sale Total Revenue recognition as of December 31, 2017 (Adjusted) Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 12,284,795 Ps. 5,506,522 Ps. — Ps. — Ps. 17,791,317 Other Passenger Revenues 4,087,664 1,992,696 11,283 6,861 6,098,504 16,372,459 7,499,218 11,283 6,861 23,889,821 Non-Passenger Revenues Other Non-Passenger revenues 723,297 4,095 — — 727,392 Cargo 165,907 5,066 — — 170,973 Total Ps. 17,261,663 Ps. 7,508,379 Ps. 11,283 Ps. 6,861 Ps. 24,788,186 At the flight time At the sale Total Revenue recognition as of December 31, 2016 (Adjusted) Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 11,701,014 Ps. 6,089,116 Ps. — Ps. — Ps. 17,790,130 Other Passenger Revenues 3,238,826 1,680,626 — — 4,919,452 14,939,840 7,769,742 — — 22,709,582 Non-Passenger Revenues Other Non-Passenger revenues 587,270 3,085 — — 590,355 Cargo 166,934 4,689 — — 171,623 Total Ps. 15,694,044 Ps. 7,777,516 Ps. — Ps. — Ps. 23,471,560
Schedule of transactions from unearned transportation revenues	2017 2016 2018 Adjusted Adjusted January 1, Ps. 2,293,309 Ps. 2,228,051 Ps. 1,957,254 Deferred 26,254,391 23,714,649 22,778,110 Recognized in revenue during the year (26,109,184) (23,649,391) (22,507,313) December 31, Ps. 2,438,516 Ps. 2,293,309 Ps. 2,228,051
Schedule of depreciation rates	Annual depreciation rate Aircraft parts and rotable spare parts 8.3-16.7% Aircraft spare engines 4.0-8.3% Standardization Remaining contractual lease term Computer equipment 25% Communications equipment 10% Office furniture and equipment 10% Electric power equipment 10% Workshop machinery and equipment 10% Service carts on board 20% Leasehold improvements to flight equipment The shorter of: (i) remaining contractual lease term, or (ii) the next major maintenance event
Schedule of exchange rates of local currencies translated to functional currencies	Exchange rates of local Exchange rates of local Exchange rates of local currencies translated to currencies translated to currencies translated to functional currencies functional currencies functional currencies Average Average Average Local Functional exchange rate Exchange rate exchange rate Exchange rate exchange rate Exchange rate Country currency currency for 2018 as of 2018 for 2017 as of 2017 for 2016 as of 2016 Costa Rica Colon U.S. dollar ₵. 580.8534 ₵. 609.6100 ₵. 572.2000 ₵. 572.5600 ₵. 564.3332 ₵. 561.1000 Guatemala Quetzal U.S. dollar Q. 7.5337 Q. 7.7440 Q. 7.3509 Q. 7.3448 Q. 7.4931 Q. 7.5221
Schedule of impact of adoption of IFRS 15 on the consolidated financial statements	As previously Adjusted reported as of As of December December 31, 2017 Adjustment 31, 2017 Short-term liabilities Unearned transportation revenue Ps. 2,161,636 Ps. 131,673 Ps. 2,293,309 Equity Retained earnings Ps. 5,080,049 Ps. (131,673) Ps. 4,948,376 As previously Adjusted reported as of As of December December 31, 2016 Adjustment 31, 2016 Short-term liabilities Unearned transportation revenue Ps. 2,153,567 Ps. 74,484 Ps. 2,228,051 Equity Retained earnings Ps. 5,927,576 Ps. (74,484) Ps. 5,853,092 Impact of adoption on the consolidated statements of operations As previously Adjusted reported as of As of December December 31, 2017 Adjustment 31, 2017 Operating revenues Passenger revenues Fare revenues Ps. 17,791,317 Ps. — Ps. 17,791,317 Other passenger revenues — 6,098,504 6,098,504 Ps. 17,791,317 Ps. 6,098,504 Ps. 23,889,821 Non- passenger revenues Other non-passenger revenues Ps. 6,883,085 Ps. (6,155,693) Ps. 727,392 Cargo 170,973 — 170,973 Ps. 7,054,058 Ps. (6,155,693) Ps. 898,365 Ps. 24,845,375 Ps. (57,189) * Ps. 24,788,186 Operating expenses Ps. 24,826,733 — Ps. 24,826,733 Operating income (loss) 18,642 (57,189) (38,547) Net loss Ps. (594,599) Ps. (57,189) Ps. (651,788) As previously Adjusted reported as of As of December December 31, 2016 Adjustment 31, 2016 Operating revenues Passenger revenues Fare revenues Ps. 17,790,130 Ps. — Ps. 17,790,130 Other passenger revenues — 4,919,452 4,919,452 Ps. 17,790,130 Ps. 4,919,452 Ps. 22,709,582 Non- passenger revenues Other non-passenger revenues Ps. 5,550,698 Ps. (4,960,343) Ps. 590,355 Cargo 171,623 — 171,623 Ps. 5,722,321 Ps. (4,960,343) Ps. 761,978 Ps. 23,512,451 Ps. (40,891) * Ps. 23,471,560 Operating expenses Ps. 20,772,760 Ps. — Ps. 20,772,760 Operating income (loss) 2,739,691 (40,891) 2,698,800 Net income Ps. 3,519,489 Ps. (40,891) Ps. 3,478,598 Impact on basic and diluted earnings per share (EPS) As previously reported as of December 31, 2017 As Adjusted Loss per share Ps. (0.588) Ps. (0.644) As previously reported as of December 31, 2016 As Adjusted Earnings per share Ps. 3.478 Ps. 3.438 * The nature of the adjustments is described as follows:
Schedule of impact of adoption of IFRS 16 (Leases) on the consolidated financial statements	As of As of As of January 1, December 31, December 31, 2017 2017 2018 Assets Property, plant and equipment (Right-of-use-assets) Ps. 23,709,968 Ps. 25,075,501 Ps. 31,985,598 Deferred income tax 2,699,552 2,231,702 2,271,031 Prepaid expenses (266,959) — — Liabilities Lease liabilities Ps. 32,639,927 Ps. 32,436,015 Ps. 39,463,811 Equity Retained Earnings Ps. 6,497,366 The estimated impact on the statements of operations for the years ended December 31, 2017 and 2018: For the year For the year ended December ended December 31, 2017 31, 2018 Depreciation expense Ps. 3,522,738 Ps. 4,123,513 Operating lease expense (5,038,920) (5,718,657) Operating income (1,516,182) (1,595,144) Financial costs 1,381,027 1,682,420 Foreign exchange (gain) loss (1,434,290) 30,423 Income tax expense (benefit) 467,850 (39,328) Net (income) loss Ps. (1,101,595) Ps. 78,371

Financial instruments and ris_2

Financial instruments and risk management (Tables)	12 Months Ended
	Dec. 31, 2018
Financial instruments and risk management
Schedule of notional amounts and strike prices of derivative financial instruments	Position as of December 31, 2018 Jet fuel Asian call and Zero-Cost collars option contracts maturities 1 Half 2019 2 Half 2019 2019 Total Jet fuel risk Asian Calls Notional volume in gallons (thousands)* 12,790 13,842 26,632 Strike price agreed rate per gallon (U.S.dollars)** US$ 1.84 US$ 1.84 US$ 1.84 Approximate percentage of hedge (of expected consumption value) 10 % 10 % 10 % Jet fuel risk Zero-Cost collars Notional volume in gallons (thousands)* 18,963 — 18,963 Strike price agreed rate per gallon (U.S. dollars)** US$ 1.91/2.46 US$ — US$ 1.91/2.46 Approximate percentage of hedge (of expected consumption value) 15 % — % 15 % All-in Approximate percentage of hedge (of expected consumption value) 25 % 10 % 18 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average Position as of December 31, 2017 Jet fuel Asian call option contracts maturities 1 Half 2018 2 Half 2018 2018 Total Jet fuel risk Notional volume in gallons (thousands)* 69,518 61,863 131,381 Strike price agreed rate per gallon (U.S.dollars)** US$ 1.6861 US$ 1.8106 US$ 1.7447 Approximate percentage of hedge (of expected consumption value) 60 % 50 % 55 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average Position as of December 31, 2016 Jet fuel Asian call option contracts maturities Jet fuel risk 1 Half 2017 2 Half 2017 2017 Total 1 Half 2018 3Q 2018 2018 Total Notional volume in gallons (thousands)* 55,436 63,362 118,798 62,492 7,746 70,238 Strike price agreed rate per gallon (U.S. dollars)** US$ 1.6245 US$ 1.4182 US$ 1.5145 US$ 1.6508 US$ 1.5450 US$ 1.6392 Approximate percentage of hedge (of expected consumption value) 51 % 53 % 52 % 45 % 10 % 24 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average
Schedule of foreign exchange on and off-balance sheet exposure	Thousands of U.S. dollars 2018 2017 2016 Assets: Cash and cash equivalents US$ 279,829 US$ 344,038 US$ 297,565 Other accounts receivable 10,957 13,105 11,619 Aircraft maintenance deposits paid to lessors 329,983 352,142 343,787 Deposits for rental of flight equipment 32,166 25,343 30,025 Derivative financial instruments 3,172 25,204 41,996 Total assets 656,107 759,832 724,992 Liabilities: Financial debt (Note 5) 155,455 128,296 76,789 Foreign suppliers 51,012 53,729 56,109 Taxes and fees payable 14,823 10,304 6,874 Derivative financial instruments 6,246 — 684 Total liabilities 227,536 192,329 140,456 Net foreign currency position US$ 428,571 US$ 567,503 US$ 584,536 Thousands of U.S. dollars 2018 2017 2016 Off-balance sheet transactions exposure: Aircraft and engine operating lease payments (Note 14) US$ 2,334,767 US$ 1,840,316 US$ 1,727,644 Aircraft and engine commitments (Note 23) 1,070,187 1,123,377 315,326 Total US$ 3,404,954 US$ 2,963,693 US$ 2,042,970
Schedule of contractual principal payments required on financial liabilities and derivative instruments fair value	December 31, 2018 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 734,635 Ps. 2,310,939 Ps. 3,045,574 Short-term working capital facilities (Note 5) 461,260 — 461,260 Derivative financial instruments: Jet fuel Asian Zero-Cost collars options contracts 122,948 — 122,948 Total Ps. 1,318,843 Ps. 2,310,939 Ps. 3,629,782 December 31, 2017 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 1,449,236 Ps. 1,079,152 Ps. 2,528,388 Short-term working capital facilities (Note 5) 948,354 — 948,354 Total Ps. 2,397,590 Ps. 1,079,152 Ps. 3,476,742 December 31, 2016 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 328,845 Ps. 943,046 Ps. 1,271,891 Short-term working capital facilities (Note 5) 716,290 — 716,290 Derivative financial instruments: Interest rate swaps contracts 14,144 — 14,144 Total Ps. 1,059,279 Ps. 943,046 Ps. 2,002,325
Schedule of sensitivity of US Gulf Coast Jet Fuel 54 Zero Cost Collars to a reasonably possible change in fuel prices, with all other variables held constant, on the caption of accumulated other comprehensive income	: Sensitivity of position as of December 31, 2018 effect on equity (thousands of U.S. dollars) US Gulf Coast Jet Fuel 54 spot level +5% 1.67 -5% (1.51)

Fair value measurements (Tables

Fair value measurements (Tables)	12 Months Ended
	Dec. 31, 2018
Fair value measurements
Schedule of carrying amounts and fair values of financial instruments	Carrying amount Fair value 2018 2017 2016 2018 2017 2016 Assets Derivative financial instruments Ps. 62,440 Ps. 497,403 Ps. 867,809 Ps. 62,440 Ps. 497,403 Ps. 867,809 Liabilities Financial debt (3,506,834) (3,476,742) (1,988,181) (3,515,550) (3,481,741) (1,988,445) Derivative financial instruments (122,948) — (14,144) (122,948) — (14,144) Total Ps. (3,567,342) Ps. (2,979,339) Ps. (1,134,516) Ps. (3,576,058) Ps. (2,984,338) Ps. (1,134,780) The following table summarizes the fair value measurements at December 31, 2018: Fair value measurement Quoted prices Significant Significant in active observable unobservable markets inputs inputs Level 1 Level 2 Level 3 Total Assets Derivatives financial instruments: Jet fuel Asian call options contracts* Ps. — Ps. 48,199 Ps. — Ps. 48,199 Foreign currency forward — 14,241 — 14,241 Liabilities Derivatives financial instruments: Jet fuel Asian Zero-Cost collars options contracts* — (122,948) — (122,948) Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (3,515,550) — (3,515,550) Net Ps. — Ps. (3,576,058) Ps. — Ps. (3,576,058) * Jet fuel forwards levels and LIBOR curve. ** LIBOR curve and TIIE Mexican interbank rate. Includes short-term and long-term debt. There were no transfers between level 1 and level 2 during the period. The following table summarizes the fair value measurements at December 31, 2017: Fair value measurement Quoted prices Significant Significant in active observable unobservable markets inputs inputs Level 1 Level 2 Level 3 Total Assets Derivatives financial instruments: Jet fuel Asian call options contracts* Ps. — Ps. 497,403 Ps. — Ps. 497,403 Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (3,481,741) — (3,481,741) Net Ps. — Ps. (2,984,338) Ps. — Ps. (2,984,338) * Jet fuel forwards levels and LIBOR curve. ** LIBOR curve and TIIE Mexican interbank rate. Includes short-term and long-term debt. There were no transfers between level 1 and level 2 during the period. The following table summarizes the fair value measurements at December 31, 2016: Fair value measurement Quoted prices Significant Significant in active observable unobservable markets inputs inputs Level 1 Level 2 Level 3 Total Assets Derivatives financial instruments: Jet fuel Asian call options contracts* Ps. — Ps. 867,809 Ps. — Ps. 867,809 Liabilities Derivatives financial instruments: Interest rate swap contracts** — (14,144) — (14,144) Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (1,988,445) — (1,988,445) Net Ps. — Ps. (1,134,780) Ps. — Ps. (1,134,780) * Jet fuel forwards levels and LIBOR curve. ** LIBOR curve and TIIE Mexican interbank rate. Includes short-term and long-term debt. There were no transfers between level 1 and level 2 during the period.
Schedule of (loss) gain on derivatives recognized in consolidated statements of operations and comprehensive income	Instrument Financial statements line 2018 2017 2016 Jet fuel Asian call options contracts Fuel Ps. (402,493) Ps. 26,980 Ps. 305,166 Foreign currency forward Aircraft and engine rent expenses (52,516) 11,290 — Interest rate swap contracts Aircraft and engine rent expenses — 13,827 48,777 Total Ps. (455,009) Ps. 52,097 Ps. 353,943 The following table summarizes the net (loss) gain on CFH before taxes recognized in the consolidated statements of comprehensive income for the years ended December 31, 2018, 2017 and 2016: Consolidated statements of other comprehensive (loss) income Financial Instrument statements line 2018 2017 2016 Jet fuel Asian call options Contracts OCI Ps. (174,984) Ps. (54,202) Ps. 583,065 Jet fuel Zero cost collars OCI (122,948) — — Interest rate swap contracts OCI — 14,144 41,629 Foreign currency forward OCI 14,241 (2,090) — Total (Note 22) Ps. (283,691) Ps. (42,148) Ps. 624,694

Financial assets and liabilit_2

Financial assets and liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Financial assets and liabilities
Schedule of financial assets	2018 2017 2016 Derivative financial instruments designated as cash flow hedges (effective portion recognized within OCI) Jet fuel Asian call options Ps. 48,199 Ps. 497,403 Ps. 867,809 Foreign currency forward contracts 14,241 — — Total financial assets Ps. 62,440 Ps. 497,403 867,809 Presented on the consolidated statements of financial position as follows: Current Ps. 62,440 Ps. 497,403 543,528 Non-current Ps. — Ps. — Ps. 324,281
Schedule of short-term and long-term debt	2018 2017 2016 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 May 31, 2022, bearing annual interest rate at the three-month LIBOR plus a spread of 260 basis points. Ps. 3,045,574 Ps. 2,528,388 Ps. 1,271,891 II. In December 2016, the Company entered into a short-term working capital facility with Banco Nacional de México S.A. (“Citibanamex”) in Mexican pesos, bearing annual interest rate at TIIE 28 days plus a 90 basis points. 461,260 948,354 406,330 III. In December 2016, the Company entered into a U.S. dollar denominated short-term working capital facility with Bank of America México S.A. Institución de Banca Múltiple (“Bank of America”) in U.S. dollars, bearing annual interest rate at the one-month LIBOR plus 160 basis points. — — 309,960 IV. Accrued interest 16,364 5,972 6,102 3,523,198 3,482,714 1,994,283 Less: Short-term maturities 1,212,259 2,403,562 1,051,237 Long-term Ps. 2,310,939 Ps. 1,079,152 Ps. 943,046 TIIE: Mexican interbank rate
Summary of scheduled principal payments of financial debt and accrued interest	2019 2020 2021 2022 Total Finance debt denominated in foreign currency: Santander/Bancomext Ps. 748,865 Ps. 1,508,757 Ps. 777,095 Ps. 25,087 Ps. 3,059,804 Citibanamex 463,394 — — — 463,394 Total Ps. 1,212,259 Ps. 1,508,757 Ps. 777,095 Ps. 25,087 Ps. 3,523,198
Schedule of changes in liabilities from financing activities	Current vs non- current January 1, Net cash Accrued Foreign exchange reclassification December, 31, 2018 Flows Interest movement and other 2018 Current interest-bearing loans and borrowings Ps. 2,403,562 Ps. (793,363) Ps. 10,392 Ps. 71,380 Ps. (479,712) Ps. 1,212,259 Non-current interest -bearing loans and borrowings 1,079,152 808,620 — (56,945) 480,112 2,310,939 Total liabilities from financing activities Ps. 3,482,714 Ps. 15,257 Ps. 10,392 Ps. 14,435 Ps. 400 Ps. 3,523,198 Current vs non- current January 1, Net cash Accrued Foreign exchange reclassification December, 31, 2017 Flows Interest movement and other 2017 Current interest-bearing loans and borrowings Ps. 1,051,237 Ps. 419,350 Ps. (130) Ps. 25,924 Ps. 907,181 Ps. 2,403,562 Non-current interest -bearing loans and borrowings 943,046 1,093,808 — (50,521) (907,181) 1,079,152 Total liabilities from financing activities Ps. 1,994,283 Ps. 1,513,158 Ps. (130) Ps. (24,597) Ps. — Ps. 3,482,714 Current vs non- current January 1, Net cash Accrued Foreign exchange reclassification December, 31, 2016 Flows Interest movement and other 2016 Current interest-bearing loans and borrowings Ps. 1,371,202 Ps. (753,897) Ps. (1,239) Ps. 121,269 Ps. 313,902 Ps. 1,051,237 Non-current interest - bearing loans and borrowings 219,817 938,681 — 98,450 (313,902) 943,046 Total liabilities from financing activities Ps. 1,591,019 Ps. 184,784 Ps. (1,239) Ps. 219,719 Ps. — Ps. 1,994,283
Schedule of other financial liabilities	2018 2017 2016 Derivative financial instruments designated as CFH (effective portion recognized within OCI): Zero cost collar options Ps. 122,948 Ps. — Ps. — Interest rate swap contracts — — 14,144 Total financial liabilities Ps. 122,948 Ps. — Ps. 14,144 Presented on the consolidated statements of financial position as follows: Current Ps. 122,948 Ps. — Ps. 14,144 Non-current Ps. — Ps. — Ps. —

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2018
Cash and cash equivalents
Summary of cash and cash equivalents	2018 2017 2016 Short-term investments Ps. 4,796,554 Ps. 5,982,314 Ps. 4,433,559 Cash in banks 1,061,150 963,162 2,632,878 Cash on hand 5,238 5,403 4,814 Total cash and cash equivalents Ps. 5,862,942 Ps. 6,950,879 Ps. 7,071,251

Related parties (Tables)

Related parties (Tables)	12 Months Ended
	Dec. 31, 2018
Related parties
Schedule of balances due from/to related parties	Country Type of transaction of origin 2018 2017 2016 Terms Due from: Frontier Airlines Inc. (“Frontier”) Code-share USA Ps. 8,266 Ps. — Ps. — 30 days Ps. 8,266 Ps. — Ps. — Country Type of transaction of origin 2018 2017 2016 Terms Due to: One Link, S.A. de C.V. (“One Link”) Call center fees El Salvador Ps. — Ps. 24,980 Ps. 33,775 30 days Aeromantenimiento, S.A. (“Aeroman”) Aircraft and engine maintenance El Salvador 15,024 15,951 30,627 30 days Frontier Airlines Inc. (“Frontier”) Code-share USA 2,751 — — 30 days SearchForce, Inc. (“SearchForce”) Internet services Mexico — — 620 30 days Ps. 17,775 Ps. 40,931 Ps. 65,022
Schedule of transactions with related parties	Related party transactions Country of origin 2018 2017 2016 Revenues: Transactions with affiliates Frontier Code-share USA Ps. 8,358 Ps. — Ps. — Expenses: Transactions with affiliates Aeroman Aircraft and engine maintenance El Salvador/Guatemala Ps. 341,726 Ps. 249,266 Ps. 304,399 One Link, Mijares Angoitia, Servprot and Human Capital Call center fees and other fees Mexico/El Salvador 4,800 202,689 173,197 Aeroman Technical support Mexico/El Salvador/Guatemala 4,796 8,088 8,105

Other accounts receivable, net

Other accounts receivable, net (Tables)	12 Months Ended
	Dec. 31, 2018
Other accounts receivable, net
Schedule of other accounts receivables	2018 2017 2016 Current: Credit cards Ps. 96,646 Ps. 191,322 Ps. 253,374 Benefits from suppliers 68,946 — — Other accounts receivable 101,487 117,582 26,236 Other points of sales 71,054 54,719 23,867 Affinity credit card 55,172 40,517 8,950 Cargo clients 41,408 34,655 29,901 Travel agencies and insurance commissions 39,806 27,925 20,477 Marketing services receivable 7,999 13,435 11,070 Airport services 9,991 5,898 9,479 Employees 27,274 8,878 7,551 Insurance claims — 1,345 55,815 519,783 496,276 446,720 Allowance for credit losses (11,304) (17,809) (19,317) Ps. 508,479 Ps. 478,467 Ps. 427,403
Schedule of aging of accounts receivable	2018 2018 Total 2017 2017 Total 2016 2016 Total Days Impaired Not impaired 2018 Impaired Not impaired 2017 Impaired Not impaired 2016 0–30 Ps. 8,725 Ps. 388,644 Ps. 397,369 Ps. 16,962 Ps. 415,847 Ps. 432,809 Ps. 15,723 Ps. 398,721 Ps. 414,444 31–60 — 69,648 69,648 — 38,705 38,705 — 11,231 11,231 61–90 — 27,138 27,138 — 17,918 17,918 — 14,492 14,492 91–120 2,579 23,049 25,628 847 5,997 6,844 3,594 2,959 6,553 Ps. 11,304 Ps. 508,479 Ps. 519,783 Ps. 17,809 Ps. 478,467 Ps. 496,276 Ps. 19,317 Ps. 427,403 Ps. 446,720
Schedule of movement in the allowance for doubtful accounts	Balance as of January 1, 2016 Ps. (24,612) Write-offs 14,459 Increase in allowance (9,164) Balance as of December 31, 2016 (19,317) Write-offs 6,228 Increase in allowance (4,720) Balance as of December 31, 2017 (17,809) Write-offs 17,126 Increase in allowance (10,621) Balance as of December 31, 2018 Ps. (11,304)

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2018
Inventories
Schedule of inventories	2018 2017 2016 Spare parts and accessories of flight equipment Ps. 289,737 Ps. 285,185 Ps. 235,330 Miscellaneous supplies 7,534 9,665 8,554 Ps. 297,271 Ps. 294,850 Ps. 243,884

Prepaid expenses and other cu_2

Prepaid expenses and other current assets (Tables)	12 Months Ended
	Dec. 31, 2018
Prepaid expenses and other current assets
Summary of prepaid expenses and other current assets	2018 2017 2016 Advances to suppliers Ps. 273,251 Ps. 346,263 Ps. 705,105 Prepaid aircraft rent 274,254 215,784 668,306 Prepaid insurance 76,896 68,712 47,663 Other prepaid expenses 22,682 65,642 33,555 Sales commission to travel agencies (Note 1d) 59,620 54,501 73,413 Advances for constructions of aircraft and engines — 13,764 31,437 Loss on sale and leaseback transactions to be amortized (Note 14) 3,047 3,047 3,047 Ps. 709,750 Ps. 767,713 Ps. 1,562,526

Guarantee deposits (Tables)

Guarantee deposits (Tables)	12 Months Ended
	Dec. 31, 2018
Guarantee deposits
Schedule of guarantee deposits	2018 2017 2016 Current asset: Aircraft maintenance deposits paid to lessors (Note 1j) Ps. 729,899 Ps. 1,317,663 Ps. 1,145,913 Deposits for rental of flight equipment 1,220 17,178 14,155 Other guarantee deposits 59,516 18,052 7,141 790,635 1,352,893 1,167,209 Non-current asset: Aircraft maintenance deposits paid to lessors (Note 1j) 5,765,122 5,631,304 5,951,831 Deposits for rental of flight equipment 531,261 441,110 589,804 Other guarantee deposits 41,113 25,838 18,243 6,337,496 6,098,252 6,559,878 Ps. 7,128,131 Ps. 7,451,145 Ps. 7,727,087

Rotable spare parts, furnitur_2

Rotable spare parts, furniture and equipment, net (Tables)	12 Months Ended
	Dec. 31, 2018
Rotable spare parts, furniture and equipment, net
Summary of rotable spare parts, furniture and equipment, net	Gross value Accumulated depreciation Net carrying value At December At December At December At December At December At December At December At December At December 31, 2018 31, 2017 31, 2016 31, 2018 31, 2017 31, 2016 31, 2018 31, 2017 31, 2016 Leasehold improvements to flight equipment Ps. 3,221,167 Ps. 2,382,687 Ps. 1,709,868 Ps. (2,083,053) Ps. (1,769,589) Ps. (1,386,844) Ps. 1,138,114 Ps. 613,098 Ps. 323,024 Pre-delivery payments 3,672,090 2,783,303 1,206,330 — — — 3,672,090 2,783,303 1,206,330 Aircraft parts and rotable spare parts 609,232 506,735 393,522 (233,403) (181,091) (137,712) 375,829 325,644 255,810 Aircraft spare engines 323,410 323,410 323,025 (34,917) (18,132) (1,337) 288,493 305,278 321,688 Construction and improvements in process 142,738 193,607 255,374 — — — 142,738 193,607 255,374 Standardization 203,611 192,808 176,975 (127,136) (113,407) (94,864) 76,475 79,401 82,111 Constructions and improvements 132,446 131,503 120,886 (117,211) (106,335) (85,873) 15,235 25,168 35,013 Computer equipment 44,563 30,113 24,172 (28,016) (20,790) (16,972) 16,547 9,323 7,200 Workshop tools 23,454 20,500 20,500 (20,085) (18,229) (15,915) 3,369 2,271 4,585 Electric power equipment 15,438 15,439 14,818 (10,316) (9,185) (7,890) 5,122 6,254 6,928 Communications equipment 12,305 11,229 9,261 (7,394) (6,502) (5,706) 4,911 4,727 3,555 Workshop machinery and equipment 9,530 8,405 7,240 (5,049) (4,345) (3,622) 4,481 4,060 3,618 Motorized transport equipment platform 5,496 5,587 5,703 (5,050) (4,701) (4,346) 446 886 1,357 Service carts on board 5,403 5,403 5,403 (5,277) (5,021) (4,645) 126 382 758 Office furniture and equipment 66,546 44,749 36,310 (28,240) (22,454) (18,653) 38,306 22,295 17,657 Total Ps. 8,487,429 Ps. 6,655,478 Ps. 4,309,387 Ps. (2,705,147) Ps. (2,279,781) Ps. (1,784,379) Ps. 5,782,282 Ps. 4,375,697 Ps. 2,525,008 *During the years ended December 31, 2018, 2017 and 2016, the Company capitalized borrowing costs of Ps.357,920, Ps.193,389 and Ps.95,445, respectively. The amount of this line is net of disposals of capitalized borrowing costs related to sale and leaseback transactions of Ps.242,678, Ps.110,274 and Ps.84,936, respectively. Motorized Workshop Aircraft parts Constructions transport machinery Service Construction and Leasehold and rotable spare Aircraft spare and Computer Office furniture Electric power Workshop equipment Communications and carts on Pre-delivery improvements improvements to parts Engines improvements Standardization equipment and equipment equipment Tools platform equipment equipment board payments in process flight equipment Total Net book amount as of December 31, 2015 Ps. 179,947 Ps. — Ps. 18,202 Ps. 83,886 Ps. 4,195 Ps. 12,932 Ps. 9,033 Ps. 4,815 Ps. 1,326 Ps. 3,764 Ps. 4,179 Ps. 1,453 Ps. 1,583,835 Ps. 140,926 Ps. 501,157 Ps. 2,549,650 Additions 110,592 323,025 2,218 21,953 740 517 1,467 4,217 505 129 131 36 1,345,081 161,560 226,526 2,198,697 Disposals and transfers (1,299) — — — — (110) (1,626) — (49) — — — (1,733,093) (2,132) — (1,738,309) Borrowing costs, net* — — — — — — — — — — — — 10,507 — — 10,507 Other movements — — 32,441 — 4,814 7,877 — 25 46 493 — — — (44,980) — 716 Depreciation (33,430) (1,337) (17,848) (23,728) (2,549) (3,559) (1,946) (4,472) (471) (831) (692) (731) — — (404,659) (496,253) As of December 31, 2016 255,810 321,688 35,013 82,111 7,200 17,657 6,928 4,585 1,357 3,555 3,618 758 1,206,330 255,374 323,024 2,525,008 Cost 393,522 323,025 120,886 176,975 24,172 36,310 14,818 20,500 5,703 9,261 7,240 5,403 1,206,330 255,374 1,709,868 4,309,387 Accumulated depreciation (137,712) (1,337) (85,873) (94,864) (16,972) (18,653) (7,890) (15,915) (4,346) (5,706) (3,622) (4,645) — — (1,386,844) (1,784,379) Net book amount as of December 31, 2016 Ps. 255,810 Ps. 321,688 Ps. 35,013 Ps. 82,111 Ps. 7,200 Ps. 17,657 Ps. 6,928 Ps. 4,585 Ps. 1,357 Ps. 3,555 Ps. 3,618 Ps. 758 Ps. 1,206,330 Ps. 255,374 Ps. 323,024 Ps. 2,525,008 Additions 115,173 385 — 15,833 1,845 6,805 — — — — 123 — 1,707,805 206,932 529,331 2,584,232 Disposals and transfers (930) — — — — (15) — — — — — — (213,947) (3,555) (101,224) (319,671) Borrowing costs, net* — — — — — — — — — — — — 83,115 — — 83,115 Other movements — — 10,371 — 4,087 1,649 620 — — 1,968 1,041 — — (265,144) 244,712 (696) Depreciation (44,409) (16,795) (20,216) (18,543) (3,809) (3,801) (1,294) (2,314) (471) (796) (722) (376) — — (382,745) (496,291) As of December 31, 2017 325,644 305,278 25,168 79,401 9,323 22,295 6,254 2,271 886 4,727 4,060 382 2,783,303 193,607 613,098 4,375,697 Cost 506,735 323,410 131,503 192,808 30,113 44,749 15,439 20,500 5,587 11,229 8,405 5,403 2,783,303 193,607 2,382,687 6,655,478 Accumulated depreciation (181,091) (18,132) (106,335) (113,407) (20,790) (22,454) (9,185) (18,229) (4,701) (6,502) (4,345) (5,021) — — (1,769,589) (2,279,781) Net book amount as of December 31, 2017 Ps. 325,644 Ps. 305,278 Ps. 25,168 Ps. 79,401 Ps. 9,323 Ps. 22,295 Ps. 6,254 Ps. 2,271 Ps. 886 Ps. 4,727 Ps. 4,060 Ps. 382 Ps. 2,783,303 Ps. 193,607 Ps. 613,098 Ps. 4,375,697 Additions 106,240 260,131 689 10,803 5,316 652 — 2,673 — 1,050 1,040 — 1,485,643 142,703 676,457 2,693,397 Disposals and transfers (1,735) (260,131) — — — — — — — — (2) — (712,098) (89) — (974,055) Borrowing costs, net* — — — — — — — — — — — — 115,242 — — 115,242 Other movements — — 67 — 9,123 21,568 — 281 42 26 110 — — (193,483) 162,023 (243) Depreciation (54,320) (16,785) (10,689) (13,729) (7,215) (6,209) (1,132) (1,856) (482) (892) (727) (256) — — (313,464) (427,756) As of December 31, 2018 375,829 288,493 15,235 76,475 16,547 38,306 5,122 3,369 446 4,911 4,481 126 3,672,090 142,738 1,138,114 5,782,282 Cost 609,232 323,410 132,446 203,611 44,563 66,546 15,438 23,454 5,496 12,305 9,530 5,403 3,672,090 142,738 3,221,167 8,487,429 Accumulated depreciation (233,403) (34,917) (117,211) (127,136) (28,016) (28,240) (10,316) (20,085) (5,050) (7,394) (5,049) (5,277) — — (2,083,053) (2,705,147) Net book amount as of December 31, 2018 Ps. 375,829 Ps. 288,493 Ps. 15,235 Ps. 76,475 Ps. 16,547 Ps. 38,306 Ps. 5,122 Ps. 3,369 Ps. 446 Ps. 4,911 Ps. 4,481 Ps. 126 Ps. 3,672,090 Ps. 142,738 Ps. 1,138,114 Ps. 5,782,282

Intangible assets, net (Tables)

Intangible assets, net (Tables)	12 Months Ended
	Dec. 31, 2018
Intangible assets, net
Schedule of intangible assets, net	Useful Gross value Accumulated amortization Net carrying amount life At December 31, years 2018 2017 2016 2018 2017 2016 2018 2017 2016 Software 1 - 4 s Ps. 503,467 Ps. 441,803 Ps. 313,028 Ps. (324,343) Ps. (251,383) Ps. (198,987) Ps. 179,124 Ps. 190,420 Ps. 114,041 Balance as of January 1, 2016 Ps. 94,649 Additions 60,792 Disposals (1,277) Amortization (40,290) Exchange differences 167 Balance as of January 1, 2017 114,041 Additions 130,908 Disposals (1,976) Amortization (52,396) Exchange differences (157) Balance as of December 31, 2017 190,420 Additions 71,007 Disposals (9,368) Amortization (72,885) Exchange differences (50) Balance as of December 31, 2018 Ps. 179,124

Operating leases (Tables)

Operating leases (Tables)	12 Months Ended
	Dec. 31, 2018
Operating leases
Schedule of composition of fleet and spare engines, operating leases	*: At December At December At December Aircraft Type Model 31, 2018 31, 2017 31, 2016 A319 132 4 6 6 A319 133 4 6 9 A320 233 39 39 39 A320 232 4 4 4 A320NEO 271N 12 6 1 A321 231 10 10 10 A321NEO 271N 4 — — 77 71 69 At December At December At December Engine Type Model 31, 2018 31, 2017 31, 2016 V2500 V2527M-A5 3 3 3 V2500 V2527E-A5 3 3 4 V2500 V2527-A5 2 2 4 PW1100 PW1127G-JM 2 — — 10 8 11 * Certain of the Company’s aircraft and engine lease agreements include an option to extend the lease term period. Terms and conditions are subject to market conditions at the time of renewal.
Schedule of rental expense charged to results of operations	2018 2017 2016 Aircraft and engine (Note 1p) Ps. 6,314,930 Ps. 6,072,502 Ps. 5,590,058 Real estate: Airports facilities 56,288 44,251 40,591 Offices, maintenance warehouse and hangar (Note 20) 36,483 30,544 33,517 Total rental expenses on real estate 92,771 74,795 74,108 Total cost of operating leases Ps. 6,407,701 Ps. 6,147,297 Ps. 5,664,166
Aircraft and engines
Operating leases
Schedule of future minimum lease payments	Aircraft operating leases Engine operating leases in Mexican in Mexican in U.S. dollars pesos (1) in U.S. dollars pesos (1) 2019 US$ 301,632 Ps. 5,936,992 US$ 7,314 Ps. 143,961 2020 296,205 5,830,173 6,694 131,757 2021 288,462 5,677,769 6,537 128,667 2022 275,451 5,421,674 6,064 119,357 2023 238,970 4,703,623 5,066 99,714 2024 and thereafter 897,251 17,660,502 5,121 100,796 Total US$ 2,297,971 Ps. 45,230,733 US$ 36,796 Ps. 724,252 (1) Using the exchange rate as of December 31, 2018 of Ps. 19.6829
Land and buildings
Operating leases
Schedule of future minimum lease payments	Operating leases Equivalent in Operating leases denominated in Mexican denominated in U.S. dollars pesos* Mexican pesos 2019 US$ 9,754 Ps. 191,989 Ps. 131,166 2020 6,017 118,428 88,237 2021 3,111 61,243 16,114 2022 1,763 34,691 13,302 2023 721 14,201 10,108 2024 and thereafter 3,534 69,553 33,459 Total US$ 24,900 Ps. 490,105 Ps. 292,386 *Convenience translation to U.S. dollars (Ps. 19.6829)

Accrued liabilities (Tables)

Accrued liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Accrued liabilities
Schedule of analysis of accrued liabilities	2018 2017 2016 Fuel and traffic accrued expenses Ps. 1,315,363 Ps. 1,106,913 Ps. 922,607 Maintenance and aircraft parts accrued expenses 79,280 194,366 130,897 Sales, marketing and distribution accrued expenses 283,538 143,758 102,880 Maintenance deposits 141,371 132,519 179,288 Salaries and benefits 187,072 114,781 170,994 Accrued administrative expenses 67,306 90,459 80,981 Aircraft and engine lease extension benefit (Note 1j) 50,796 83,047 85,124 Deferred revenue from VClub membership 59,557 76,261 32,771 Information and communication accrued expenses 45,008 44,638 32,950 Supplier services agreement 10,634 10,634 6,333 Depositary services benefit — 1,473 2,068 Advances from travel agencies 482 650 1,536 Others 77,985 51,474 37,010 Ps. 2,318,392 Ps. 2,050,973 Ps. 1,785,439
Schedule of accrued liabilities long term	2018 2017 2016 Aircraft and engine lease extension benefit (Note 1j) Ps. 61,730 Ps. 107,400 Ps. 127,831 Supplier services agreement 66,539 77,174 4,350 Depositary services benefit — — 1,473 Other 8,964 15,274 36,154 Ps. 137,233 Ps. 199,848 Ps. 169,808
Schedule of other liabilities	Balance as of Balance as of January 1, Increase for December 31, 2018 the year Payments 2018 Aircraft lease return obligation Ps. 488,383 Ps. 774,614 Ps. 832,323 Ps. 430,674 Employee profit sharing (Note 16) 9,063 14,106 8,185 14,984 Ps. 497,446 Ps. 788,720 Ps. 840,508 Ps. 445,658 Short-term maturities Ps. 117,724 Long-term Ps. 327,934 Balance as of Balance as of January 1, Increase for December 31, 2017 the year Payments 2017 Aircraft lease return obligation Ps. 410,060 Ps. 937,982 Ps. 859,659 Ps. 488,383 Employee profit sharing (Note 16) 10,695 8,342 9,974 9,063 Ps. 420,755 Ps. 946,324 Ps. 869,633 Ps. 497,446 Short-term maturities Ps. 280,744 Long-term Ps. 216,702 Balance as of Balance as of January 1, Increase for December 31, 2016 the year Payments 2016 Aircraft lease return obligation Ps. 149,326 Ps. 1,025,757 Ps. 765,023 Ps. 410,060 Employee profit sharing (Note 16) 10,173 9,967 9,445 10,695 Ps. 159,499 Ps. 1,035,724 Ps. 774,468 Ps. 420,755 Short-term maturities Ps. 284,200 Long-term Ps. 136,555

Employee benefits (Tables)

Employee benefits (Tables)	12 Months Ended
	Dec. 31, 2018
Employee benefits
Schedule of analysis of net period cost	2018 2017 2016 Analysis of net period cost: Current service cost Ps. 4,977 Ps. 3,657 Ps. 2,421 Interest cost on benefit obligation 1,424 1,000 701 Net period cost Ps. 6,401 Ps. 4,657 Ps. 3,122
Schedule of changes in defined benefit obligation	2018 2017 2016 Defined benefit obligation at January 1, Ps. 19,289 Ps. 13,438 Ps. 10,056 Net period cost charged to profit or loss: Current service cost 4,977 3,657 2,421 Interest cost on benefit obligation 1,423 1,000 701 Remeasurement losses in other comprehensive income: Actuarial changes arising from changes in assumptions (5,989) 1,776 442 Payments made (1,547) (582) (182) Defined benefit obligation at December 31, Ps. 18,153 Ps. 19,289 Ps. 13,438
Summary of significant assumptions used in the computation of the seniority premium obligations	2018 2017 2016 Financial: Discount rate 9.91 % 7.72 % 7.78 % Expected rate of salary increases 5.65 % 5.50 % 5.50 % Annual increase in minimum salary 4.15 % 4.00 % 4.00 % Biometric: Mortality (1) EMSSA 09 EMSSA 09 EMSSA 09 Disability (2) IMSS-97 IMSS-97 IMSS-97 (1) Mexican Experience of social security (EMSSA). (2) Mexican Experience of Instituto Mexicano del Seguro Social (IMSS).
Schedule of accruals for short-term employee benefits	2018 2017 2016 Employee profit-sharing (Note 15c) Ps. 14,984 Ps. 9,063 Ps. 10,695

Share-based payments (Tables)

Share-based payments (Tables)	12 Months Ended
	Dec. 31, 2018
Share-based payments
Schedule of movement in number of shares under share purchase payment plans	Number of Series A shares Outstanding as of December 31, 2015 617,001 Purchased during the year 513,002 Granted during the year — Exercised/vested during the year (425,536) Forfeited during the year (86,419) Outstanding as of December 31, 2016 618,048 * Purchased during the year 547,310 Granted during the year — Exercised/vested during the year (345,270) Forfeited during the year — Outstanding as of December 31, 2017 820,088 * Purchased during the year 3,208,115 Granted during the year — Exercised/vested during the year (353,457) Forfeited during the year (121,451) Outstanding as of December 31, 2018 3,553,295 * *These shares are presented as treasury shares in the consolidated statement of financial position as of December 31, 2018, 2017 and 2016.
Schedule of weighted average assumptions used to estimate the fair market value of the MIP at the date of grant	2012 Dividend yield (%) 0.00 % Volatility (%) 37.00 % Risk–free interest rate (%) 5.96 % Expected life of share options (years) 8.8 Exercise share price (in Mexican pesos Ps.) 5.31 Exercise multiple 1.1 Fair value of the stock at grant date 1.73
Schedule of movement in number of shares options and fixed exercise prices	Total in Number of share Exercise price thousands of options in Mexican pesos Mexican pesos Outstanding as of December 31, 2015 15,857,856 Ps. 5.31 Ps. 84,269 Granted during the year — — — Forfeited during the year — — — Exercised during the year (3,299,999) 5.31 (17,536) Outstanding as of December 31, 2016 12,557,857 Ps. 5.31 Ps. 66,733 Granted during the year — — — Forfeited during the year — — — Exercised during the year (120,000) 5.31 (638) Outstanding as of December 31, 2017 12,437,857 Ps. 5.31 Ps. 66,095 Granted during the year — — — Forfeited during the year — — — Exercised during the year (2,003,876) 5.31 (10,654) Outstanding as of December 31, 2018 10,433,981 Ps. 5.31 Ps. 55,441
Schedule of retention plan expenses recognized	2018 2017 2016 (Benefit) expense arising from cash-settled share-based payments transactions Ps. (5,238) Ps. (25,498) Ps. 86,100 Expense arising from equity-settled share-based payments transactions 19,980 13,508 7,816 Total expense (benefit) arising from share-based payments transactions Ps. 14,742 Ps. (11,990) Ps. 93,916
Share purchase plan
Share-based payments
Schedule of vesting period of shares granted	Number of Series A shares Vesting period 1,284,373 November 2018 - 2019 1,207,862 November 2019 - 2020 1,061,060 November 2020 - 2021 3,553,295
SARs - cash settled
Share-based payments
Schedule of vesting period of shares granted	Number of SARs Exercisable date 1,348,777 November 2019 757,809 November 2020 2,106,586 *
MIP II
Share-based payments
Schedule of vesting period of shares granted	Number of SARs Vesting date 1,695,500 February 2019 2,825,840 February 2020 3,391,020 February 2021 7,912,360 * * Includes forfeited SARs of 1,563,520, 0, and 0, for the years ended December 31, 2018, 2017 and 2016, respectively.

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2018
Equity
Schedule of basic and diluted (loss) earnings per share	At December 31, 2018 2017 2016 Net (loss) income for the period Ps. (682,500) Ps. (651,788) Ps. 3,478,598 Weighted average number of shares outstanding (in thousands): Basic 1,011,877 1,011,877 1,011,877 Diluted 1,011,877 1,011,877 1,011,877 LPS -EPS: Basic (0.674) (0.644) 3.438 Diluted (0.674) (0.644) 3.438

Income tax (Tables)

Income tax (Tables)	12 Months Ended
	Dec. 31, 2018
Income tax
Schedule of income tax in consolidated statements of operations	2018 2017 2016 Current year income tax expense Ps. (232,824) Ps. (51,313) Ps. (706,244) Deferred income tax benefit (expense) 471,060 * 212,488 ** (750,938) *** Total income tax benefit (expense) Ps. 238,236 Ps. 161,175 Ps. (1,457,182) *Includes translation effect by Ps.2,683 **Includes translation effect by Ps.1,008 ***Includes translation effect by Ps.1,242
Schedule of income tax in consolidated statements of OCI	2018 2017 2016 Deferred tax related to items recognized in OCI during the year Net gain (loss) on cash flow hedges Ps. 85,107 Ps. 12,017 Ps. (187,408) Remeasurement (loss) gain of employee benefits (1,797) 533 132 Deferred tax charged to OCI Ps. 83,310 Ps. 12,550 Ps. (187,276)
Schedule of reconciliation of corporate income tax rate to effective tax rate	2018 2017 2016 Statutory income tax rate 30.00 % 30.00 % 30.00 % Non-deductible expenses (3.53) % (3.90) % 0.28 % Unrecorded deferred taxes on tax losses (5.56) % (14.55) % 0.09 % Foreign countries difference with Mexican statutory rate (0.02) % (0.32) % 0.04 % Inflation of tax losses 1.79 % 1.50 % (0.01) % Amendment tax return effects and other tax adjustments (0.08) % (0.31) % (0.11) % Inflation on furniture, intangible and equipment 2.91 % 4.91 % (0.38) % Annual inflation adjustment 0.36 % 4.00 % (0.63) % 25.87 % 21.33 % 29.28 %
Schedule of consolidated deferred taxes	2018 2017 2016 Consolidated Consolidated Consolidated statement of Consolidated statement of Consolidated statement of Consolidated financial statement of financial statement of financial statement of position operations position operations position operations Deferred income tax assets: Intangible Ps. 460,590 Ps. (2,621) Ps. 463,211 Ps. (18,415) Ps. 481,626 Ps. (16,637) Provisions 324,445 (27,544) 351,989 8,695 343,294 56,727 Tax losses available for offsetting against future taxable income 309,320 (33,762) 343,082 309,758 33,324 (25,030) Extension lease agreement 149,305 6,170 143,135 41,411 101,724 25,405 Unearned transportation revenue 735,355 699,414 35,941 (29,814) 65,755 7,039 Allowance for doubtful accounts 4,902 (2,422) 7,324 433 6,891 (2,179) Employee benefits 5,446 1,456 5,786 1,222 4,031 886 Employee profit sharing 4,493 1,777 2,716 (490) 3,206 158 Financial instruments 35,955 — (49,151) — (61,168) — 2,029,811 642,468 1,304,033 312,800 978,683 46,369 Deferred income tax liabilities: Supplemental rent 1,595,519 32,156 1,563,363 223,753 1,339,610 363,783 Rotable spare parts, furniture and equipment, net 645,024 168,107 476,917 108,890 368,027 103,926 Prepaid expenses and other assets 170,466 (25,686) 196,152 (239,586) 435,738 280,660 Inventories 88,895 726 88,169 15,286 72,883 23,979 Other prepayments 32,057 (1,212) 33,269 (7,023) 40,292 23,717 2,531,961 174,091 2,357,870 101,320 2,256,550 796,065 Ps. (502,150) Ps. 468,377 Ps. (1,053,837) Ps. 211,480 Ps. (1,277,867) Ps. (749,696)
Schedule of components of deferred taxes in the consolidated statement of financial position	2018 2017 2016 Reflected in the consolidated statement of financial position as follows: Deferred tax assets Ps. 593,302 Ps. 562,445 Ps. 559,083 Deferred tax liabilities (1,095,452) (1,616,282) (1,836,950) Deferred tax liability, net Ps. (502,150) Ps. (1,053,837) Ps. (1,277,867)
Schedule of reconciliation of deferred tax liability, net	2018 2017 2016 Opening balance as of January 1, Ps. (1,053,837) Ps. (1,277,867) Ps. (340,895) Deferred income tax benefit (expense) during the current year recorded on profits 468,377 211,480 (749,696) Deferred income tax benefit (expense) during the current year recorded in accumulated other comprehensive income (loss) 83,310 12,550 (187,276) Closing balance as of December 31, Ps. (502,150) Ps. (1,053,837) Ps. (1,277,867)
Schedule of available tax carry-forwards	An analysis of the available tax losses carry-forward of the Company at December 31, 2018 is as follows: Year Historical Restated Total remaining Year of of loss Loss tax loss Utilized amount expiration 2016 Ps. 57,414 Ps. 57,414 Ps. — Ps. 57,414 2016 52,221 57,215 57,215 — 2017 300,613 300,613 — 300,613 2017 1,068,498 1,150,140 122,359 1,027,781 2018 170,731 170,731 — 170,731 2018 3,191 3,290 — 3,290 Ps. 1,652,668 Ps. 1,739,403 Ps. 179,574 Ps. 1,559,829 A breakdown of available tax loss carry-forward of Controladora and its subsidiaries at December 31, 2018 is as follows: Historical Restated Total loss tax loss Utilized remaining amount Comercializadora Ps. 52,221 Ps. 57,215 Ps. 57,215 Ps. — Concesionaria 1,067,836 1,149,425 122,359 1,027,066 Operaciones Volaris 3,853 4,005 — 4,005 Vuela Aviación 528,758 528,758 — 528,758 Ps. 1,652,668 Ps. 1,739,403 Ps. 179,574 Ps. 1,559,829 Unrecognized NOLs (528,758) Ps. 1,031,071 Tax rate 30 % Deferred income tax Ps. 309,320
Schedule of tax balances	2018 Restated contributed capital account ( Cuenta de capital de aportación or “CUCA”) Ps. 3,917,548 CUFIN* 3,107,037 *The calculation comprises all the subsidiaries of the Company.

Other operating income and ex_2

Other operating income and expenses (Tables)	12 Months Ended
	Dec. 31, 2018
Other operating income and expenses
Schedule of other operating income	2018 2017 2016 Gain on sale and leaseback (Note 14c) Ps. 609,168 Ps. 65,886 Ps. 484,827 Loss on sale of rotable spare parts furniture and equipment (2,356) (908) (1,262) Administrative benefits — 27,180 9,072 Other income 15,161 4,607 4,105 Ps. 621,973 Ps. 96,765 Ps. 496,742
Schedule of other operating expenses	2018 2017 2016 Administrative and operational support expenses Ps. 570,409 Ps. 562,739 Ps. 541,826 Technology and communications 385,841 373,394 266,898 Passenger services 70,337 59,261 45,439 Insurance 60,892 54,569 56,414 Rents of offices, maintenance warehouse and hangar (Note 14c) 36,483 30,544 33,517 Disposal of intangible, rotable spare parts, furniture and equipment — 11 436 Others 5,949 7,922 7,922 Ps. 1,129,911 Ps. 1,088,440 Ps. 952,452

Finance income and cost (Tables

Finance income and cost (Tables)	12 Months Ended
	Dec. 31, 2018
Finance income and cost
Schedule of finance income	2018 2017 2016 Interest on cash and equivalents Ps. 152,437 Ps. 105,151 Ps. 78,793 Interest on recovery of guarantee deposits 166 644 23,792 Others — — 6 Ps. 152,603 Ps. 105,795 Ps. 102,591
Schedule of finance cost	2018 2017 2016 Cost of letter credit notes Ps. 57,277 Ps. 42,294 Ps. 28,067 Interest on debts and borrowings* 56,916 37,565 1,245 Bank fees and others 6,141 5,279 5,804 Other finance costs — 1,219 — Ps. 120,334 Ps. 86,357 Ps. 35,116
Schedule of capitalized interest	2018 2017 2016 Interest on debts and borrowings Ps. 414,836 Ps. 230,954 Ps. 96,690 Capitalized interest (Note 12) (357,920) (193,389) (95,445) Net interest on debts and borrowing in the consolidated statements of operations Ps. 56,916 Ps. 37,565 Ps. 1,245

Components of other comprehen_2

Components of other comprehensive income (loss) (Tables)	12 Months Ended
	Dec. 31, 2018
Components of other comprehensive income (loss)
Schedule of components of other comprehensive income (loss)	2018 2017 2016 Derivative financial instruments: Reclassification of call options and forwards during the year to profit or loss (Note 4) Ps. (455,009) Ps. 52,097 Ps. 353,943 Extrinsic value of changes on jet fuel Asian call options 227,509 (81,182) 277,899 Extrinsic value of changes on jet fuel Zero cost collars (122,948) — — Gain (loss) of the matured foreign currency forward contracts 66,757 (13,380) — Gain (loss) of the not-yet matured interest rate swap contracts — 317 (7,148) Total Ps. (283,691) Ps. (42,148) Ps. 624,694

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and contingencies
Schedule of committed expenditures	Commitment Commitment expenditures expenditures in U.S. equivalent in dollars Mexican pesos (1) 2019 US$ 76,559 Ps. 1,506,903 2020 136,936 2,695,298 2021 164,856 3,244,844 2022 and thereafter 691,836 13,617,339 US$ 1,070,187 Ps. 21,064,384 (1) Using the exchange rate as of December 31, 2018 of Ps.19.6829.

Operating segments (Tables)

Operating segments (Tables)	12 Months Ended
	Dec. 31, 2018
Operating segments
Schedule of geographic segments	2018 2017 2016 Operating revenues: Domestic (Mexico) Ps. 18,493,476 Ps. 17,272,946 Ps. 15,694,044 International: United States of America and Central America * 8,811,674 7,515,240 7,777,516 Total operating revenues Ps. 27,305,150 Ps. 24,788,186 Ps. 23,471,560 *United States of America represents approximately 32%, 30% and 32% of total revenues from external customers in 2018, 2017 and 2016, respectively.

Description of the business a_4

Description of the business and summary of significant accounting policies - Relevant events (Details)	Feb. 16, 2018shares	Dec. 28, 2017aircraft	Nov. 10, 2016	Feb. 17, 2010	May 09, 2005
Description of the business and summary of significant accounting policies
Number of aircraft purchased | aircraft		80
Concesionaria
Description of the business and summary of significant accounting policies
Term of authorization to provide air transportation services				10 years	5 years
Volaris Costa Rica
Description of the business and summary of significant accounting policies
Term of authorization to provide air transportation services			5 years
Series B shares
Description of the business and summary of significant accounting policies
Conversion of equivalent number of shares | shares	45,968,598

Description of the business a_5

Description of the business and summary of significant accounting policies - Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Concesionaria
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Volaris Costa Rica
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Vuela, S.A.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Vuela El Salvador, S.A. de C.V.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%
Comercializadora Volaris, S.A. de C.V.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Servicios Earhart, S.A.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Servicios Corporativos
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Servicios Administrativos
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Loyalty Program
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%
Viajes Vuela
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Deutsche Bank Mxico, S.A., Trust 1710
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Deutsche Bank Mxico, S.A., Trust 1711
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Irrevocable Administrative Trust number F/307750
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Irrevocable Administrative Trust number F/745291
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%	100.00%
Irrevocable Administrative Trust number CIB/3081
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%

Description of the business a_6

Description of the business and summary of significant accounting policies - Revenue recognition and financial instruments (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Revenue recognition
Discounts, payment incentives, bonuses or other variable considerations		$ 0
Fare revenues	$ 939,285	18,487,858	$ 17,791,317	$ 17,790,130
Other passenger revenues	400,982	7,892,497	6,098,504	4,919,452
Passenger revenues	1,340,267	26,380,355	23,889,821	22,709,582
Other non-passenger services	35,430	697,357	727,392	590,355
Cargo	11,555	227,438	170,973	171,623
Operating revenues	1,387,252	27,305,150	24,788,186	23,471,560
Transactions from unearned transportation revenues
January 1,		2,293,309	2,228,051	1,957,254
Deferred		26,254,391	23,714,649	22,778,110
Recognized in revenue during the year		(26,109,184)	(23,649,391)	(22,507,313)
December 31,		2,438,516	2,293,309	2,228,051
Non-ticket revenues
Cargo	$ 11,555	227,438	170,973	171,623
Expected credit losses on accounts receivable		10,621	4,720	9,164
Domestic (Mexico)
Revenue recognition
Operating revenues		18,493,476	17,272,946	15,694,044
Domestic (Mexico) | At the flight time
Revenue recognition
Fare revenues		12,336,095	12,284,795	11,701,014
Other passenger revenues		5,182,572	4,087,664	3,238,826
Passenger revenues		17,518,667	16,372,459	14,939,840
Other non-passenger services		685,219	723,297	587,270
Cargo		221,324	165,907	166,934
Operating revenues		18,425,210	17,261,663	15,694,044
Non-ticket revenues
Cargo		221,324	165,907	166,934
Domestic (Mexico) | At the sale
Revenue recognition
Other passenger revenues		68,264	11,283
Passenger revenues		68,264	11,283
Operating revenues		68,264	11,283
International | At the flight time
Revenue recognition
Fare revenues		6,151,763	5,506,522	6,089,116
Other passenger revenues		2,598,375	1,992,696	1,680,626
Passenger revenues		8,750,138	7,499,218	7,769,742
Other non-passenger services		12,138	4,095	3,085
Cargo		6,114	5,066	4,689
Operating revenues		8,768,390	7,508,379	7,777,516
Non-ticket revenues
Cargo		6,114	5,066	$ 4,689
International | At the sale
Revenue recognition
Other passenger revenues		43,286	6,861
Passenger revenues		43,286	6,861
Operating revenues		$ 43,286	$ 6,861
Minimum
Revenue recognition
Term of trade receivables	1 day	1 day
Maximum
Revenue recognition
Term of trade receivables	2 days	2 days

Description of the business a_7

Description of the business and summary of significant accounting policies - Intangible assets (Details)	12 Months Ended
	Dec. 31, 2018
Software
Intangible assets
Useful life of intangible assets	5 years

Description of the business a_8

Description of the business and summary of significant accounting policies - Aircraft, rotable spare parts, furniture and equipment, net (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018agreement	Dec. 31, 2018engine	Dec. 31, 2018aircraft	Dec. 31, 2018	Dec. 31, 2018MXN ($)	Dec. 31, 2017agreement	Dec. 31, 2017engine	Dec. 31, 2017aircraft	Dec. 31, 2017	Dec. 31, 2017MXN ($)	Dec. 31, 2016agreement	Dec. 31, 2016aircraft	Dec. 31, 2016	Dec. 31, 2016MXN ($)
Aircraft, rotable spare parts, furniture and equipment, net
Maintenance deposits expensed as supplemental rent						$ 87,019					$ 103,648				$ 143,923
Number of aircraft added to fleet | aircraft				10					5				17
Maintenance adjustment payments expensed as contingent rent						212,582					162,108				201,434
Number of aircraft with lease term extended		2		2			3		3			2	2
Number of engine agreements for which lease term extended | engine			2					2
Maintenance deposits expensed to contingent rent prior to lease extensions						0					65,716				92,528
Amortization of lease incentives						84,637					88,224				74,748
Length of time before routine aircraft and engine maintenance is required	22 months
Additions						2,693,397					2,584,232				2,198,697
Depreciation						427,756					496,291				496,253
Capitalized borrowing costs						357,920					193,389				95,445
Rate used to determine amount of borrowing cost					4.41%					3.30%				2.88%
Aircraft parts and rotable spare parts
Aircraft, rotable spare parts, furniture and equipment, net
Additions						106,240					115,173				110,592
Depreciation						54,320					44,409				33,430
Aircraft spare engines
Aircraft, rotable spare parts, furniture and equipment, net
Additions						260,131					385				323,025
Depreciation						16,785					16,795				1,337
Standardization
Aircraft, rotable spare parts, furniture and equipment, net
Additions						10,803					15,833				21,953
Depreciation						13,729					18,543				23,728
Annual depreciation rate	Remaining contractual lease term
Computer equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions						5,316					1,845				740
Depreciation						7,215					3,809				2,549
Annual depreciation rate					25.00%
Communications equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions						1,050									129
Depreciation						892					796				831
Annual depreciation rate					10.00%
Office furniture and equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions						652					6,805				517
Depreciation						6,209					3,801				3,559
Annual depreciation rate					10.00%
Electric power equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions															1,467
Depreciation						1,132					1,294				1,946
Annual depreciation rate					10.00%
Workshop machinery and equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions						1,040					123				131
Depreciation						727					722				692
Annual depreciation rate					10.00%
Service carts on board
Aircraft, rotable spare parts, furniture and equipment, net
Additions															36
Depreciation						256					376				731
Annual depreciation rate					20.00%
Leasehold improvements to flight equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions						676,457					529,331				226,526
Depreciation						313,464					382,745				404,659
Annual depreciation rate	The shorter of: (i) remaining contractual lease term, or (ii) the next major maintenance event
Rotable spare parts, furniture and equipment assets
Aircraft, rotable spare parts, furniture and equipment, net
Impairment charges on rotable spare parts, furniture and equipment						$ 0					$ 0				$ 0
Minimum
Aircraft, rotable spare parts, furniture and equipment, net
Duration of routine aircraft and engine maintenance	7 days
Length of time before major aircraft and engine maintenance is required	5 years
Minimum | Aircraft parts and rotable spare parts
Aircraft, rotable spare parts, furniture and equipment, net
Annual depreciation rate					8.30%
Minimum | Aircraft spare engines
Aircraft, rotable spare parts, furniture and equipment, net
Annual depreciation rate					4.00%
Maximum
Aircraft, rotable spare parts, furniture and equipment, net
Duration of routine aircraft and engine maintenance	14 days
Duration of major aircraft and engine maintenance	42 days
Length of time before major aircraft and engine maintenance is required	6 years
Maximum | Aircraft parts and rotable spare parts
Aircraft, rotable spare parts, furniture and equipment, net
Annual depreciation rate					16.70%
Maximum | Aircraft spare engines
Aircraft, rotable spare parts, furniture and equipment, net
Annual depreciation rate					8.30%

Description of the business a_9

Description of the business and summary of significant accounting policies - Foreign currency exchange differences and liabilities and provisions (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018$ / $Q / $	Dec. 31, 2018$ / $₡ / $	Dec. 31, 2018USD ($)$ / $	Dec. 31, 2018MXN ($)$ / $	Dec. 31, 2017$ / $Q / $	Dec. 31, 2017$ / $₡ / $	Dec. 31, 2017MXN ($)$ / $	Dec. 31, 2016$ / $Q / $	Dec. 31, 2016$ / $₡ / $	Dec. 31, 2016MXN ($)$ / $	Apr. 25, 2019$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Description of the business and summary of significant accounting policies
Average exchange rate for year	7.5337	580.8534			7.3509	572.2000		7.4931	564.3332
Exchange rate as of end of the year	19.6829	19.6829	19.6829	19.6829	19.7354	19.7354	19.7354	20.6640	20.6640	20.6640	18.9578	7.7440	609.6100	7.3448	572.5600	7.5221	561.1000
Exchange differences on translation of foreign operations			$ 1,126	$ 22,156			$ (7,178)			$ (4,756)
Cost of return of aircraft to lessors expensed as supplemental rent				$ 659,106			$ 851,410			$ 933,730

Description of the business _10

Description of the business and summary of significant accounting policies - Employee benefits (Details)	Nov. 06, 2014	Apr. 30, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Share-based payments
Termination benefits provision				$ 0	$ 0	$ 0
Number of days' wages for each year of service provided as seniority premium benefits			12 days	12 days
Minimum years of service to receive seniority premium benefits			15 years	15 years
Salaries and benefits			$ 158,787,000	$ 3,125,393,000	2,823,647,000	2,419,537,000
Quarterly incentive bonuses
Share-based payments
Salaries and benefits				67,680,000	48,384,000	40,829,000
Short-term benefit plan for certain key personnel
Share-based payments
Salaries and benefits				50,000,000	0	53,738,000
Restricted Stock Units
Share-based payments
Salaries and benefits				19,980,000	13,508,000	7,816,000
SARs - cash settled
Share-based payments
Salaries and benefits						$ 31,743,000
Salaries and benefits				$ (186,000)	$ (8,999,000)
Vesting period	3 years		3 years	3 years	3 years	3 years
MIP I
Share-based payments
Exercise price				$ 5.31	$ 5.31	$ 5.31
MIP II
Share-based payments
Salaries and benefits						54,357,000
Salaries and benefits				$ (5,052,000)	(16,499,000)
Vesting period			5 years	5 years
BODIP
Share-based payments
Vesting period		4 years
Exercise price		$ 16.12		$ 16.12	26.29
Employee profit sharing
Share-based payments
Salaries and benefits				$ 14,106,000	$ 8,342,000	$ 9,967,000

Description of the business _11

Description of the business and summary of significant accounting policies - Operating segments (Details) - segment	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Description of the business and summary of significant accounting policies
Number of operating segments	1
Number of geographic segments	2	2	2

Description of the business _12

Description of the business and summary of significant accounting policies - Impact of new International Financial Reporting Standards (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)$ / shares	Dec. 31, 2018MXN ($)$ / shares	Dec. 31, 2017MXN ($)$ / shares	Dec. 31, 2016MXN ($)$ / shares	Dec. 31, 2018MXN ($)
Impact of adoption on the consolidated statements of financial position
Unearned transportation revenue	$ 123,890		$ 2,293,309	$ 2,228,051	$ 2,438,516
Retained earnings	216,730		4,948,376	5,853,092	4,265,876
Impact of adoption on the consolidated statements of operations
Fare revenues	939,285	$ 18,487,858	17,791,317	17,790,130
Other passenger revenues	400,982	7,892,497	6,098,504	4,919,452
Passenger revenues	1,340,267	26,380,355	23,889,821	22,709,582
Other non-passenger services	35,430	697,357	727,392	590,355
Cargo	11,555	227,438	170,973	171,623
Non- passenger revenues			898,365	761,978
Operating revenues	1,387,252	27,305,150	24,788,186	23,471,560
Operating expense			24,826,733	20,772,760
Operating income (loss)	(44,735)	(880,530)	(38,547)	2,698,800
Net (loss) income	$ (34,674)	$ (682,500)	$ (651,788)	$ 3,478,598
(Loss) Earnings per share basic: | (per share)	$ (0.034)	$ (0.674)	$ (0.644)	$ 3.438
Assets
Deferred income tax			$ 1,304,033	$ 978,683	2,029,811
Equity:
Retained earnings	$ 216,730		4,948,376	5,853,092	4,265,876
Impact on the statement of operations
Operating income	(44,735)	$ (880,530)	(38,547)	2,698,800
Finance cost	6,114	120,334	86,357	35,116
Foreign exchange (gain) loss	3,682	72,475	793,854	(2,169,505)
Income tax expense (benefit)	12,104	238,236	161,175	(1,457,182)
Net (income) loss	$ 34,674	682,500	651,788	(3,478,598)
Impact of IFRS 16 adoption
Impact of adoption on the consolidated statements of financial position
Retained earnings				6,497,366
Impact of adoption on the consolidated statements of operations
Operating income (loss)		(1,595,144)	(1,516,182)
Net (loss) income		(78,371)	1,101,595
Assets
Property, plant and equipment (Right-of-use-assets)			25,075,501	23,709,968	31,985,598
Deferred income tax			2,231,702	2,699,552	2,271,031
Prepaid expenses				(266,959)
Liabilities
Lease liabilities			32,436,015	32,639,927	$ 39,463,811
Equity:
Retained earnings				6,497,366
Impact on the statement of operations
Depreciation expense		4,123,513	3,522,738
Operating lease expense		(5,718,657)	(5,038,920)
Operating income		(1,595,144)	(1,516,182)
Finance cost		1,682,420	1,381,027
Foreign exchange (gain) loss		30,423	(1,434,290)
Income tax expense (benefit)		(39,328)	467,850
Net (income) loss		$ 78,371	(1,101,595)
As previously reported
Impact of adoption on the consolidated statements of financial position
Unearned transportation revenue			2,161,636	2,153,567
Retained earnings			5,080,049	5,927,576
Impact of adoption on the consolidated statements of operations
Fare revenues			17,791,317	17,790,130
Passenger revenues			17,791,317	17,790,130
Other non-passenger services			6,883,085	5,550,698
Cargo			170,973	171,623
Non- passenger revenues			7,054,058	5,722,321
Operating revenues			24,845,375	23,512,451
Operating expense			24,826,733	20,772,760
Operating income (loss)			18,642	2,739,691
Net (loss) income			$ (594,599)	$ 3,519,489
(Loss) Earnings per share basic: | $ / shares			$ (0.588)	$ 3.478
Equity:
Retained earnings			$ 5,080,049	$ 5,927,576
Impact on the statement of operations
Operating income			18,642	2,739,691
Net (income) loss			594,599	(3,519,489)
Adjustment
Impact of adoption on the consolidated statements of financial position
Unearned transportation revenue			131,673	74,484
Retained earnings			(131,673)	(74,484)
Impact of adoption on the consolidated statements of operations
Other passenger revenues			6,098,504	4,919,452
Passenger revenues			6,098,504	4,919,452
Other non-passenger services			(6,155,693)	(4,960,343)
Non- passenger revenues			(6,155,693)	(4,960,343)
Operating revenues			(57,189)	(40,891)
Operating income (loss)			(57,189)	(40,891)
Net (loss) income			(57,189)	(40,891)
Equity:
Retained earnings			(131,673)	(74,484)
Impact on the statement of operations
Operating income			(57,189)	(40,891)
Net (income) loss			$ 57,189	$ 40,891

Significant accounting judgme_2

Significant accounting judgments, estimates and assumptions (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Significant accounting judgments, estimates and assumptions
Tax loss carry-forwards used	$ 154,353	$ 16,378	$ 195,116

Financial instruments and ris_3

Financial instruments and risk management - Jet fuel price risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)gal$ / gal	Dec. 31, 2017MXN ($)gal$ / gal	Dec. 31, 2016MXN ($)gal$ / gal
Jet fuel price risk
Loss from derivatives financial instruments recognized in consolidated statements of operations | $		$ (455,009)	$ 52,097	$ 353,943
Jet fuel
Jet fuel price risk
Percentage of operating expenses	36.00%	36.00%	29.00%	28.00%
Jet fuel Asian call options
Jet fuel price risk
Notional volume (in gallons)		45,600	61,100,000
Projected term of hedged consumption	12 months	12 months	9 months
Fair value of derivative financial assets | $		$ 48,199	$ 497,403	$ 867,809
Cost of hedging recognized in other comprehensive income | $		134,096	163,836	218,038
Extrinsic value of options recycled to cost | $		$ (402,493)	$ 26,980	$ 305,166
Jet fuel Asian call options | Within one year
Jet fuel price risk
Notional volume (in gallons)		26,632,000	131,381,000	118,798,000
Strike price agreed rate | $ / gal		1.8400	1.7447	1.5145
Approximate percentage of hedge (of expected consumption value)		10.00%	55.00%	52.00%
Jet fuel Asian call options | Within six months
Jet fuel price risk
Notional volume (in gallons)		12,790,000	69,518,000	55,436,000
Strike price agreed rate | $ / gal		1.8400	1.6861	1.6245
Approximate percentage of hedge (of expected consumption value)		10.00%	60.00%	51.00%
Jet fuel Asian call options | Between six months and one year
Jet fuel price risk
Notional volume (in gallons)		13,842,000	61,863,000	63,362,000
Strike price agreed rate | $ / gal		1.8400	1.8106	1.4182
Approximate percentage of hedge (of expected consumption value)		10.00%	50.00%	53.00%
Jet fuel Asian call options | Between one year and two years
Jet fuel price risk
Notional volume (in gallons)				70,238,000
Strike price agreed rate | $ / gal				1.6392
Approximate percentage of hedge (of expected consumption value)				24.00%
Jet fuel Asian call options | Between one year and eighteen months
Jet fuel price risk
Notional volume (in gallons)				62,492,000
Strike price agreed rate | $ / gal				1.6508
Approximate percentage of hedge (of expected consumption value)				45.00%
Jet fuel Asian call options | Between eighteen months and twenty-one months
Jet fuel price risk
Notional volume (in gallons)				7,746,000
Strike price agreed rate | $ / gal				1.5450
Approximate percentage of hedge (of expected consumption value)				10.00%
Jet Fuel Asian Zero-Cost collar options
Jet fuel price risk
Loss from derivatives financial instruments recognized in consolidated statements of operations | $		$ (122,948)
Upward/downward movement in the spot price of the US Gulf Coast Jet 54	5.00%	5.00%
Effect of upward movement in spot price on accumulated other comprehensive income | $	$ 1,670
Effect of downward movement in spot price on accumulated other comprehensive income | $	$ (1,510)
Jet Fuel Asian Zero-Cost collar options | Within one year
Jet fuel price risk
Notional volume (in gallons)		18,963,000
Approximate percentage of hedge (of expected consumption value)		15.00%
Jet Fuel Asian Zero-Cost collar options | Within six months
Jet fuel price risk
Notional volume (in gallons)		18,963,000
Approximate percentage of hedge (of expected consumption value)		15.00%
All-in | Within one year
Jet fuel price risk
Approximate percentage of hedge (of expected consumption value)		18.00%
All-in | Within six months
Jet fuel price risk
Approximate percentage of hedge (of expected consumption value)		25.00%
All-in | Between six months and one year
Jet fuel price risk
Approximate percentage of hedge (of expected consumption value)		10.00%

Financial instruments and ris_4

Financial instruments and risk management - Foreign currency risk (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Foreign currency risk
Percentage of total collections denominated in U.S. dollars	38.00%	40.00%	38.00%
United States of America and Central America
Foreign currency risk
Percentage of revenues	32.00%	30.00%	33.00%

Financial instruments and ris_5

Financial instruments and risk management - Foreign exchange on and off-balance sheet exposure (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)$ / $	Dec. 31, 2017MXN ($)$ / $	Dec. 31, 2016MXN ($)contract	Apr. 25, 2019$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2017USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $	Dec. 31, 2016USD ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2015MXN ($)
Assets
Cash and cash equivalents							$ 297,870	$ 5,862,942			$ 353,143	$ 6,950,879					$ 7,071,251	$ 5,157,313
Other accounts receivable							25,834	508,479				478,467					427,403
Total assets							1,133,504	22,310,651				22,666,267					21,781,771
Liabilities
Financial debt								3,523,198				3,482,714					1,994,283	$ 1,591,019
Foreign suppliers							55,149	1,085,499				1,077,438					861,805
Derivative financial instruments								122,948									14,144
Total liabilities							667,532	13,138,971				$ 12,634,769					$ 11,062,179
Exchange rate	19.6829	19.7354		18.9578	7.7440	609.6100			7.3448	572.5600			20.6640	7.5221	561.1000
Aircraft and engine commitments							1,070,187	$ 21,064,384
Foreign currency forward contract
Liabilities
Unrealized gains relating to the foreign currency forward contracts is included in OCI	$ 14,241
Net loss on foreign currency forward contract	$ 52,516	$ 11,290	$ 0
Number of foreign currency forward contracts | contract			0
Foreign exchange and off-balance sheet exposure
Assets
Cash and cash equivalents							279,829				344,038					$ 297,565
Other accounts receivable							10,957				13,105					11,619
Aircraft maintenance deposits paid to lessors							329,983				352,142					343,787
Deposits for rental of flight equipment							32,166				25,343					30,025
Derivative financial instruments							3,172				25,204					41,996
Total assets							656,107				759,832					724,992
Liabilities
Financial debt							155,455				128,296					76,789
Foreign suppliers							51,012				53,729					56,109
Taxes and fees payable							14,823				10,304					6,874
Derivative financial instruments							6,246									684
Total liabilities							227,536				192,329					140,456
Net foreign currency position							428,571				567,503					584,536
Aircraft and engine operating lease payments							2,334,767				1,840,316					1,727,644
Aircraft and engine commitments							1,070,187				1,123,377					315,326
Total off-balance sheet transactions exposure							$ 3,404,954				$ 2,963,693					$ 2,042,970
Aircraft rental expense | Foreign currency forward contract
Liabilities
Percentage of expense hedged	20.00%	9.00%

Financial instruments and ris_6

Financial instruments and risk management - Interest rate risk (Details) $ in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)USD ($)
Interest rate risk
Derivative financial liabilities	$ 122,948		$ 14,144
Loss on cash flow hedges	455,009	$ (52,097)	$ (353,943)
Interest rate swap contracts
Interest rate risk
Notional amount (in USD)			70
Derivative financial liabilities	$ 0	0	$ 14,144
Loss on cash flow hedges		$ 13,827	$ 48,777

Financial instruments and ris_7

Financial instruments and risk management - Maturity analysis for financial liabilities (Details) - MXN ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	$ 3,629,782	$ 3,476,742	$ 2,002,325
Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	1,318,843	2,397,590	1,059,279
Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	2,310,939	1,079,152	943,046
Jet Fuel Asian Zero-Cost collar options
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	122,948
Jet Fuel Asian Zero-Cost collar options | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	122,948
Interest rate swap contracts
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments			14,144
Interest rate swap contracts | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments			14,144
Revolving line of credit
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	3,045,574	2,528,388	1,271,891
Revolving line of credit | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	734,635	1,449,236	328,845
Revolving line of credit | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	2,310,939	1,079,152	943,046
Short-term working capital facilities
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	461,260	948,354	716,290
Short-term working capital facilities | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	$ 461,260	$ 948,354	$ 716,290

Fair value measurements - Carry

Fair value measurements - Carrying amount and fair value (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair value measurements
Carrying amount of derivative financial assets	$ 62,440	$ 497,403	$ 867,809
Fair value of derivative financial assets	62,440	497,403	867,809
Net carrying amount	(3,567,342)	(2,979,339)	(1,134,516)
Net fair value	(3,576,058)	(2,984,338)	(1,134,780)
Transfers of assets from level 1 to level 2	0	0	0
Transfers of assets from level 2 to level 1	0	0	0
Transfers of liabilities from level 1 to level 2	0	0	0
Transfers of liabilities from level 2 to level 1	0	0	0
Financial debt
Fair value measurements
Carrying amount of financial liabilities	(3,506,834)	(3,476,742)	(1,988,181)
Fair value of financial liabilities	(3,515,550)	(3,481,741)	(1,988,445)
Interest-bearing loans and borrowings
Fair value measurements
Fair value of financial liabilities	(3,515,550)	(3,481,741)	(1,988,445)
Derivative financial instruments
Fair value measurements
Carrying amount of financial liabilities	(122,948)		(14,144)
Fair value of financial liabilities	(122,948)		(14,144)
Jet fuel Asian call options
Fair value measurements
Carrying amount of derivative financial assets	48,199	497,403	867,809
Fair value of derivative financial assets	48,199	497,403	867,809
Fair value of financial liabilities	(122,948)
Foreign currency forward contract
Fair value measurements
Carrying amount of derivative financial assets	14,241
Fair value of derivative financial assets	14,241
Interest rate swap contracts
Fair value measurements
Fair value of financial liabilities			$ (14,144)
Level 2
Fair value measurements
Net fair value	(3,576,058)	(2,984,338)
Level 2 | Interest-bearing loans and borrowings
Fair value measurements
Fair value of financial liabilities	(3,515,550)	(3,481,741)
Level 2 | Jet fuel Asian call options
Fair value measurements
Fair value of derivative financial assets	48,199	$ 497,403
Fair value of financial liabilities	(122,948)
Level 2 | Foreign currency forward contract
Fair value measurements
Fair value of derivative financial assets	$ 14,241

Fair value measurements - Loss

Fair value measurements - Loss gain from financial instruments (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)$ / $	Dec. 31, 2018MXN ($)$ / $	Dec. 31, 2017MXN ($)$ / $	Dec. 31, 2016MXN ($)$ / $	Apr. 25, 2019$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
(Loss) gain on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		$ (455,009)	$ 52,097	$ 353,943
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income	$ (14,413)	$ (283,691)	$ (42,148)	$ 624,694
Exchange rate	19.6829	19.6829	19.7354	20.6640	18.9578	7.7440	609.6100	7.3448	572.5600	7.5221	561.1000
Foreign currency forward contract
(Loss) gain on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		$ (52,516)	$ 11,290
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		14,241	(2,090)
Jet fuel Asian call options
(Loss) gain on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		(402,493)	26,980	$ 305,166
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		(174,984)	(54,202)	583,065
Jet fuel Zero cost collars
(Loss) gain on financial instruments
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		$ (122,948)
Interest rate swap contracts
(Loss) gain on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations			13,827	48,777
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income			$ 14,144	$ 41,629

Financial assets and liabilit_3

Financial assets and liabilities - Financial assets (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Financial assets
Total financial assets		$ 62,440	$ 497,403	$ 867,809
Current	$ 3,172	62,440	497,403	543,528
Non-current				324,281
Jet fuel Asian call options
Financial assets
Total financial assets		48,199	$ 497,403	$ 867,809
Foreign currency forward contract
Financial assets
Total financial assets		$ 14,241

Financial assets and liabilit_4

Financial assets and liabilities - Short-term and long-term debt (Details) $ in Thousands, $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2015MXN ($)
Short-term and long-term debt
Accrued interest		$ 5,972	$ 6,102		$ 16,364
Total financial debt		3,482,714	1,994,283		3,523,198	$ 1,591,019
Less: Short-term maturities	$ 61,590	2,403,562	1,051,237	$ 61,590	1,212,259	1,371,202
Long-term	$ 117,409	1,079,152	943,046	$ 117,409	2,310,939	$ 219,817
Within one year
Short-term and long-term debt
Total financial debt					1,212,259
Between one year and two years
Short-term and long-term debt
Total financial debt					1,508,757
Between two and three years
Short-term and long-term debt
Total financial debt					777,095
Between three and four years
Short-term and long-term debt
Total financial debt					25,087
Revolving line of credit
Short-term and long-term debt
Financial debt excluding accrued interest		$ 2,528,388	$ 1,271,891		3,045,574
Total financial debt					$ 3,059,804
Interest rate basis	three-month LIBOR plus a spread of 260 basis points	three-month LIBOR plus a spread of 260 basis points	three-month LIBOR plus a spread of 260 basis points
Spread on interest rate basis	2.60%	2.60%	2.60%	2.60%	2.60%
Revolving line of credit | Within one year
Short-term and long-term debt
Total financial debt					$ 748,865
Revolving line of credit | Between one year and two years
Short-term and long-term debt
Total financial debt					1,508,757
Revolving line of credit | Between two and three years
Short-term and long-term debt
Total financial debt					777,095
Revolving line of credit | Between three and four years
Short-term and long-term debt
Total financial debt					25,087
Short-term working capital facility with Citibanamex
Short-term and long-term debt
Financial debt excluding accrued interest		$ 948,354	$ 406,330		461,260
Total financial debt					$ 463,394
Interest rate basis				TIIE 28 days plus a 90 basis points
Spread on interest rate basis	0.90%	0.90%	0.90%	0.90%	0.90%
Short-term working capital facility with Citibanamex | Within one year
Short-term and long-term debt
Total financial debt					$ 463,394
Short-term working capital facility with Bank of America
Short-term and long-term debt
Financial debt excluding accrued interest			$ 309,960
Interest rate basis			one-month LIBOR plus 160 basis points
Spread on interest rate basis			1.60%

Financial assets and liabilit_5

Financial assets and liabilities - Aircraft financing (Details) - aircraft	Nov. 28, 2018	Nov. 30, 2016	Aug. 25, 2015	Nov. 27, 2014	Feb. 28, 2014	Aug. 01, 2013	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Aircraft financing
Number of aircraft incorporated to fleet							10	5	17
Revolving line of credit
Aircraft financing
Number of aircraft financed		22	8	4	2	8	1
Number of aircraft delivered									5	1
Number of aircraft incorporated to fleet								1
Number of aircraft with rescheduled delivery dates	26	22	7

Financial assets and liabilit_6

Financial assets and liabilities - Line of credit (Details) - MXN ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial assets and liabilities
Total available credit lines	$ 6,721,139	$ 7,368,346	$ 6,936,237
Available credit lines related to financial debt	4,063,947	4,616,861	5,048,477
Available credit lines related to letters of credit	2,657,192	2,751,485	1,887,760
Undrawn credit	$ 1,048,241	$ 1,739,775	$ 3,703,184

Financial assets and liabilit_7

Financial assets and liabilities - Changes in liabilities arising from financing activities (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Financial assets and liabilities
Current interest-bearing loans and borrowings, beginning of the year		$ 2,403,562	$ 1,051,237	$ 1,371,202
Non-current interest-bearing loans and borrowings, beginning of the year		1,079,152	943,046	219,817
Total liabilities from financing activities, beginning of the year		3,482,714	1,994,283	1,591,019
Net cash flows, current		(793,363)	419,350	(753,897)
Net cash flows, non-current		808,620	1,093,808	938,681
Net cash flows, total		15,257	1,513,158	184,784
Accrued Interest, Current		10,392	(130)	(1,239)
Accrued interest		10,392	(130)	(1,239)
Foreign exchange movement, current		71,380	25,924	121,269
Foreign exchange movement, non-current		(56,945)	(50,521)	98,450
Foreign exchange movement, total		14,435	(24,597)	219,719
Reclassification and other, current		(479,712)	907,181	313,902
Reclassification and other, non-current		480,112	(907,181)	(313,902)
Reclassification and other, total		400
Current interest-bearing loans and borrowings, end of the year	$ 61,590	1,212,259	2,403,562	1,051,237
Non-current interest-bearing loans and borrowings, end of the year	$ 117,409	2,310,939	1,079,152	943,046
Total liabilities from financing activities, end of the year		$ 3,523,198	$ 3,482,714	$ 1,994,283

Financial assets and liabilit_8

Financial assets and liabilities - Other financial liabilities (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2016MXN ($)
Other financial liabilities
Total financial liabilities		$ 122,948	$ 14,144
Current	$ 6,246	122,948	14,144
Zero cost collar options
Other financial liabilities
Total financial liabilities		$ 122,948
Interest rate swap contracts
Other financial liabilities
Total financial liabilities			$ 14,144

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2015MXN ($)
Cash and cash equivalents
Short-term investments		$ 4,796,554		$ 5,982,314	$ 4,433,559
Cash in banks		1,061,150		963,162	2,632,878
Cash on hand		5,238		5,403	4,814
Total cash and cash equivalents	$ 297,870	$ 5,862,942	$ 353,143	$ 6,950,879	$ 7,071,251	$ 5,157,313

Related parties - Analysis of b

Related parties - Analysis of balances due from/to related parties (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018MXN ($)
Disclosure of transactions between related parties
Due from related parties	$ 420			$ 8,266
Due to related parties		$ 40,931	$ 65,022	17,775
Frontier
Disclosure of transactions between related parties
Due from related parties				8,266
Due to related parties				2,751
Term	30 days	30 days	30 days
One Link, S.A. de C.V.
Disclosure of transactions between related parties
Due to related parties		$ 24,980	$ 33,775
Term	30 days	30 days	30 days
Aeromantenimiento, S.A.
Disclosure of transactions between related parties
Due to related parties		$ 15,951	$ 30,627	15,024
Term	30 days	30 days	30 days
SearchForce, Inc.
Disclosure of transactions between related parties
Due to related parties		$ 0	$ 620	$ 0
Term	30 days	30 days	30 days

Related parties - Transactions

Related parties - Transactions with related parties (Details) - MXN ($) $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Disclosure of transactions between related parties
Guarantees provided	$ 0
guarantees received	0
Provision for expected credit losses				$ 0
Frontier
Disclosure of transactions between related parties
Code-share	8,358
Aeromantenimiento, S.A.
Disclosure of transactions between related parties
Aircraft and engine maintenance	341,726	$ 249,266	$ 304,399
Technical support	4,796	8,088	8,105
One Link, S.A. de C.V.
Disclosure of transactions between related parties
Call center fees and other fees	$ 4,800	$ 202,689	$ 173,197

Related parties - Other informa

Related parties - Other information (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018MXN ($)
Disclosure of transactions between related parties
Balances due under the agreement			$ 40,931	$ 65,022	$ 17,775
Due from related parties	$ 420				8,266
Aggregate compensation of short and long-term benefits	$ 158,787	$ 3,125,393	2,823,647	2,419,537
(Benefit) arising from cash-settled share-based payments transactions		(5,238)	(25,498)
Expense arising from cash-settled share-based payments transactions				86,100
Servprot S.A. de C.V.
Disclosure of transactions between related parties
Security services expenses		$ 2,804	1,838	1,733
Aeromantenimiento, S.A.
Disclosure of transactions between related parties
Agreement term	5 years	5 years
Balances due under the agreement			15,951	30,627	15,024
Aircraft, engine maintenance and technical support		$ 346,522	251,731	308,731
Human Capital International
Disclosure of transactions between related parties
Professional services expenses		324	816	3,127
One Link, S.A. de C.V.
Disclosure of transactions between related parties
Balances due under the agreement			24,980	33,775
Expenses under the agreement			200,035	168,337
SearchForce, Inc.
Disclosure of transactions between related parties
Balances due under the agreement			0	620	0
Expenses under the agreement		0	1,946	3,446
Mijares, Angoitia, Corts y Fuentes
Disclosure of transactions between related parties
Balances due under the agreement					0
Expenses under the agreement		1,672
Frontier
Disclosure of transactions between related parties
Balances due under the agreement					2,751
Due from related parties					8,266
Revenue under this agreement		8,358
Directors and officers
Disclosure of transactions between related parties
Share-based payments transactions		19,980	13,508	7,816
(Benefit) arising from cash-settled share-based payments transactions		(5,238)	(25,498)
Expense arising from cash-settled share-based payments transactions				86,100
Provision for cash bonuses			0	53,738	$ 50,000
Chairman and independent members of the board of directors
Disclosure of transactions between related parties
Aggregate compensation of short and long-term benefits		7,178	8,993	7,751
Rest of the directors
Disclosure of transactions between related parties
Aggregate compensation of short and long-term benefits		5,217	7,834	7,308
Senior managers
Disclosure of transactions between related parties
Aggregate compensation of short and long-term benefits		$ 180,001	$ 134,370	$ 160,762

Other accounts receivable, ne_2

Other accounts receivable, net (Details) - MXN ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other accounts receivable, net
Credit cards	$ 96,646	$ 191,322	$ 253,374
Benefits from suppliers	68,946
Other accounts receivable	101,487	117,582	26,236
Other points of sales	71,054	54,719	23,867
Affinity credit card	55,172	40,517	8,950
Cargo clients	41,408	34,655	29,901
Travel agencies and insurance commissions	39,806	27,925	20,477
Marketing services receivable	7,999	13,435	11,070
Airport services	9,991	5,898	9,479
Employees	27,274	8,878	7,551
Insurance claims		1,345	55,815
Other current accounts receivable, gross	519,783	496,276	446,720
Allowance for credit losses	(11,304)	(17,809)	(19,317)	$ (24,612)
Other accounts receivable, net	$ 508,479	$ 478,467	$ 427,403

Other accounts receivable, ne_3

Other accounts receivable, net - Aging of accounts receivable (Details) - MXN ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable aging
Impaired accounts receivable	$ 11,304	$ 17,809	$ 19,317	$ 24,612
Not impaired accounts receivable	508,479	478,467	427,403
Total accounts receivable	519,783	496,276	446,720
0-30 Days
Accounts receivable aging
Impaired accounts receivable	8,725	16,962	15,723
Not impaired accounts receivable	388,644	415,847	398,721
Total accounts receivable	397,369	432,809	414,444
31-60 Days
Accounts receivable aging
Not impaired accounts receivable	69,648	38,705	11,231
Total accounts receivable	69,648	38,705	11,231
61-90 Days
Accounts receivable aging
Not impaired accounts receivable	27,138	17,918	14,492
Total accounts receivable	27,138	17,918	14,492
91-120 Days
Accounts receivable aging
Impaired accounts receivable	2,579	847	3,594
Not impaired accounts receivable	23,049	5,997	2,959
Total accounts receivable	$ 25,628	$ 6,844	$ 6,553

Other accounts receivable, ne_4

Other accounts receivable, net - Movement in the allowance for doubtful accounts (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other accounts receivable, net
Balance as of beginning of the year	$ (17,809)	$ (19,317)	$ (24,612)
Write-offs	17,126	6,228	14,459
Increase in allowance	(10,621)	(4,720)	(9,164)
Balance as of end of the year	$ (11,304)	$ (17,809)	$ (19,317)

Inventories (Details)

Inventories (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)
Inventories
Spare parts and accessories of flight equipment		$ 285,185	$ 235,330		$ 289,737
Miscellaneous supplies		9,665	8,554		7,534
Total		294,850	243,884	$ 15,103	$ 297,271
Consumption of inventories included in maintenance expense	$ 290,206	$ 242,265	$ 186,719

Prepaid expenses and other cu_3

Prepaid expenses and other current assets (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Prepaid expenses and other current assets
Advances to suppliers		$ 273,251	$ 346,263	$ 705,105
Prepaid aircraft rent		274,254	215,784	668,306
Prepaid insurance		76,896	68,712	47,663
Other prepaid expenses		22,682	65,642	33,555
Sales commission to travel agencies		59,620	54,501	73,413
Advances for constructions of aircraft and engines			13,764	31,437
Loss on sale and leaseback transactions to be amortized		3,047	3,047	3,047
Total	$ 36,059	$ 709,750	$ 767,713	$ 1,562,526

Guarantee deposits (Details)

Guarantee deposits (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Current assets:
Aircraft maintenance deposits paid to lessors		$ 729,899	$ 1,317,663	$ 1,145,913
Deposits for rental of flight equipment		1,220	17,178	14,155
Other guarantee deposits		59,516	18,052	7,141
Total	$ 40,169	790,635	1,352,893	1,167,209
Non-current assets:
Aircraft maintenance deposits paid to lessors		5,765,122	5,631,304	5,951,831
Deposits for rental of flight equipment		531,261	441,110	589,804
Other guarantee deposits		41,113	25,838	18,243
Total	$ 321,980	6,337,496	6,098,252	6,559,878
Total guarantee deposits		$ 7,128,131	$ 7,451,145	$ 7,727,087

Rotable spare parts, furnitur_3

Rotable spare parts, furniture and equipment, net - Net carrying value (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2015MXN ($)
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		$ 4,375,697	$ 2,525,008	$ 293,772	$ 5,782,282	$ 2,549,650
Capitalized borrowing costs	$ 357,920	193,389	95,445
Disposals of capitalized borrowing costs	$ 242,678	110,274	84,936
Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		6,655,478	4,309,387		8,487,429
Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(2,279,781)	(1,784,379)		(2,705,147)
Leasehold improvements to flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		613,098	323,024		1,138,114	501,157
Leasehold improvements to flight equipment | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		2,382,687	1,709,868		3,221,167
Leasehold improvements to flight equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(1,769,589)	(1,386,844)		(2,083,053)
Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		2,783,303	1,206,330		3,672,090	1,583,835
Pre-delivery payments | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		2,783,303	1,206,330		3,672,090
Aircraft parts and rotable spare parts
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		325,644	255,810		375,829	179,947
Aircraft parts and rotable spare parts | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		506,735	393,522		609,232
Aircraft parts and rotable spare parts | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(181,091)	(137,712)		(233,403)
Aircraft spare engines
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		305,278	321,688		288,493
Aircraft spare engines | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		323,410	323,025		323,410
Aircraft spare engines | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(18,132)	(1,337)		(34,917)
Construction and improvements in process
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		193,607	255,374		142,738	140,926
Construction and improvements in process | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		193,607	255,374		142,738
Standardization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		79,401	82,111		76,475	83,886
Standardization | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		192,808	176,975		203,611
Standardization | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(113,407)	(94,864)		(127,136)
Constructions and improvements
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		25,168	35,013		15,235	18,202
Constructions and improvements | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		131,503	120,886		132,446
Constructions and improvements | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(106,335)	(85,873)		(117,211)
Computer equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		9,323	7,200		16,547	4,195
Computer equipment | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		30,113	24,172		44,563
Computer equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(20,790)	(16,972)		(28,016)
Workshop tools
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		2,271	4,585		3,369	4,815
Workshop tools | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		20,500	20,500		23,454
Workshop tools | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(18,229)	(15,915)		(20,085)
Electric power equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		6,254	6,928		5,122	9,033
Electric power equipment | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		15,439	14,818		15,438
Electric power equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(9,185)	(7,890)		(10,316)
Communications equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		4,727	3,555		4,911	3,764
Communications equipment | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		11,229	9,261		12,305
Communications equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(6,502)	(5,706)		(7,394)
Workshop machinery and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		4,060	3,618		4,481	4,179
Workshop machinery and equipment | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		8,405	7,240		9,530
Workshop machinery and equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(4,345)	(3,622)		(5,049)
Motorized transport equipment platform
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		886	1,357		446	1,326
Motorized transport equipment platform | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		5,587	5,703		5,496
Motorized transport equipment platform | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(4,701)	(4,346)		(5,050)
Service carts on board
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		382	758		126	1,453
Service carts on board | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		5,403	5,403		5,403
Service carts on board | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		(5,021)	(4,645)		(5,277)
Office furniture and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		22,295	17,657		38,306	$ 12,932
Office furniture and equipment | Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		44,749	36,310		66,546
Office furniture and equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net		$ (22,454)	$ (18,653)		$ (28,240)

Rotable spare parts, furnitur_4

Rotable spare parts, furniture and equipment, net - Reconciliation of changes (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		$ 4,375,697	$ 2,525,008	$ 2,549,650
Additions		2,693,397	2,584,232	2,198,697
Disposals and transfers		(974,055)	(319,671)	(1,738,309)
Borrowing costs, net		115,242	83,115	10,507
Other movements		(243)	(696)	716
Depreciation		(427,756)	(496,291)	(496,253)
Balance at end of the year	$ 293,772	5,782,282	4,375,697	2,525,008
Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		6,655,478	4,309,387
Balance at end of the year		8,487,429	6,655,478	4,309,387
Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(2,279,781)	(1,784,379)
Balance at end of the year		(2,705,147)	(2,279,781)	(1,784,379)
Aircraft parts and rotable spare parts
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		325,644	255,810	179,947
Additions		106,240	115,173	110,592
Disposals and transfers		(1,735)	(930)	(1,299)
Depreciation		(54,320)	(44,409)	(33,430)
Balance at end of the year		375,829	325,644	255,810
Aircraft parts and rotable spare parts | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		506,735	393,522
Balance at end of the year		609,232	506,735	393,522
Aircraft parts and rotable spare parts | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(181,091)	(137,712)
Balance at end of the year		(233,403)	(181,091)	(137,712)
Aircraft spare engines
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		305,278	321,688
Additions		260,131	385	323,025
Disposals and transfers		(260,131)
Depreciation		(16,785)	(16,795)	(1,337)
Balance at end of the year		288,493	305,278	321,688
Aircraft spare engines | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		323,410	323,025
Balance at end of the year		323,410	323,410	323,025
Aircraft spare engines | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(18,132)	(1,337)
Balance at end of the year		(34,917)	(18,132)	(1,337)
Constructions and improvements
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		25,168	35,013	18,202
Additions		689		2,218
Other movements		67	10,371	32,441
Depreciation		(10,689)	(20,216)	(17,848)
Balance at end of the year		15,235	25,168	35,013
Constructions and improvements | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		131,503	120,886
Balance at end of the year		132,446	131,503	120,886
Constructions and improvements | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(106,335)	(85,873)
Balance at end of the year		(117,211)	(106,335)	(85,873)
Standardization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		79,401	82,111	83,886
Additions		10,803	15,833	21,953
Depreciation		(13,729)	(18,543)	(23,728)
Balance at end of the year		76,475	79,401	82,111
Standardization | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		192,808	176,975
Balance at end of the year		203,611	192,808	176,975
Standardization | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(113,407)	(94,864)
Balance at end of the year		(127,136)	(113,407)	(94,864)
Computer equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		9,323	7,200	4,195
Additions		5,316	1,845	740
Other movements		9,123	4,087	4,814
Depreciation		(7,215)	(3,809)	(2,549)
Balance at end of the year		16,547	9,323	7,200
Computer equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		30,113	24,172
Balance at end of the year		44,563	30,113	24,172
Computer equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(20,790)	(16,972)
Balance at end of the year		(28,016)	(20,790)	(16,972)
Office furniture and equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		22,295	17,657	12,932
Additions		652	6,805	517
Disposals and transfers			(15)	(110)
Other movements		21,568	1,649	7,877
Depreciation		(6,209)	(3,801)	(3,559)
Balance at end of the year		38,306	22,295	17,657
Office furniture and equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		44,749	36,310
Balance at end of the year		66,546	44,749	36,310
Office furniture and equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(22,454)	(18,653)
Balance at end of the year		(28,240)	(22,454)	(18,653)
Electric power equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		6,254	6,928	9,033
Additions				1,467
Disposals and transfers				(1,626)
Other movements			620
Depreciation		(1,132)	(1,294)	(1,946)
Balance at end of the year		5,122	6,254	6,928
Electric power equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		15,439	14,818
Balance at end of the year		15,438	15,439	14,818
Electric power equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(9,185)	(7,890)
Balance at end of the year		(10,316)	(9,185)	(7,890)
Workshop tools
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		2,271	4,585	4,815
Additions		2,673		4,217
Other movements		281		25
Depreciation		(1,856)	(2,314)	(4,472)
Balance at end of the year		3,369	2,271	4,585
Workshop tools | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		20,500	20,500
Balance at end of the year		23,454	20,500	20,500
Workshop tools | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(18,229)	(15,915)
Balance at end of the year		(20,085)	(18,229)	(15,915)
Motorized transport equipment platform
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		886	1,357	1,326
Additions				505
Disposals and transfers				(49)
Other movements		42		46
Depreciation		(482)	(471)	(471)
Balance at end of the year		446	886	1,357
Motorized transport equipment platform | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		5,587	5,703
Balance at end of the year		5,496	5,587	5,703
Motorized transport equipment platform | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(4,701)	(4,346)
Balance at end of the year		(5,050)	(4,701)	(4,346)
Communications equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		4,727	3,555	3,764
Additions		1,050		129
Other movements		26	1,968	493
Depreciation		(892)	(796)	(831)
Balance at end of the year		4,911	4,727	3,555
Communications equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		11,229	9,261
Balance at end of the year		12,305	11,229	9,261
Communications equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(6,502)	(5,706)
Balance at end of the year		(7,394)	(6,502)	(5,706)
Workshop machinery and equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		4,060	3,618	4,179
Additions		1,040	123	131
Disposals and transfers		(2)
Other movements		110	1,041
Depreciation		(727)	(722)	(692)
Balance at end of the year		4,481	4,060	3,618
Workshop machinery and equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		8,405	7,240
Balance at end of the year		9,530	8,405	7,240
Workshop machinery and equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(4,345)	(3,622)
Balance at end of the year		(5,049)	(4,345)	(3,622)
Service carts on board
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		382	758	1,453
Additions				36
Depreciation		(256)	(376)	(731)
Balance at end of the year		126	382	758
Service carts on board | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		5,403	5,403
Balance at end of the year		5,403	5,403	5,403
Service carts on board | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(5,021)	(4,645)
Balance at end of the year		(5,277)	(5,021)	(4,645)
Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		2,783,303	1,206,330	1,583,835
Additions		1,485,643	1,707,805	1,345,081
Disposals and transfers		(712,098)	(213,947)	(1,733,093)
Borrowing costs, net		115,242	83,115	10,507
Balance at end of the year		3,672,090	2,783,303	1,206,330
Pre-delivery payments | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		2,783,303	1,206,330
Balance at end of the year		3,672,090	2,783,303	1,206,330
Construction and improvements in process
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		193,607	255,374	140,926
Additions		142,703	206,932	161,560
Disposals and transfers		(89)	(3,555)	(2,132)
Other movements		(193,483)	(265,144)	(44,980)
Balance at end of the year		142,738	193,607	255,374
Construction and improvements in process | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		193,607	255,374
Balance at end of the year		142,738	193,607	255,374
Leasehold improvements to flight equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		613,098	323,024	501,157
Additions		676,457	529,331	226,526
Disposals and transfers			(101,224)
Other movements		162,023	244,712
Depreciation		(313,464)	(382,745)	(404,659)
Balance at end of the year		1,138,114	613,098	323,024
Leasehold improvements to flight equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		2,382,687	1,709,868
Balance at end of the year		3,221,167	2,382,687	1,709,868
Leasehold improvements to flight equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(1,769,589)	(1,386,844)
Balance at end of the year		$ (2,083,053)	$ (1,769,589)	$ (1,386,844)

Rotable spare parts, furnitur_5

Rotable spare parts, furniture and equipment, net - Additional Information (Details) $ in Thousands, $ in Thousands	Dec. 28, 2017aircraft	Aug. 16, 2013engine	Aug. 27, 2012USD ($)	Aug. 27, 2012MXN ($)	Dec. 31, 2018MXN ($)aircraft	Nov. 30, 2018aircraft	Dec. 31, 2017USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016USD ($)	Dec. 31, 2016MXN ($)	Nov. 30, 2015engine	Dec. 31, 2016MXN ($)itemengine	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)aircraft	Dec. 31, 2017USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016USD ($)engine	Dec. 31, 2016MXN ($)engine	Dec. 31, 2011MXN ($)aircraft
Rotable spare parts, furniture and equipment, net
Depreciation expense | $														$ 427,756		$ 496,291		$ 496,253
Number of aircraft purchased	80
Number of spare engines purchased | engine											3	2					2	2
Number of aircraft engines to be provided maintenance services | engine											16
Credit notes received							$ 3,060	$ 58,530
Accumulated amortization of credit notes | $					$ 4,878			1,219						4,878		1,219
Number of aircraft to be delivered						26
Amounts paid for aircraft and spare engines													$ 139,368	$ 2,743,155		2,521,752		$ 2,198,697
Total number of aircraft to be delivered					106									106
Gain (loss) on sale and leaseback | $														$ 609,168		65,886		484,827	$ (30,706)
Current portion of loss on sale and leaseback transactions | $					$ 3,047			3,047		$ 3,047		$ 3,047		3,047		3,047		3,047
Non-current portion of loss on sale and leaseback transactions | $					$ 8,366			11,413		14,460		14,460		$ 8,366		11,413		14,460
Term of aircraft delivery agreement													9 years	9 years
Within one year
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					3									3
Between two and three years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					8									8
Between three and four years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					13									13
Between four and five years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					13									13
Between five and six years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					16									16
Between six and seven years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					13									13
Between seven and eight years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					15									15
Between eight and nine years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered					25									25
Lufthansa Technik AG
Rotable spare parts, furniture and equipment, net
Credit notes received			$ 3,500	$ 46,461
Accumulated amortization of credit notes | $					$ 0			$ 6,580		9,292		9,292		$ 0		6,580		9,292
Term of total support agreement			5 years	5 years
Lufthansa Technik AG - December 2016 Agreement
Rotable spare parts, furniture and equipment, net
Credit notes received									$ 1,500	$ 28,110
Accumulated amortization of credit notes | $					$ 7,191									7,191
Term of total support agreement									66 months	66 months
A320 model
Rotable spare parts, furniture and equipment, net
Number of aircraft purchased					80														44
A320CEO model
Rotable spare parts, furniture and equipment, net
Number of aircraft purchased																			14
Number of engines purchased | engine		14
Number of spare engines purchased | engine		1
A320NEO model
Rotable spare parts, furniture and equipment, net
Number of aircraft purchased					46														30
Number of engines purchased | engine		30
Number of spare engines purchased | engine		6									2
Number of aircraft engines to be provided maintenance services | engine											10
A321NEO model
Rotable spare parts, furniture and equipment, net
Number of aircraft purchased					34
Number of spare engines purchased | engine											1
Number of aircraft engines to be provided maintenance services | engine											6
Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Amounts paid for aircraft and spare engines													$ 77,100	1,485,643	$ 90,000	1,707,805	$ 82,700	1,345,081
Aircraft spare engines
Rotable spare parts, furniture and equipment, net
Depreciation expense | $														$ 16,785		$ 16,795		$ 1,337
Amounts paid for aircraft and spare engines | $												$ 323,025
Number of major components | item												2
Estimated useful lives (in years)												25 years
Limited life parts
Rotable spare parts, furniture and equipment, net
Estimated useful lives (in years)												12 years

Intangible assets, net (Details

Intangible assets, net (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Composition and movement of intangible assets
Beginning balance		$ 190,420	$ 114,041	$ 94,649
Additions		71,007	130,908	60,792
Disposals		(9,368)	(1,976)	(1,277)
Amortization		(72,885)	(52,396)	(40,290)
Exchange differences		(50)	(157)	167
Ending balance	$ 9,100	179,124	190,420	114,041
Software
Composition and movement of intangible assets
Beginning balance		190,420	114,041
Ending balance		179,124	190,420	114,041
Amortization expense		72,885	52,396	40,290
Software | Gross value
Composition and movement of intangible assets
Beginning balance		441,803	313,028
Ending balance		503,467	441,803	313,028
Software | Accumulated depreciation / amortization
Composition and movement of intangible assets
Beginning balance		(251,383)	(198,987)
Ending balance		$ (324,343)	$ (251,383)	$ (198,987)
Software | Minimum
Composition and movement of intangible assets
Estimated useful lives (in years)	1 year	1 year
Software | Maximum
Composition and movement of intangible assets
Estimated useful lives (in years)	4 years	4 years

Operating leases (Details)

Operating leases (Details)	1 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2015engine	Dec. 31, 2016engineaircraft	Dec. 31, 2018agreementengineaircraft	Dec. 31, 2018engineaircraft	Dec. 31, 2018engineaircraft	Dec. 31, 2017agreementengineaircraft	Dec. 31, 2017engineaircraft	Dec. 31, 2017engineaircraft	Dec. 31, 2016itemengineaircraft	Dec. 31, 2016agreementengineaircraft	Dec. 31, 2016engineaircraft	Dec. 31, 2016engineaircraft
Operating leases
Number of aircraft leased		69	77	77	77	71	71	71	69	69	69	69
Number of spare engines leased | engine		11	10	10	10	8	8	8	11	11	11	11
Number of aircraft incorporated to fleet					10			5				17
Number of aircraft returned to respective lessors					4			3				4
Number of aircraft with lease term extended			2		2	3		3		2		2
Number of aircraft spare engines with lease term extended					2		2
Number of aircraft spare engines to be leased | item									5
Number of spare engines purchased | engine	3	2									2
Airbus purchase agreement
Operating leases
Number of aircraft incorporated to fleet					3			1				8
Lessor's aircraft order book
Operating leases
Number of aircraft incorporated to fleet					7			4				9
Pratt and Whitney purchase agreement (FMP)
Operating leases
Number of NEO spare engines incorporated to fleet | engine				2
A319 Model 132
Operating leases
Number of aircraft leased		6	4	4	4	6	6	6	6	6	6	6
A319 Model 133
Operating leases
Number of aircraft leased		9	4	4	4	6	6	6	9	9	9	9
A320 Model 233
Operating leases
Number of aircraft leased		39	39	39	39	39	39	39	39	39	39	39
A320 Model 232
Operating leases
Number of aircraft leased		4	4	4	4	4	4	4	4	4	4	4
A320NEO Model 271N
Operating leases
Number of aircraft leased		1	12	12	12	6	6	6	1	1	1	1
A321 Model 231
Operating leases
Number of aircraft leased		10	10	10	10	10	10	10	10	10	10	10
A321NEO Model 271N
Operating leases
Number of aircraft leased			4	4	4
V2500 Model V2527M-A5
Operating leases
Number of spare engines leased | engine		3	3	3	3	3	3	3	3	3	3	3
V2500 Model V2527E-A5
Operating leases
Number of spare engines leased | engine		4	3	3	3	3	3	3	4	4	4	4
V2500 Model V2527-A5
Operating leases
Number of spare engines leased | engine		4	2	2	2	2	2	2	4	4	4	4
PW1100 Model PW1127G-JM
Operating leases
Number of spare engines leased | engine			2	2	2

Operating leases - Future minim

Operating leases - Future minimum rent payments (Details) $ in Thousands, $ in Thousands

Apr. 25, 2019$ / $

Dec. 31, 2018$ / $

Dec. 31, 2018Q / $

Dec. 31, 2018₡ / $

Dec. 31, 2018USD ($)

Dec. 31, 2018MXN ($)

Dec. 31, 2017$ / $

Dec. 31, 2017Q / $

Dec. 31, 2017₡ / $

Dec. 31, 2016$ / $

Dec. 31, 2016Q / $

Dec. 31, 2016₡ / $

Disclosure of maturity analysis of operating lease payments [line items]

Exchange rate

18.9578

19.6829

7.7440

609.6100

19.7354

7.3448

572.5600

20.6640

7.5221

561.1000

Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

$ 2,297,971

$ 45,230,733

Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

36,796

724,252

Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

24,900

490,105

Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

292,386

Within one year | Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

301,632

5,936,992

Within one year | Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

7,314

143,961

Within one year | Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

9,754

191,989

Within one year | Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

131,166

Between one year and two years | Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

296,205

5,830,173

Between one year and two years | Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

6,694

131,757

Between one year and two years | Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

6,017

118,428

Between one year and two years | Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

88,237

Between two and three years | Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

288,462

5,677,769

Between two and three years | Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

6,537

128,667

Between two and three years | Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

3,111

61,243

Between two and three years | Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

16,114

Between three and four years | Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

275,451

5,421,674

Between three and four years | Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

6,064

119,357

Between three and four years | Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

1,763

34,691

Between three and four years | Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

13,302

Between four and five years | Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

238,970

4,703,623

Between four and five years | Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

5,066

99,714

Between four and five years | Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

721

14,201

Between four and five years | Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

10,108

Later than five years | Aircraft

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

897,251

17,660,502

Later than five years | Aircraft spare engines

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

5,121

100,796

Later than five years | Land and buildings | Denominated in U.S. dollars

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

$ 3,534

69,553

Later than five years | Land and buildings | Denominated in Mexican pesos

Disclosure of maturity analysis of operating lease payments [line items]

Future minimum payments

$ 33,459

Operating leases - Rental expen

Operating leases - Rental expense and sale and leaseback transactions (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2011MXN ($)
Operating leases
Aircraft and engine	$ 320,833	$ 6,314,930	$ 6,072,502	$ 5,590,058
Airports facilities		56,288	44,251	40,591
Offices, maintenance warehouse and hangar		36,483	30,544	33,517
Total rental expenses on real estate		92,771	74,795	74,108
Total cost of operating leases		6,407,701	6,147,297	5,664,166
Gain on sale and leaseback transactions of aircraft and spare engines		609,168	65,886	484,827	$ (30,706)
Deferred loss on sale and leaseback transactions of aircraft and spare engines					$ 30,706
Loss on sale and leaseback transactions to be amortized		3,047	3,047	3,047
Non-current portion of loss on sale and leaseback transactions		8,366	11,413	14,460
Amortized portion of loss on sale and leaseback transactions		$ 3,047	$ 3,047	$ 3,047

Accrued liabilities - Current (

Accrued liabilities - Current (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Accrued liabilities
Fuel and traffic accrued expenses		$ 1,315,363	$ 1,106,913	$ 922,607
Maintenance and aircraft parts accrued expenses		79,280	194,366	130,897
Sales, marketing and distribution accrued expenses		283,538	143,758	102,880
Maintenance deposits		141,371	132,519	179,288
Salaries and benefits		187,072	114,781	170,994
Accrued administrative expenses		67,306	90,459	80,981
Aircraft and engine lease extension benefit		50,796	83,047	85,124
Deferred revenue from VClub membership		59,557	76,261	32,771
Information and communication accrued expenses		45,008	44,638	32,950
Supplier services agreement		10,634	10,634	6,333
Depositary services benefit			1,473	2,068
Advances from travel agencies		482	650	1,536
Others		77,985	51,474	37,010
Total accrued liabilities	$ 117,787	$ 2,318,392	$ 2,050,973	$ 1,785,439

Accrued liabilities - Long-term

Accrued liabilities - Long-term (Details) $ in Thousands, $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Accrued liabilities
Aircraft and engine lease extension benefit		$ 61,730	$ 107,400	$ 127,831
Supplier services agreement		66,539	77,174	4,350
Depositary services benefit				1,473
Other		8,964	15,274	36,154
Total long-term accrued liabilities	$ 6,972	$ 137,233	$ 199,848	$ 169,808

Accrued liabilities - Other lia

Accrued liabilities - Other liabilities (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Analysis of accrued liabilities
Balance at beginning of the year	$ 497,446	$ 420,755	$ 159,499
Increase for the year	788,720	946,324	1,035,724
Payments	840,508	869,633	774,468
Balance at end of the year	445,658	497,446	420,755
Aircraft lease return obligation
Analysis of accrued liabilities
Balance at beginning of the year	488,383	410,060	149,326
Increase for the year	774,614	937,982	1,025,757
Payments	832,323	859,659	765,023
Balance at end of the year	430,674	488,383	410,060
Employee profit sharing
Analysis of accrued liabilities
Balance at beginning of the year	9,063	10,695	10,173
Increase for the year	14,106	8,342	9,967
Payments	8,185	9,974	9,445
Balance at end of the year	$ 14,984	$ 9,063	$ 10,695

Accrued liabilities - Other l_2

Accrued liabilities - Other liabilities, short-term and long-term (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)
Accrued liabilities
Short-term maturities		$ 280,744	$ 284,200	$ 5,981	$ 117,724
Long-term		216,702	136,555	$ 16,661	$ 327,934
Cancellations, or write off related to liabilities	$ 0	$ 0	$ 0

Employee benefits - Analysis of

Employee benefits - Analysis of net period cost (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee benefits
Current service cost	$ 4,977	$ 3,657	$ 2,421
Interest cost on benefit obligation	1,424	1,000	701
Net period cost	$ 6,401	$ 4,657	$ 3,122

Employee benefits - Changes in

Employee benefits - Changes in the defined benefit obligation and actuarial assumptions (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined benefit obligation and significant assumptions
Defined benefit obligation at beginning of the year	$ 19,289	$ 13,438	$ 10,056
Net period cost charged to profit or loss:
Current service cost	4,977	3,657	2,421
Interest cost on benefit obligation	1,423	1,000	701
Remeasurement losses in other comprehensive income:
Actuarial changes arising from changes in assumptions	(5,989)	1,776	442
Payments made	(1,547)	(582)	(182)
Defined benefit obligation at end of the year	$ 18,153	$ 19,289	$ 13,438
Discount rate	9.91%	7.72%	7.78%
Expected rate of salary increases	5.65%	5.50%	5.50%
Annual increase in minimum salary	4.15%	4.00%	4.00%
Employee profit-sharing (Note 15c)	$ 187,072	$ 114,781	$ 170,994
Employee profit sharing
Remeasurement losses in other comprehensive income:
Employee profit-sharing (Note 15c)	$ 14,984	$ 9,063	$ 10,695

Share-based payments - Share pu

Share-based payments - Share purchase plan (Details) $ in Thousands	Nov. 11, 2014MXN ($)	Nov. 30, 2018MXN ($)	Nov. 30, 2017MXN ($)	Oct. 31, 2016MXN ($)	Apr. 30, 2016MXN ($)	Nov. 30, 2014MXN ($)	Dec. 31, 2018EquityInstrumentsshares	Dec. 31, 2017EquityInstrumentsshares	Dec. 31, 2016EquityInstrumentsshares
Share purchase plan
Forfeited during the year							(121,451)
Share purchase plan
Share purchase plan
Special bonus granted | $						$ 10,831
Special bonus net of withheld taxes | $	$ 7,059
Cost of extensions to LTIP approved | $		$ 63,961	$ 15,765	$ 11,599	$ 14,532
Cost of extensions net of withheld taxes | $		$ 41,590	$ 10,108	$ 7,559	$ 9,466
Outstanding at beginning of the year							820,088	618,048	617,001
Purchased during the year | shares							3,208,115	547,310	513,002
Exercised/vested during the year							(353,457)	(345,270)	(425,536)
Forfeited during the year							(121,451)		(86,419)
Outstanding at end of the year							3,553,295	820,088	618,048

Share-based payments - Vesting

Share-based payments - Vesting period of shares granted under share purchase plan (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)EquityInstruments	Dec. 31, 2016MXN ($)EquityInstruments	Dec. 31, 2015EquityInstruments
Share-based payments
Compensation expense recorded in the consolidated statement of operations | $	$ 19,980	$ 13,508	$ 7,816
Forfeited during the year	(121,451)
Share purchase plan
Share-based payments
Shares outstanding	3,553,295	820,088	618,048	617,001
Compensation expense recorded in the consolidated statement of operations | $	$ 19,980	$ 13,508	$ 7,816
Forfeited during the year	(121,451)		(86,419)
Share purchase plan | Vesting / Exercisable within one year
Share-based payments
Shares outstanding	1,284,373
Share purchase plan | Vesting / Exercisable within two years
Share-based payments
Shares outstanding	1,207,862
Share purchase plan | Vesting / Exercisable within three years
Share-based payments
Shares outstanding	1,061,060

Share-based payments - SARs (ca

Share-based payments - SARs (cash settled) (Details) $ in Thousands	Nov. 06, 2014MXN ($)EquityInstruments	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)EquityInstruments	Dec. 31, 2016MXN ($)EquityInstruments
Share-based payments
Compensation (benefit) recorded in the consolidated statement of operations		$ (5,238)	$ (25,498)
Compensation expense recorded in the consolidated statement of operations				$ 86,100
SARs - cash settled
Share-based payments
Granted | EquityInstruments	4,315,264	0	3,965,351	2,044,604
Vesting period	3 years	3 years	3 years	3 years
Total amount granted	$ 10,831	$ 0	$ 15,765	$ 14,532
Carrying amount of the liability		537	723	15,744
Compensation (benefit) recorded in the consolidated statement of operations		$ (186)	$ (8,999)
Compensation expense recorded in the consolidated statement of operations				$ 31,743

Share-based payments - Vestin_2

Share-based payments - Vesting schedule of SARs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)EquityInstruments	Dec. 31, 2016MXN ($)EquityInstruments
Share-based payments
Forfeited during the year	121,451
SARs - cash settled
Share-based payments
Shares outstanding	2,106,586
Forfeited during the year	484,656	145,769	0
Cash payment related to key employees related to SARs plan | $	$ 0	$ 6,021	$ 31,261
Vesting / Exercisable within one year | SARs - cash settled
Share-based payments
Shares outstanding	1,348,777
Vesting / Exercisable within two years | SARs - cash settled
Share-based payments
Shares outstanding	757,809

Share-based payments - MIP I (D

Share-based payments - MIP I (Details)	Dec. 27, 2012MXN ($)	Dec. 24, 2012MXN ($)	Dec. 21, 2012MXN ($)EquityInstruments	Dec. 31, 2018MXN ($)	Dec. 31, 2016MXN ($)
Share-based payments
Cost of MIP related to the vested shares				$ 14,742,000	$ 93,916,000
MIP I
Share-based payments
Exercise price of shares		$ 5.31
Amount borrowed by trust	$ 133,723,000
Maximum term of share options		10 years
Total cost of MIP determined				$ 2,722,000
Series A and B shares | MIP I
Share-based payments
Number of instruments granted in share-based payment arrangement | EquityInstruments			25,164,126
Shares issued as a percentage of diluted capital stock			3.00%
Exercise price of shares			$ 5.31

Share-based payments - MIP I, a

Share-based payments - MIP I, assumptions (Details) - MIP I	Dec. 24, 2012MXN ($)Y	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)EquityInstruments	Dec. 31, 2016MXN ($)EquityInstruments
Share-based payments
Dividend yield (%)	0.00%
Volatility (%)	37.00%
Risk-free interest rate (%)	5.96%
Expected life of share options (years) | Y	8.8
Exercise price of shares	$ 5.31
Exercise multiple	1.1
Fair value of the stock at grant date	$ 1.73
Shares exercised | EquityInstruments		2,003,876	120,000	3,299,999
Series A shares
Share-based payments
Shares exercised | EquityInstruments		2,003,876	120,000	3,299,999
Amount paid to Management Trust corresponding to exercised shares		$ 10,654,000	$ 638,000	$ 17,536,000

Share-based payments - MIP I, m

Share-based payments - MIP I, movement in share options (Details) - MIP I	12 Months Ended
	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)EquityInstruments	Dec. 31, 2016MXN ($)EquityInstruments
Share-based payments
Outstanding at beginning of the year (shares) | EquityInstruments	12,437,857	12,557,857	15,857,856
Exercised during the year (shares) | EquityInstruments	(2,003,876)	(120,000)	(3,299,999)
Outstanding at end of the year (shares) | EquityInstruments	10,433,981	12,437,857	12,557,857
Outstanding at beginning of the year (Exercise price)	$ 5.31	$ 5.31	$ 5.31
Exercised during the year (Exercise price)	5.31	5.31	5.31
Outstanding at end of the year (Exercise price)	5.31	5.31	5.31
Outstanding at beginning of the year (Total)	66,095,000	66,733,000	84,269,000
Exercised during the year (Total)	(10,654,000)	(638,000)	(17,536,000)
Outstanding at end of the year (Total)	$ 55,441,000	$ 66,095,000	$ 66,733,000

Share-based payments - MIP II (

Share-based payments - MIP II (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)EquityInstruments	Dec. 31, 2016MXN ($)EquityInstruments
Share-based payments
Compensation expense recorded in the consolidated statement of operations | $	$ 19,980	$ 13,508	$ 7,816
Forfeited during the year	121,451
MIP II
Share-based payments
Vesting period	5 years
Extension of vesting period	5 years
Carrying amount of the liability | $	$ 32,807	37,858	54,357
Compensation expense recorded in the consolidated statement of operations | $			$ 54,357
Compensation (benefit) recorded in the consolidated statement of operations | $	$ (5,052)	$ (16,499)
Exercised during the year (shares)	0
Granted	7,912,360
Forfeited during the year	1,563,520	0	0
MIP II | Vesting / Exercisable within one year
Share-based payments
Granted	1,695,500
MIP II | Vesting / Exercisable within two years
Share-based payments
Granted	2,825,840
MIP II | Vesting / Exercisable within five years
Share-based payments
Granted	3,391,020

Share-based payments - (Benefit

Share-based payments - (Benefit) expense recognized in retention plan (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based payments
(Benefit) arising from cash-settled share-based payments transactions	$ (5,238)	$ (25,498)
Expense arising from cash-settled share-based payments transactions			$ 86,100
Expense arising from equity-settled share-based payments transactions	19,980	13,508	7,816
Total (benefit) arising from share-based payments transactions		$ (11,990)
Total expense arising from share-based payments transactions	$ 14,742		$ 93,916

Share-based payments - Board of

Share-based payments - Board of Directors Incentive Plan (BODIP) (Details) - BODIP	1 Months Ended	12 Months Ended
	Apr. 30, 2018USD ($)	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017MXN ($)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	4 years
Exercise price	$ 16.12	$ 16.12	$ 26.29
Shares available to be exercised		1,103,638

Equity - Authorized shares and

Equity - Authorized shares and secondary follow-on equity offering (Details)	Feb. 16, 2018shares	Dec. 31, 2018EquityInstruments$ / sharesshares	Dec. 31, 2017$ / sharesshares	Dec. 31, 2016$ / sharesshares
Equity
Par value | $ / shares		$ 0	$ 0	$ 0
Number of authorized shares		1,011,876,677	1,011,876,677	1,011,876,677
Treasury shares		(15,212,365)	(13,257,945)	(13,175,905)
Shares fully subscribed and paid		996,664,312	998,618,732	998,700,772
Forfeited during the year | EquityInstruments		121,451
Series A shares
Equity
Number of authorized shares		923,824,804	877,856,206	877,856,206
Series B shares
Equity
Number of authorized shares		88,051,873	134,020,471	134,020,471
Conversion of equivalent number of shares	45,968,598
Fixed Class I
Equity
Number of authorized shares		24,180	24,180	24,180
Shares fully subscribed and paid		24,180	24,180	24,180
Fixed Class I | Series A shares
Equity
Number of authorized shares		10,478	3,224	3,224
Fixed Class I | Series B shares
Equity
Number of authorized shares		13,702	20,956	20,956
Variable Class II
Equity
Number of authorized shares		1,011,852,497	1,011,852,497	1,011,852,497
Treasury shares		(15,212,365)	(13,257,945)	(13,175,905)
Shares fully subscribed and paid		996,640,132	998,594,552	998,676,592
Variable Class II | Series A shares
Equity
Number of authorized shares		923,814,326	877,852,982	877,852,982
Variable Class II | Series B shares
Equity
Number of authorized shares		88,038,171	133,999,515	133,999,515

Equity - Earnings per share (De

Equity - Earnings per share (Details) $ / shares in Units, $ / shares in Units, shares in Thousands, $ in Thousands, $ in Thousands	Apr. 19, 2017MXN ($)	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2018MXN ($)$ / sharesshares	Dec. 31, 2017MXN ($)$ / sharesshares	Dec. 31, 2016MXN ($)$ / sharesshares	Dec. 31, 2018MXN ($)
Equity
Net (loss) income for the period		$ (34,674)	$ (682,500)	$ (651,788)	$ 3,478,598
Weighted average number of shares outstanding (in thousands):
Basic		1,011,877	1,011,877	1,011,877	1,011,877
Diluted		1,011,877	1,011,877	1,011,877	1,011,877
LPS - EPS:
Basic | (per share)		$ (0.034)	$ (0.674)	$ (0.644)	$ 3.438
Diluted | (per share)		$ (0.034)	$ (0.674)	$ (0.644)	$ 3.438
Legal reserve		$ 14,794		$ 291,178	$ 38,250	$ 291,178
Legal reserve as a percent of capital stock		9.80%		9.80%		9.80%
Amount allocated to legal reserve | $	$ 252,928
Withholding tax on dividends distributions (as a percent)		10.00%	10.00%

Income tax - Income tax rates (

Income tax - Income tax rates (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income tax
Corporate income tax rate	30.00%	30.00%	30.00%
Employee wages and benefits tax deductible (as a percent)	47.00%
Withholding tax on dividends distributions (as a percent)	10.00%
Consolidated basis tax income	$ 777,513	$ 171,046	$ 2,702,355
Maximum
Income tax
Employee wages and benefits tax deductible (as a percent)	53.00%
Guatemala
Income tax
Corporate income tax rate	25.00%	25.00%	25.00%
Costa Rica
Income tax
Corporate income tax rate	30.00%	30.00%	30.00%
Period in which tax losses can be carried forward	3 years
Mexico
Income tax
Period in which tax losses can be carried forward	10 years

Income tax - Analysis of income

Income tax - Analysis of income tax expense (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Income tax
Current year income tax expense		$ (232,824)	$ (51,313)	$ (706,244)
Deferred income tax benefit (expense)		471,060	212,488	(750,938)
Total income tax benefit (expense)	$ 12,104	238,236	161,175	(1,457,182)
Deferred income tax expense, translation effect		2,683	1,008	1,242
Deferred tax related to items recognized in OCI during the year
Net gain (loss) on cash flow hedges		85,107	12,017	(187,408)
Remeasurement (loss) gain of employee benefits		(1,797)	533	132
Deferred tax charged to OCI		$ 83,310	$ 12,550	$ (187,276)

Income tax - Reconciliation of

Income tax - Reconciliation of statutory corporate income tax rate to effective tax rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income tax
Statutory income tax rate	30.00%	30.00%	30.00%
Non-deductible expenses			0.28%
Non-deductible expenses	(3.53%)	(3.90%)
Unrecorded deferred taxes on tax losses	(5.56%)	(14.55%)	0.09%
Foreign countries difference with Mexican statutory rate	(0.02%)	(0.32%)	0.04%
Inflation of tax losses	1.79%	1.50%	(0.01%)
Amendment tax return effects and other tax adjustments	(0.08%)	(0.31%)	(0.11%)
Inflation on furniture, intangible and equipment	2.91%	4.91%	(0.38%)
Annual inflation adjustment	0.36%	4.00%	(0.63%)
Total effective tax rate	25.87%	21.33%	29.28%

Income tax - Analysis of deferr

Income tax - Analysis of deferred taxes (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Analysis of consolidated deferred taxes
Net operating loss	$ 44,735	$ 880,530	$ 38,547	$ (2,698,800)
Deferred income tax assets					$ 2,029,811	$ 1,304,033	$ 978,683
Deferred income tax liabilities					2,531,961	2,357,870	2,256,550
Deferred tax liability, net		(1,053,837)	(1,277,867)	(340,895)	(502,150)	(1,053,837)	(1,277,867)
Reflected in consolidated statement of financial position
Deferred tax assets	30,143				593,302	562,445	559,083
Deferred tax liabilities	$ (55,655)				(1,095,452)	(1,616,282)	(1,836,950)
Deferred tax liability, net		(1,053,837)	(1,277,867)	(340,895)	(502,150)	(1,053,837)	(1,277,867)
Reconciliation of deferred tax liability, net
Deferred tax (liability) asset, net - beginning of the year		(1,053,837)	(1,277,867)	(340,895)
Deferred income tax benefit (expense) during the current year recorded on profits		468,377	211,480	(749,696)
Deferred income benefit (expense) during the current year recorded in accumulated other comprehensive income (loss)		83,310	12,550	(187,276)
Deferred tax (liability) asset, net - end of the year		(502,150)	(1,053,837)	(1,277,867)
Deferred tax assets
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		642,468	312,800	46,369
Intangible
Analysis of consolidated deferred taxes
Deferred income tax assets					460,590	463,211	481,626
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(2,621)	(18,415)	(16,637)
Provisions
Analysis of consolidated deferred taxes
Deferred income tax assets					324,445	351,989	343,294
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(27,544)	8,695	56,727
Tax losses available for offsetting against future taxable income
Analysis of consolidated deferred taxes
Deferred income tax assets					309,320	343,082	33,324
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(33,762)	309,758	(25,030)
Extension lease agreement
Analysis of consolidated deferred taxes
Deferred income tax assets					149,305	143,135	101,724
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		6,170	41,411	25,405
Unearned transportation revenue
Analysis of consolidated deferred taxes
Deferred income tax assets					735,355	35,941	65,755
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		699,414	(29,814)	7,039
Allowance for doubtful accounts
Analysis of consolidated deferred taxes
Deferred income tax assets					4,902	7,324	6,891
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(2,422)	433	(2,179)
Employee benefits
Analysis of consolidated deferred taxes
Deferred income tax assets					5,446	5,786	4,031
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		1,456	1,222	886
Employee profit sharing
Analysis of consolidated deferred taxes
Deferred income tax assets					4,493	2,716	3,206
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		1,777	(490)	158
Financial instruments
Analysis of consolidated deferred taxes
Deferred income tax assets					35,955
Deferred income tax liabilities						49,151	61,168
Deferred tax liabilities
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(174,091)	101,320	(796,065)
Supplemental rent
Analysis of consolidated deferred taxes
Deferred income tax liabilities					1,595,519	1,563,363	1,339,610
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(32,156)	223,753	(363,783)
Rotable spare parts, furniture and equipment, net
Analysis of consolidated deferred taxes
Deferred income tax liabilities					645,024	476,917	368,027
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(168,107)	108,890	(103,926)
Prepaid expenses and other assets
Analysis of consolidated deferred taxes
Deferred income tax liabilities					170,466	196,152	435,738
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		25,686	(239,586)	(280,660)
Inventories
Analysis of consolidated deferred taxes
Deferred income tax liabilities					88,895	88,169	72,883
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		(726)	15,286	(23,979)
Other prepayments
Analysis of consolidated deferred taxes
Deferred income tax liabilities					32,057	33,269	40,292
Reconciliation of deferred tax liability, net
Deferred income tax benefit (expense) during the current year recorded on profits		1,212	(7,023)	(23,717)
Costa Rica
Analysis of consolidated deferred taxes
Deferred income tax assets					$ 0	$ 0	$ 0
Costa Rica | Tax losses available for offsetting against future taxable income
Analysis of consolidated deferred taxes
Net operating loss		$ 170,731	$ 300,613	$ 57,414

Income tax - Tax loss carry-for

Income tax - Tax loss carry-forward (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Available tax loss carry-forward
Historical Loss	$ 1,652,668
Restated tax loss	1,739,403
Utilized	179,574
Total remaining amount	1,559,829
Unrecognized NOLs	(528,758)
Net remaining amount	$ 1,031,071
Statutory income tax rate	30.00%	30.00%	30.00%
Deferred income tax	$ 2,029,811	$ 1,304,033	$ 978,683
Tax balances
Restated contributed capital account (CUCA)	3,917,548
CUFIN	3,107,037
Tax losses available for offsetting against future taxable income
Available tax loss carry-forward
Deferred income tax	309,320	$ 343,082	$ 33,324
Comercializadora Volaris, S.A. de C.V.
Available tax loss carry-forward
Historical Loss	52,221
Restated tax loss	57,215
Utilized	57,215
Concesionaria
Available tax loss carry-forward
Historical Loss	1,067,836
Restated tax loss	1,149,425
Utilized	122,359
Total remaining amount	1,027,066
Operaciones Volaris
Available tax loss carry-forward
Historical Loss	3,853
Restated tax loss	4,005
Total remaining amount	4,005
Vuela, S.A.
Available tax loss carry-forward
Historical Loss	528,758
Restated tax loss	528,758
Total remaining amount	528,758
2016, Expiration 2019
Available tax loss carry-forward
Historical Loss	57,414
Restated tax loss	57,414
Total remaining amount	57,414
2016, Expiration 2026
Available tax loss carry-forward
Historical Loss	52,221
Restated tax loss	57,215
Utilized	57,215
2017, Expiration 2020
Available tax loss carry-forward
Historical Loss	300,613
Restated tax loss	300,613
Total remaining amount	300,613
2017, Expiration 2027
Available tax loss carry-forward
Historical Loss	1,068,498
Restated tax loss	1,150,140
Utilized	122,359
Total remaining amount	1,027,781
2018, Expiration 2021
Available tax loss carry-forward
Historical Loss	170,731
Restated tax loss	170,731
Total remaining amount	170,731
2018, Expiration 2028
Available tax loss carry-forward
Historical Loss	3,191
Restated tax loss	3,290
Total remaining amount	$ 3,290

Other operating income and ex_3

Other operating income and expenses (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)	Dec. 31, 2011MXN ($)
Analysis of other operating income
Gain (loss) on sale and leaseback		$ 609,168	$ 65,886	$ 484,827	$ (30,706)
Loss on sale of rotable spare parts furniture and equipment		(2,356)	(908)	(1,262)
Administrative benefits			27,180	9,072
Other income		15,161	4,607	4,105
Other operating income	$ 31,600	621,973	96,765	496,742
Analysis of other operating expenses
Administrative and operational support expenses		570,409	562,739	541,826
Technology and communications		385,841	373,394	266,898
Passenger services		70,337	59,261	45,439
Insurance		60,892	54,569	56,414
Rents of offices, maintenance warehouse and hangar		36,483	30,544	33,517
Disposal of intangible, rotable spare parts, furniture and equipment			11	436
Others		5,949	7,922	7,922
Other operating expenses	$ 57,406	$ 1,129,911	$ 1,088,440	$ 952,452

Finance income and cost (Detail

Finance income and cost (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Analysis of finance income
Interest on cash and equivalents		$ 152,437	$ 105,151	$ 78,793
Interest on recovery of guarantee deposits		166	644	23,792
Others				6
Total finance income	$ 7,753	152,603	105,795	102,591
Analysis of finance cost
Cost of letter credit notes		57,277	42,294	28,067
Interest on debts and borrowings		56,916	37,565	1,245
Bank fees and others		6,141	5,279	5,804
Other finance costs			1,219
Total finance costs	$ 6,114	120,334	86,357	35,116
Capitalized borrowing costs
Interest on debts and borrowings		414,836	230,954	96,690
Capitalized interest		(357,920)	(193,389)	(95,445)
Interest on debts and borrowing in the consolidated statements of operations		$ 56,916	$ 37,565	$ 1,245

Components of other comprehen_3

Components of other comprehensive income (loss) (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2016MXN ($)
Derivative financial instruments:
Reclassification of call options and forwards during the year to profit or loss (Note 4)		$ (455,009)	$ 52,097	$ 353,943
Net gain (loss) on cash flow hedges	$ (14,413)	(283,691)	(42,148)	624,694
Jet fuel Asian call options
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		227,509	(81,182)	277,899
Net gain (loss) on cash flow hedges		(174,984)	(54,202)	583,065
Jet fuel Zero cost collars
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		(122,948)
Net gain (loss) on cash flow hedges		(122,948)
Foreign currency forward contract
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		$ 66,757	(13,380)
Interest rate swap contracts
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax			317	(7,148)
Net gain (loss) on cash flow hedges			$ 14,144	$ 41,629

Commitments and contingencies_2

Commitments and contingencies (Details) $ in Thousands, $ in Thousands	Apr. 25, 2019$ / $	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2018USD ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017$ / $	Dec. 31, 2017Q / $	Dec. 31, 2017₡ / $	Dec. 31, 2016$ / $	Dec. 31, 2016Q / $	Dec. 31, 2016₡ / $
Commitments and contingencies
2019					$ 76,559	$ 1,506,903
2020					136,936	2,695,298
2021					164,856	3,244,844
2022 and thereafter					691,836	13,617,339
Total committed expenditures					$ 1,070,187	$ 21,064,384
Exchange rate	18.9578	19.6829	7.7440	609.6100			19.7354	7.3448	572.5600	20.6640	7.5221	561.1000

Operating segments (Details)

Operating segments (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)segment	Dec. 31, 2018MXN ($)segment	Dec. 31, 2017MXN ($)segment	Dec. 31, 2016MXN ($)segment
Operating segments
Number of geographic segments | segment	2	2	2	2
Total operating revenues	$ 1,387,252	$ 27,305,150	$ 24,788,186	$ 23,471,560
Domestic (Mexico)
Operating segments
Total operating revenues		18,493,476	17,272,946	15,694,044
United States of America and Central America
Operating segments
Total operating revenues		$ 8,811,674	$ 7,515,240	$ 7,777,516
United States of America
Operating segments
Percentage of total revenues from external customers	32.00%	32.00%	30.00%	32.00%