Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (VLRS) 20-F 30 Apr 21 2020 FY Annual report (foreign) Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2020shares
IFRS Statement [Line Items]
Entity Registrant Name	Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Entity Central Index Key	0001520504
Document Type	20-F
Document Period End Date	Dec. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Shell Company	false
Entity Interactive Data Current	Yes
ICFR Auditor Attestation Flag	false
American Depositary Shares
IFRS Statement [Line Items]
Title of 12(b) Security	American Depositary Shares (ADSs)
Trading Symbol	VLRS
Security Exchange Name	NYSE
Ordinary Participation Certificates
IFRS Statement [Line Items]
Title of 12(b) Security	Ordinary Participation Certificates (Certificados de Participación Ordinarios or CPOs)
Trading Symbol	VLRS
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding	806,435,856
Series A shares
IFRS Statement [Line Items]
Title of 12(b) Security	Series A shares of common stock, no par value
Trading Symbol	VOLARA
Security Exchange Name	MIAX
Entity Common Stock, Shares Outstanding	923,824,804

Consolidated Statements of Fina

Consolidated Statements of Financial Position $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Current assets:
Cash and cash equivalents ( Note 6)	$ 506,468	$ 10,103,385	$ 7,979,972
Accounts receivable:
Related parties (Note 7)	3,641	72,629	23,442
Other accounts receivable, net (Note 8)	28,104	560,640	923,000
Recoverable value added tax and others	46,242	922,458	938,532
Recoverable income tax	23,643	471,652	435,360
Inventories (Note 9)	13,984	278,959	301,908
Prepaid expenses and other current assets (Note 10)	42,631	850,425	781,131
Financial instruments (Notes 3 and 5)	10	206	133,567
Guarantee deposits (Note 11)	57,245	1,141,956	600,327
Total current assets	721,968	14,402,310	12,117,239
Non-current assets:
Rotable spare parts, furniture and equipment, net (Note 12)	364,994	7,281,157	7,385,334
Right-of-use assets (Note 14)	1,720,223	34,316,217	34,128,766
Intangible assets, net (Note 13)	9,603	191,562	167,397
Financial instruments (Notes 3 and 5)	16	326	2,695
Deferred income taxes (Note 19)	156,830	3,128,555	1,542,536
Guarantee deposits (Note 11)	422,320	8,424,738	7,644,421
Other assets	5,975	119,202	165,546
Other long-term assets	16,294	325,046	141,193
Total non-current assets	2,696,255	53,786,803	51,177,888
Total assets	3,418,223	68,189,113	63,295,127
Current liabilities:
Unearned transportation revenue (Note 1d)	293,298	5,850,917	3,679,926
Suppliers	112,275	2,239,736	1,597,099
Related parties (Note 7)	6,266	124,993	58,554
Accrued liabilities (Note 15a)	118,118	2,356,287	2,531,861
Lease liabilities (Note 14)	325,038	6,484,092	4,720,505
Other taxes and fees payable (Note 1q)	112,096	2,236,161	2,102,455
Income taxes payable	201	4,005	140,609
Financial instruments (Notes 3 and 5)	484	9,657
Financial debt (Note 5)	78,144	1,558,884	2,086,017
Other liabilities (Note 15c)	5,074	101,218	407,190
Total current liabilities	1,050,994	20,965,950	17,324,216
Non-current liabilities:
Financial debt (Note 5)	190,276	3,795,749	2,889,952
Accrued liabilities (Note 15b)	3,343	66,698	90,796
Lease liabilities (Note 14)	1,887,163	37,646,450	35,796,540
Other liabilities (Note 15c)	133,727	2,667,683	1,469,595
Employee benefits (Note 16)	2,538	50,627	38,206
Deferred income taxes (Note 19)	10,014	199,771	156,139
Total non-current liabilities	2,227,061	44,426,978	40,441,228
Total liabilities	3,278,055	65,392,928	57,765,444
Equity (Note 18):
Capital stock	171,761	3,426,406	2,973,559
Treasury shares	(11,216)	(223,744)	(169,714)
Contributions for future capital increases		1	1
Legal reserve	14,596	291,178	291,178
Additional paid-in capital	236,618	4,720,221	1,880,007
Retained (losses) earnings	(193,265)	(3,855,379)	438,412
Accumulated other comprehensive (loss) income	(78,326)	(1,562,498)	116,240
Total equity	140,168	2,796,185	5,529,683
Total liabilities and equity	$ 3,418,223	$ 68,189,113	$ 63,295,127

Consolidated Statements of Fi_2

Consolidated Statements of Financial Position (Parenthetical)	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Consolidated Statements of Financial Position
Convenience translation to U.S. dollars	19.9785	19.9487	7.8095	615.7800	19.9487	18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100

Consolidated Statements of Oper

Consolidated Statements of Operations $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / shares	Dec. 31, 2020MXN ($)$ / shares	Dec. 31, 2019MXN ($)$ / shares	Dec. 31, 2018MXN ($)$ / shares
Operating revenues (Notes 1d and 24):
Fare revenues	$ 645,314	$ 12,873,174	$ 23,129,991	$ 18,487,858
Other passenger revenues	431,777	8,613,398	10,569,208	7,892,497
Passenger revenues	1,077,091	21,486,572	33,699,199	26,380,355
Other non-passenger revenues (Note 1d)	44,231	882,360	897,586	697,357
Cargo	10,120	201,881	228,836	227,438
Non-derivatives financial instruments	(20,614)	(411,222)	(72,949)
Operating revenues	1,110,828	22,159,591	34,752,672	27,305,150
Other operating income (Note 20)	(36,611)	(730,333)	(327,208)	(621,973)
Fuel expense, net	332,895	6,640,820	11,626,069	10,134,982
Landing, take-off and navigation expenses	205,069	4,090,864	5,108,489	4,573,319
Depreciation of right of use assets (Note 14)	253,098	5,048,976	4,702,971	4,043,691
Salaries and benefits	173,113	3,453,382	3,600,762	3,125,393
Maintenance expenses	58,536	1,167,720	1,488,431	1,497,989
Sales, marketing and distribution expenses	92,278	1,840,819	1,447,637	1,501,203
Aircraft and engine variable lease expenses	92,500	1,845,254	961,657	956,010
Other operating expenses (Note 20)	58,011	1,157,240	1,112,927	1,059,098
Depreciation and amortization (Notes 12 and 13)	45,038	898,445	675,514	500,641
Operating (loss) income	(163,099)	(3,253,596)	4,355,423	534,797
Finance income (Note 21)	5,089	101,511	207,799	152,603
Finance cost (Note 21)	(151,313)	(3,018,484)	(2,269,829)	(1,876,312)
Foreign exchange gain (loss), net	23,591	470,594	1,440,501	(103,790)
(Loss) income before income tax	(285,732)	(5,699,975)	3,733,894	(1,292,702)
Income tax benefit (expense) (Note 19)	70,490	1,406,184	(1,094,831)	349,820
Net (loss) income	$ (215,242)	$ (4,293,791)	$ 2,639,063	$ (942,882)
(Loss) earnings per share basic: | (per share)	$ (0.211)	$ (4.203)	$ 2.608	$ (0.932)
(Loss) earnings per share diluted: | (per share)	$ (0.211)	$ (4.203)	$ 2.608	$ (0.932)

Consolidated Statements of Op_2

Consolidated Statements of Operations (Parenthetical)	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Consolidated Statements of Operations
Convenience translation to U.S. dollars	19.9785	19.9487	7.8095	615.7800	19.9487	18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Consolidated Statements of Comprehensive Income
Net (loss) income for the year	$ (215,242)	$ (4,293,791)	$ 2,639,063	$ (942,882)
Other comprehensive (loss) income to be reclassified to profit or loss in subsequent periods:
Net (loss) gain on cash flow hedges (Note 22)	(87,609)	(1,747,686)	263,495	(283,691)
Income tax effect (Note 19)	2,348	46,835	(74,820)	85,107
Exchange differences on translation of foreign operations	1,202	23,970	8,045	22,156
Other comprehensive (loss) income not to be reclassified to profit or loss in subsequent periods:
Remeasurement (loss) gain of employee benefits (Note 16)	(133)	(2,651)	(10,192)	5,989
Income tax effect (Note 19)	40	794	3,058	(1,797)
Other comprehensive (loss) income for the year, net of tax	(84,152)	(1,678,738)	189,586	(172,236)
Total comprehensive (loss) income for the year, net of tax	$ (299,394)	$ (5,972,529)	$ 2,828,649	$ (1,115,118)

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical)	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Consolidated Statements of Comprehensive Income
Convenience translation to U.S. dollars	19.9785	19.9487	7.8095	615.7800	19.9487	18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100

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 ($)	Retained (losses) earningsUSD ($)	Retained (losses) earningsMXN ($)	Other comprehensive (loss) incomeUSD ($)	Other comprehensive (loss) incomeMXN ($)	USD ($)	MXN ($)
Balance as of beginning of the year at Dec. 31, 2017		$ 2,973,559		$ (85,034)	$ 1		$ 291,178		$ 1,804,528		$ (1,257,769)		$ 98,890		$ 3,825,353
Treasury shares				(57,320)					41,590						(15,730)
Exercise of stock options (Note 17)				10,648											10,648
Long-term incentive plan cost (Note 17)				9,045					(9,045)
Net (loss) income for the period | As previously reported											(682,500)				(682,500)
Net (loss) income for the period															(942,882)
IFRS 16 adoption | IFRS 16 adoption											(260,382)				(260,382)
Other comprehensive (loss) income items													(172,236)		(172,236)
Total comprehensive (loss) income for the year, net of tax											(942,882)		(172,236)		(1,115,118)
Balance as of end of the year at Dec. 31, 2018		2,973,559		(122,661)	1		291,178		1,837,073		(2,200,651)		(73,346)		2,705,153
Treasury shares				(75,375)					56,483						(18,892)
Exercise of stock options (Note 17)				14,773											14,773
Long-term incentive plan cost (Note 17)				13,549					(13,549)
Net (loss) income for the period											2,639,063				2,639,063
Other comprehensive (loss) income items													189,586		189,586
Total comprehensive (loss) income for the year, net of tax											2,639,063		189,586		2,828,649
Balance as of end of the year at Dec. 31, 2019		2,973,559		(169,714)	1		291,178		1,880,007		438,412		116,240		5,529,683
Capital stock increase (Note 18)		452,847							2,819,985						3,272,832
Treasury shares				(94,564)					60,763						(33,801)
Long-term incentive plan cost (Note 17)				40,534					(40,534)
Net (loss) income for the period											(4,293,791)			$ (215,242)	(4,293,791)
Other comprehensive (loss) income items													(1,678,738)	(84,152)	(1,678,738)
Total comprehensive (loss) income for the year, net of tax											(4,293,791)		(1,678,738)	(299,394)	(5,972,529)
Balance as of end of the year at Dec. 31, 2020	$ 171,761	$ 3,426,406	$ (11,216)	$ (223,744)	$ 1	$ 14,596	$ 291,178	$ 236,618	$ 4,720,221	$ (193,265)	$ (3,855,379)	$ (78,326)	$ (1,562,498)	$ 140,168	$ 2,796,185

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical)	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Consolidated Statements of Changes in Equity
Convenience translation to U.S. dollars	19.9785	19.9487	7.8095	615.7800	19.9487	18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Operating activities
(Loss) income before income tax	$ (285,732,000)	$ (5,699,975)	$ 3,733,894	$ (1,292,702)
Non-cash adjustment to reconcile (loss) income before income tax to net cash flows from operating activities:
Depreciation and amortization (including right-of-use-assets) (Notes 12,13 and 14)	298,136,000	5,947,421	5,378,485	4,544,332
Allowance for credit losses	685,000	13,664	40,393	10,621
Finance income (Note 21)	(5,089,000)	(101,511)	(207,799)	(152,603)
Finance cost (Note 21 )	128,406,000	2,561,526	2,265,242	1,876,312
Net foreign exchange differences	(28,753,000)	(573,591)	(1,722,985)	171,874
Financial instruments (Notes 3 and 4)	65,496,000	1,306,557	67,629	(455,009)
Amortized Cost (CEBUR)	347,000	6,930	3,306
Net gain on disposal of rotable spare parts, furniture and equipment and gain on sale of aircraft (Note 20)	(35,487,000)	(707,918)	(275,805)	(606,812)
Employee benefits (Note 16)	555,000	11,079	10,086	6,401
Aircraft and engine lease extension benefit and other benefits from service agreements	(533,000)	(10,633)	(10,634)	(12,693)
Management incentive and long-term incentive plans	2,445,000	48,772	32,257	12,919
Cash flows from operating activities before changes in working capital	140,476,000	2,802,321	9,314,069	4,102,640
Changes in operating assets and liabilities:
Related parties	864,000	17,252	25,603	(31,422)
Other accounts receivable	39,754,000	793,045	(367,603)	1,711
Recoverable and prepaid taxes	(1,103,000)	(22,010)	(425,410)	19,168
Inventories	1,150,000	22,949	(4,637)	(2,421)
Prepaid expenses	3,670,000	73,220	(369,860)	(6,001)
Other assets	2,843,000	56,717	(10,789)	(11,228)
Guarantee deposits	(70,036,000)	(1,397,131)	(1,168,537)	232,019
Suppliers	44,726,000	892,232	518,189	14,022
Accrued liabilities	(28,131,000)	(561,229)	352,475	540,471
Other taxes and fees payable	8,260,000	164,777	119,700	558,174
Unearned transportation revenue	108,829,000	2,170,991	1,241,410	145,207
Financial instruments	(63,759,000)	(1,271,904)	(18,943)	807,644
Other liabilities	38,661,000	771,229	191,099	(38,875)
Cash flows from operating activities before interest received and income tax paid	226,204,000	4,512,459	9,396,766	6,331,109
Interest received	5,089,000	101,511	207,799	152,602
Income tax paid	(12,759,000)	(254,525)	(94,922)	(207,004)
Net cash flows provided by operating activities	218,534,000	4,359,445	9,509,643	6,276,707
Investing activities
Acquisitions of rotable spare parts, furniture and equipment (Note 12)	(169,263,000)	(3,376,576)	(3,483,368)	(2,743,155)
Acquisitions of intangible assets (Note 13)	(6,252,000)	(124,724)	(77,325)	(71,007)
Pre-delivery payments reimbursements (Note 12)	85,737,000	1,710,338	704,852	668,365
Proceeds from disposals of rotable spare parts, furniture and equipment	86,382,000	1,723,205	976,500	756,402
Net cash flows used in investing activities	(3,396,000)	(67,757)	(1,879,341)	(1,389,395)
Financing activities
Net proceeds from public offering (Note 18)	164,062,000	3,272,832
Proceeds from exercised stock options (Note 17)			14,773	10,648
Treasury shares purchase	(4,740,000)	(94,564)	(75,375)	(57,320)
Interest paid	(14,007,000)	(279,423)	(217,018)	(175,170)
Other finance interest paid	(612,000)	(12,214)	(60,824)	(28,567)
Payments of principal portion of lease liabilities (Note 14)	(306,314,000)	(6,110,569)	(6,499,802)	(5,710,907)
Payments of financial debt	(107,285,000)	(2,140,194)	(1,181,726)	(1,193,589)
Proceeds from financial debt	116,464,000	2,323,292	2,781,132	1,208,846
Net cash flows used in financing activities	(152,432,000)	(3,040,840)	(5,238,840)	(5,946,059)
Increase (decrease) in cash and cash equivalents	62,706,000	1,250,848	2,391,462	(1,058,747)
Net foreign exchange differences on cash balance	43,737,000	872,565	(274,432)	(29,190)
Cash and cash equivalents at beginning of year	400,025,000	7,979,972	5,862,942	6,950,879
Cash and cash equivalents at end of year	$ 506,468,000	$ 10,103,385	$ 7,979,972	$ 5,862,942

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows (Parenthetical)	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Consolidated Statements of Cash Flows
Convenience translation to U.S. dollars	19.9785	19.9487	7.8095	615.7800	19.9487	18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100

Description of the business and

Description of the business and summary of significant accounting policies	12 Months Ended
	Dec. 31, 2020
Description of the business and summary of significant accounting policies
Description of the business and summary of significant accounting policies	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. On February 24, 2020, Concesionaria’s concession was extended for a 20-year term starting on May 9, 2020. 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 approved by the Company’s Board of Directors and the Shareholders on April 26, 2021. These consolidated financial statements were also approved for issuance in the Company’s annual report on Form 20-F by the Company’s President and Chief Executive Officer, Enrique Beltranena, and the Senior Vice president and Chief Financial Officer, Jaime E. Pous Fernández, on April 29, 2021. The Company´s Board of Directors and Shareholders have the authority to approve or modify the Company´s consolidated financial statements. Subsequent events have been considered through April 30, 2021 (Note 25). a) Relevant events Upsized Offering of ADSs On December 11, 2020, Controladora Vuela Compañía de Aviación, S.A.B. de C.V announced the closing of an upsized primary follow-on equity offering in which the Company offered 134,000,000 of its Ordinary Participation Certificates (Certificados de Participación Ordinarios), or CPOs, in the form of American Depositary Shares, or ADSs, at a price to the public of USD11.25 per ADS in the United States and other countries outside of Mexico, pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). In connection with the offering, the underwriters exercised their option to purchase up to 20,100,000 additional CPOs in the form of ADSs. Each ADS represents 10 CPOs and each CPO represents a financial interest in one Series A share of common stock of the Company (Note 18). Covid-19 commentary The ongoing outbreak of COVID-19 was first reported on December 31, 2019 in Wuhan, Hubei Province, China. From Wuhan, the disease spread rapidly to other parts of China as well as other countries, including Mexico and the United States. The first case of COVID-19 in Mexico was confirmed on February 28, 2020. In the following weeks, the Mexican government took various measures in order to prepare the country for a mass contagion, including declaring a national health emergency, asking the public to stay home, closing schools and imposing restrictions on non-essential activities in the public, private and social sectors. As a result of the national health emergency and health security measures imposed by the Mexican government in the spring of 2020, the Company´s capacity as measured by available seat miles (“ASMs”) was reduced. In April and May of 2020, the Company´s capacity as measured by ASMs was reduced by up to 80% and 90%, respectively, and remained reduced from June to November of 2020. Additionally, the Company suspended service on certain routes. Costa Rica, Guatemala and El Salvador imposed operational and migratory restrictions that made it impossible to operate international passenger flights to those countries. A gradual opening of the economy and easing of lockdown measures in Mexico and the other countries in which the Company operates led to a recovery in the ASMs and route operation during the second half of the year, with the Company´s capacity returning to over 100% of 2019 levels for the month of December. The Company has taken actions to preserve liquidity and sustain its operations during the period, establishing vendor and supplier’s payment deferral, reducing management’s compensations and other salaries and deferring capital expenditures and certain other measures. Liquidity and cash The Company implemented a strict liquidity preservation program, which resulted in approximately U.S. $200 million of savings as of December 31, 2020 through items such as cost reductions and deferral agreements with suppliers. In addition, the Company negotiated cost reductions with more than 360 suppliers and cut non-essential expenses. The Company also implemented online training and leave of absence programs in order to reduce costs. As of December 31, 2020, our cash and cash equivalents were Ps.10,103,385. Fleet plan The new contractual fleet plan with Airbus allows to the Company to maintain a “cautiously” sized fleet, that will remain at approximately 85 aircraft, net of new deliveries and redeliveries, until 2023. Customers and employees Additionally, the Company launched a new biosecurity and cleaning protocol and are communicating proactively with all staff, especially with crews and airport staff, regarding health and COVID-19 developments. Commercial and network growth opportunities. The Company is closely monitoring capacity reductions from competitors for possible opportunities, testing new ancillary products and running targeted promotions to test potential stimulation of air travel. The Company remained focused on price sensitive visiting friends and relatives, leisure and small and medium sized enterprises segments, which continued to show the strongest demand for air travel in Mexico as the market recovers from COVID-19. As of December 31, 2020, Volaris was positioned as the domestic market leader in 2020. In addition, the Company considered the impact of Covid‑19 in preparing their financial statements. Since the Company business and the airline industry have experienced material adverse impacts due to the COVID-19 pandemic, the Company cannot offer any assurance that these impacts will not intensify to the extent that COVID-19 persists throughout Mexico. Further, additional government COVID-19 response measures remain unknown and depend on future developments with respect to COVID-19, including the scope and duration of the pandemic, which are highly fluid, uncertain and cannot be predicted. It is not yet possible to determine when the adverse effects of COVID-19 will abate and the extent to which they will further decrease demand for air travel, which could continue to materially and negatively affect our business, results of operations and financial condition. Issuance asset backed trust notes On June 20, 2019, the Company, through its subsidiary Concesionaria, issued 15,000,000 asset backed trust notes (certificados bursátiles fiduciarios; the “ Trust Notes ”), under the ticker symbol VOLARCB 19 for the amount of Ps.1.5 billion Mexican pesos by CIBanco, S.A., Institución de Banca Multiple, acting as Trustee under the Irrevocable Trust number CIB/3249 created by Concesionaria in the first issuance under a program approved by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) for an amount of up to Ps.3.0 billion Mexican pesos. The Trust Notes are backed by future receivables under agreements entered into with credit card processors with respect to funds received from the sale of airplane tickets and ancillaries denominated in Mexican pesos, through credit cards VISA and Mastercard, via the Company’s website, mobile app and travel agencies. The Trust Notes were listed on the Mexican Stock Exchange, have a maturity of five years and will pay an interest rate of TIIE 28 plus 175 basis points (Note 5b). 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. b) Basis of preparation Statement of compliance These consolidated financial statements comprise the financial statements of the Company and its subsidiaries at December 31, 2020 and 2019 and for each of the three years ended December 31, 2020, 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. 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, 2020 and 2019, for accounting purposes the companies included in the consolidated financial statements are as follows: Principal % Equity interest Name Activities Country 2020 2019 Concesionaria Air transportation services for passengers, cargo and mail throughout Mexico and abroad Mexico 100 % 100 % Vuela Aviación, S.A. Air transportation services for passengers, cargo and mail in Costa Rica and abroad Costa Rica 100 % 100 % Vuela, S.A. (“Vuela”) * Air transportation services for passengers, cargo and mail in Guatemala and abroad Guatemala 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 % 100 % Comercializadora Volaris, S.A. de C.V. Merchandising of services Mexico 100 % 100 % Servicios Earhart, S.A.* Recruitment and payroll Guatemala 100 % 100 % Servicios Corporativos Volaris, S.A. de C.V. (“Servicios Corporativos”) Recruitment and payroll Mexico 100 % 100 % Servicios Administrativos Volaris, S.A. de C.V. (“Servicios Administrativos”) Recruitment and payroll Mexico 100 % 100 % Comercializadora V Frecuenta, S.A. de C.V. (“Loyalty Program”) ** Loyalty Program Mexico 100 % 100 % Viajes Vuela, S.A. de C.V. (“Viajes Vuela”) Travel agency Mexico 100 % 100 % Deutsche Bank México, S.A., Trust 1710 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % Deutsche Bank México, S.A., Trust 1711 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % Irrevocable Administrative Trust number F/307750 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number F/745291 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number CIB/3081 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number CIB/3249 “Administrative Trust” Asset backed securities trustor & administrator (Note 5) Mexico 100 % 100 % *The Companies have not started operations yet in Guatemala and El Salvador. **The Company has not started operations yet 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. 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 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, as a modification of the tickets sold to V Club members. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue when the service is provided. The Company sells certain tickets with connecting flights with one or more segments operated by its other airline partner. For segments operated by its other airline partners, the Company has determined that it is acting as an agent on behalf of the other airlines as they are responsible for their portion of the contract (i.e. transportation of the passenger). The Company, as the agent, recognizes revenue within Other operating revenue at the time of the travel for the net amount retained by the Company for any segments flown by other airlines. 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 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. 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 2018. 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. 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 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´s tickets are non-refundable. However, if the Company cancels a flight for causes attributable to the airline, including as a result of the COVID-19 pandemic, then the passenger is entitled to either move their flight at no cost, receive a refund or a voucher. No revenue is recognized until either the voucher is redeemed, and the associate flight occurs, or the voucher expires. When vouchers issued exceed the amount of the original amount paid by the passenger the excess is recorded as reduction of the operating revenues. All of the Company´s revenues related to future services are rendered through an approximate period of 12 months. As of December 31, 2020, the Company recorded an amount of Ps.1,720,939 related to vouchers to be redeemed by passengers, which were presented as part of the unearned transportation revenues. Breakdown of revenues: As of December 31, 2020, 2019 and 2018, the revenues from customers of contracts is described as follows: At the flight time At the sale Total Revenue recognition as of December 31, 2020 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 8,455,647 Ps. 4,417,527 Ps. — Ps. — Ps. 12,873,174 Other Passenger Revenues 6,920,141 1,536,206 124,450 32,601 8,613,398 15,375,788 5,953,733 124,450 32,601 21,486,572 Non-Passenger Revenues Other Non-Passenger revenues 875,610 6,750 — — 882,360 Cargo 196,349 5,532 — — 201,881 Total Ps. 16,447,747 Ps. 5,966,015 Ps. 124,450 Ps. 32,601 Ps. 22,570,813 Non-derivative financial instruments (411,222) Ps. 22,159,591 At the flight time At the sale Total Revenue recognition as of December 31, 2019 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 15,833,878 Ps. 7,296,113 Ps. — Ps. — Ps. 23,129,991 Other Passenger Revenues 7,531,725 2,865,555 119,466 52,462 10,569,208 23,365,603 10,161,668 119,466 52,462 33,699,199 Non-Passenger Revenues Other Non-Passenger revenues 888,353 9,233 — — 897,586 Cargo 221,375 7,461 — — 228,836 Total Ps. 24,475,331 Ps. 10,178,362 Ps. 119,466 Ps. 52,462 Ps. 34,825,621 Non-derivative financial instruments (72,949) Ps. 34,752,672 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 Transactions from unearned transportation revenues. 2020 2019 January 1, Ps. 3,679,926 Ps. 2,438,516 Deferred 23,657,563 34,940,609 Recognized in revenue during the year (21,486,572) (33,699,199) December 31, Ps. 5,850,917 Ps. 3,679,926 The performance obligations related to contract liability are recognized over the following 12 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. The Company has agreements with financial institutions that process customer credit card transactions for the sale of air travel and other services. These credit card processing agreements doesn’t have significant cash reserve requirements. 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 recognition 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. Financial assets at fair value through OCI with recycling of cumulative gains and losses. 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. 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 8. For trade receivables, the Company applies a simplified approach in calculating expected credit losses (ECLs). Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. For the years ended December 31, 2020 y 2019 the Company recorded expected credit losses on accounts receivable of Ps.13,664 and Ps.40,393, 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, 2020 and 2019 the Company has 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 softwa

Significant accounting judgment

Significant accounting judgments, estimates and assumptions	12 Months Ended
	Dec. 31, 2020
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. For Leases significant accounting judgments, estimates and assumptions refer to Note 1p (iv). i) 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. ii) 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, 2020, 2019 and 2018, the Company used Ps.0, Ps.214,460 and Ps.154,353, respectively, of the available tax loss carry-forwards. iii) Fair value measurement 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). iv) Impairment of long-lived assets The Company assesses whether there are indicators of impairment for long-lived assets and right of use 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. In making these determinations, the Company uses certain assumptions, including, but not limited to estimated, undiscounted future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used in the Company’s operations, excluding additions and extensions. The Company's assumptions about future conditions important to its assessment of potential impairment of its long-lived assets, including the impact of the COVID-19 pandemic to its business, are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available, and will updated its analyses accordingly. The Company has assessed whether any impairment of its long-lived assets existed and has determined that no charges were deemed necessary under applicable accounting standards as of December 31, 2020. v) 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). vi) Leases - Estimating the incremental borrowing rate The Company cannot readily determine the interest rate implicit in its leases, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).

Financial instruments and risk

Financial instruments and risk management	12 Months Ended
	Dec. 31, 2020
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, 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, 2020, 2019 and 2018 represented 28%, 38% and 38%, of the Company’s operating expenses, respectively. The foreign currency risk is disclosed within subsection b) in this note. During the year ended December 31, 2020 and 2019, the Company entered into US Gulf Coast Jet fuel 54 Asian call options designated to hedge 23,967 and 13,492 thousand gallons respectively. Such hedges represented a portion of the projected consumption for the 2Q 2020, 3Q 2020 & 1Q 2021 and for the 4Q 2019, respectively. Additionally, during the same period, the Company entered into US Gulf Coast Jet Fuel 54 Asian Zero-Cost collar options designated to hedge 81,646 thousand gallons and 70,136 thousand gallons, respectively. Such hedges represent a portion of the projected consumption for the 2Q 2020, 2H 2020 & 2Q 2021 and the year 2020, respectively. Furthermore, the Company restructured part of its hedging portfolio by unwinding put legs on two Zero-Cost Collars instruments with maturity dates of June & July to reduce crude market exposure, in line with capacity adjustments due to COVID-19 outbreak. For the year ended December 31, 2020, the Company recognized an unwind of the Zero cost collar of Ps.42,644 which was recognized as part of finance cost. 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 options and Zero-Cost Collars. The Company has a hedging policy in place to stablish guidelines to hedge fuel consumption; nevertheless, with COVID-19 outbreak, capacity was considerably reduced, thereby, ineffectiveness arose in the hedging relationship. As of December 31, 2020 and 2019, the fair value of the outstanding US Gulf Coast Jet Fuel Asian call options was Ps.206 and Ps.0, respectively. As of December 31, 2020 and 2019 the Zero-Cost Collars outstanding balance was of Ps.(9,657) and Ps.133,567, respectively and are presented as part of the financial assets and financial liabilities in the consolidated statement of financial position. (See Note 4). During the year ended December 31, 2020, the intrinsic value of the Asian call options recycled to the fuel cost was an expense of Ps.33,627 (Ps.20,646 which was recognized in the fuel cost and an expense of Ps.12,981 in finance cost). During the year ended December 31, 2019, the intrinsic value of the Asian call options recycled to the fuel cost was an expense of Ps.61,069. During the year ended December 31, 2018, the intrinsic value of the Asian call options recycled to the fuel cost was a benefit of Ps.402,493. During the year ended December 31, 2020, the intrinsic value of the Zero-Cost Collars recycled to the fuel cost was an expense of Ps.1,271,462. (Ps.835,884 which was recognized in the fuel cost and an expense of Ps.435,578 in finance cost) and for the year ended December 2019 and 2018 the intrinsic value of the Zero-Cost Collars recycled to the fuel cost was an expense of Ps.9,477. As of December 31, 2018, the Company did not have intrinsic value recycled to the fuel cost as settlements started taking place on 2019. The cost of hedging derived from the extrinsic value changes of the jet fuel hedged position as of December 31, 2020 recognized in other comprehensive income totals Ps.21,650. The (benefit) cost of hedging in December 2019 and 2018 totals Ps.(133,567) and Ps.134,096, and will be recycled to the fuel cost during 2021, as these options expire on a monthly basis and the jet fuel is consumed. 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, 2020 Jet fuel Asian call and Zero-Cost collars option contracts maturities 1 Half 2021 2 Half 2021 2021 Total Jet fuel risk Asian Calls Notional volume in gallons (thousands)* 7,280 — 7,280 Strike price agreed rate per gallon (U.S.dollars) ** US$ 1.90 — US$ 1.90 Approximate percentage of hedge (of expected consumption value) 6 % — % 3 % Jet fuel risk Zero-Cost collars Notional volume in gallons (thousands)* 7,556 — 7,556 Strike price agreed rate per gallon (U.S. dollars) ** US$ 1.23 / 1.93 US$ — US$ 1.23 / 1.93 Approximate percentage of hedge (of expected consumption value) 6 % — % 3 % All-in Approximate percentage of hedge (of expected consumption value) 12 % — % 6 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average Position as of December 31, 2019 Jet fuel Zero-Cost Collar collars option contracts maturities 1 Half 2020 2 Half 2020 2020 Total Jet fuel risk Zero-Cost collars Notional volume in gallons (thousands)* 34,480 22,164 56,644 Strike price agreed rate per gallon (U.S.dollars)** US$ / US$ / US$ / Approximate percentage of hedge (of expected consumption value) 25 % 15 % 20 % All-in Approximate percentage of hedge (of expected consumption value) 25 % 15 % 20 % * 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, 2020: Sensitivity of position as of December 31, 2020 effect on equity (U.S. dollars) US Gulf Coast Jet Fuel 54 spot level +5% +0.16M -5% -0.16M Please note this sensitivity was calculated with the net position delta of the portfolio, as change on the underlying price is small enough to be a good proxy. b) Foreign currency risk Though the 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 and non-derivative financial instruments. While most of the Company’s revenue is generated in Mexican pesos, 27% of its revenues came from operations in the United States of America and Central America for the year ended at December 31, 2020, (29% at December 31, 2019 and 32% at December 31, 2018) and U.S. dollar denominated collections accounted for 44%, 43% and 38%, of the Company’s total collections in 2020, 2019 and 2018, 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, 2020 and 2019 is as set forth below: Thousands of U.S. dollars 2020 2019 Assets: Cash and cash equivalents US$ 495,612 US$ 373,099 Other accounts receivable, net 39,997 23,620 Guarantee deposits 479,566 437,499 Derivative financial instruments 10 7,088 Total assets US$ 1,015,185 US$ 841,306 Liabilities: Financial debt (Note 5) US$ 183,806 US$ 176,927 Lease liabilities 2,334,153 2,263,849 Suppliers 174,553 76,471 Other taxes and fees payable 16,105 22,486 Derivative financial instruments 484 — Total liabilities 2,709,101 2,539,733 Net foreign currency position US$ (1,693,916) US$ (1,698,427) At April 29, 2021, date of issuance of these financial statements, the exchange rate was Ps.19.9785 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. As of December 31, 2020, the Company did not enter foreign exchange rate derivatives financial instruments. As of December 31, 2019, the Company did not enter foreign exchange rate derivatives financial instruments. All the Company’s remaining position in FX plain vanilla forwards matured throughout the first quarter of 2019 (January). During the year ended December 31, 2018, the Company entered into foreign currency forward contracts in U.S. dollars to hedge approximately, 20% of its future 12 and 6 months of aircraft rental expenses. A portion of the Company’s foreign currency forwards position matured throughout the fourth quarter of 2018 (November & December). As of December 31, 2018, the unrealized gains of Ps.14,241, respectively relating to the foreign currency forward contracts is included in OCI. For the years ended December 31, 2019 and 2018, the net gains (loss) on the foreign currency forward contracts were Ps. 4,199 and Ps.52,516, respectively, which were recognized as part of rental expense in the consolidated statements of operations. Foreign currency sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities excluding the assets and liabilities associated with non-derivative financial instruments. The Company’s exposure to foreign currency changes for all other currencies is not material. Change in Effect on profit USD rate before tax 2020 +5 % Ps. (253,763) -5 % 253,763 2019 +5 % Ps. (155,593) -5 % 155,593 The movement in the pre-tax effect is a result of a change in the fair value of assets and liabilities denominated in US dollars, where the functional currency of the entity is a currency other than US dollars. i) Hedging relationships designating non-derivative financial instruments as hedging instruments for Foreign Exchange (FX) risk Regarding the foreign currency risk effective since January 1 st , 2019, the Company implemented two hedging strategies associated to forecasted FX exposures, by using non-derivatives financial assets and liabilities denominated in a non-functional currency (the USD in this case) as hedging instruments. In the first FX hedging strategy, the Company designated a hedge to mitigate the variability in FX fluctuation denominated in USD associated to forecasted revenues by using a portion of USD denominated financial liabilities associated to a portfolio of leasing liabilities up until the terms of the remaining leasing arrangements. The lease liability amount designated as a hedging item during 2019 was USD$2.1 billion. The outstanding USD balance designated under this hedging strategy as of December 31, 2020 and 2019 amount to US$1.5 billion and USD$1.7 billion respectively, represented by recognized leasing liabilities, which have been designated as hedging instruments tagged to USD denominated forecasted revenues over the remaining lease term. The second FX strategy consists on designating a hedging relationship by using a portion of USD denominated non-derivative financial assets as hedging instruments, to mitigate the FX variability (MXN/USD) contractually included as a component in the purchase of a portion of future Jet Fuel consumption. For this strategy designated in 2019, a portion of the Jet Fuel consumption over the two following years has been designated as hedged item; while the hedging instrument is represented by USD denominated recognized assets, including guaranteed deposits and cash and cash equivalents equivalent to USD$410 million, which represent a portion of the financial assets denominated in USD. The outstanding USD balance designated under this hedging strategy as of December 31, 2020 and 2019 amount to US$60.5 million and USD$166.7 million respectively, which does represent a portion of the recognized financial assets. Since the hedged items on for both hedging strategies are targeted at mitigating the cash flow variability of highly expected forecasted transactions, these are represented by multiple hedging relationships which do follow the Cash Flow Hedge Accounting Model. The effective portion of the hedging instrument’s changes in fair value, are taken to the hedge reserve within the OCI, presented as a separate caption within the Company’s Stakeholders Equity, which is in accordance with IFRS 9 criteria. The amounts recorded in OCI are recycled to profit and loss on a time basis as corresponding USD denominated Income and/or Jet Fuel consumptions do also impact the Company’s operating margin and are presented as adjustments to both operating income and expense, with respect to each FX hedging strategy in a timely matter, as USD denominated income and jet fuel consumption are recognized within operating earnings, hence reflecting a portion of both operating income and expenses amounts, net of both FX Hedging activities. During the year ended December 31, 2020, the Company determined that a portion of its non-derivative financial instruments designated as hedge accounting were no longer effective, since the jet fuel consumption was lower than anticipated as a result of the adverse effect of COVID-19. The impact of this adjustment in 2020 was a benefit of Ps.111 million in the Company´s net loss for the period. This amount was reclassified from other comprehensive income to comprehensive financial result. Further, Ps.94 million were also reclassified from other comprehensive income to operating expenses during 2020 as a result of the completion of a forecasted transaction designated in a hedge relationship. 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 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. The Irrevocable Trust number CIB/3249, whose trustor is the Company, entered a cap to mitigate the risk due to interest rate increases on the CEBUR coupon payments. The floating rate coupons reference to TIIE 28 are limited under the cap to 10% on the reference rate for the life of the CEBUR and have the same amortization schedule. Thus, the cash flows of the CEBUR are perfectly matched by the hedging instrument. The cap start date was July 19, 2019, and the maturity date is June 20, 2024; consisting of 59 caplets with the same specifications as the CEBUR coupons for reference rate determination, coupon term, and fair value. At December 31, 2020 and December 31, 2019, the Company’s outstanding hedging contracts in the form of interest rate caps with notional amount of Ps.1.5 billion had fair values of Ps.326 and Ps.2,695, respectively, recorded in assets. During the years ended December 31, 2018, the Company did not have any outstanding interest rate derivatives. 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, lease liabilities and derivative contracts. The Company’s off-balance sheet exposure represents the future obligations related to 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, 2020 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 1,096,543 Ps. 2,554,069 Ps. 3,650,612 Short-term working capital facilities (Note 5) 200,000 — 200,000 Asset backed trust note (Note 5) 250,000 1,250,000 1,500,000 Derivative financial instruments: Jet fuel Asian Zero-Cost collars options contracts 9,657 — 9,657 Lease liabilities: Aircraft, engines, land and buildings leases 6,484,092 37,646,450 44,130,542 Aircraft and engine lease return obligation 86,801 2,417,683 2,504,484 Total Ps. 8,127,093 Ps. 43,868,202 Ps. 51,995,295 December 31, 2019 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 1,855,956 Ps. 1,452,553 Ps. 3,308,509 Short-term working capital facilities (Note 5) 200,000 — 200,000 Asset backed trust note (Note 5) — 1,500,000 1,500,000 Lease liabilities: Aircraft, engines, land and buildings leases 4,720,505 35,796,540 40,517,045 Aircraft and engine lease return obligation 383,093 1,469,595 1,852,688 Total Ps. 7,159,554 Ps. 40,218,688 Ps. 47,378,242 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, 2020, 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. g) Capital management Management believes that the resources available to the Company are enough for its present requirements and will be sufficient to meet its anticipated requirements for capital expenditures and other cash requirements for the 2020 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, 2020 and 2019. 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, 2020
Fair value measurements
Fair value measurements	4. Fair value measurements The only financial assets and liabilities measured at fair value after initial recognition 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 2020 2019 2020 2019 Assets Derivative financial instruments Ps. 532 Ps. 136,262 Ps. 532 Ps. 136,262 Liabilities Financial debt (5,350,612) (5,008,509) (5,527,332) (5,194,316) Derivative financial instruments (9,657) — (9,657) — Total Ps. (5,359,737) Ps. (4,872,247) Ps. (5,536,457) Ps. (5,058,054) The following table summarizes the fair value measurements at December 31, 2020: 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. 206 Ps. — Ps. 206 Interest rate Caps — 326 — 326 Liabilities Derivatives financial instruments:Jet fuel Asian Zero-Cost collars options contracts* — (9,657) — (9,657) Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (5,527,332) — (5,527,332) Net Ps. — Ps. (5,536,457) Ps. — Ps. (5,536,457) * 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, 2019: 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 Zero-Cost collar options contracts* Ps. — Ps. 133,567 Ps. — Ps. 133,567 Interest rate Caps — 2,695 — 2,695 Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (5,194,316) — (5,194,316) Net Ps. — Ps. (5,058,054) Ps. — Ps. (5,058,054) * 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) gain from derivatives financial instruments recognized in the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018: Instrument Financial statements line 2020 2019 2018 Jet fuel Asian call options contracts Fuel Ps. (20,646) Ps. (61,069) Ps. 402,493 Jet fuel Zero-Cost collars contracts Fuel (835,884) (9,477) — Jet fuel Asian call options contracts Finance cost (12,981) — — Jet fuel Zero-Cost collars contracts Finance cost (435,578) — — Foreign currency forward Aircraft and engine rent expenses — 4,199 52,516 Interest rate cap Finance cost (1,468) (1,282) — Total Ps. (1,306,557) Ps. (67,629) Ps. 455,009 The following table summarizes the net gain (loss) on CFH before taxes recognized in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2019 and 2018: Consolidated statements of other comprehensive (loss) income Financial Instrument statements line 2020 2019 2018 Jet fuel Asian call options contracts OCI Ps. (11,993) Ps. 11,148 Ps. (174,984) Jet fuel Zero cost collars OCI (143,224) 256,515 (122,948) Foreign currency contracts OCI — (14,241) 14,241 Interest rate cap OCI (900) (4,023) — Non derivative financial instruments OCI (1,591,569) 14,096 — Total Ps. (1,747,686) Ps. 263,495 Ps. (283,691) The exchange rates used to translate the above amounts to Mexican pesos at December 31, 2020, 2019 and 2018 were Ps.19.9487, Ps.18.8452 and Ps.19.6829, respectively, per U.S. dollar.

Financial assets and liabilitie

Financial assets and liabilities	12 Months Ended
	Dec. 31, 2020
Financial assets and liabilities
Financial assets and liabilities	5. Financial assets and liabilities At December 31, 2020 and 2019, 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 2020 2019 Derivative financial instruments designated as cash flow hedges (effective portion recognized within OCI) Jet fuel Asian call options Ps. 206 Ps. — Jet fuel Zero-Cost collars — 133,567 Interest rate cap 326 2,695 Total financial assets Ps. 532 Ps. 136,262 Presented on the consolidated statements of financial position as follows: Current Ps. 206 Ps. 133,567 Non-current Ps. 326 Ps. 2,695 b) Financial debt (i) At December 31, 2020 and 2019, the Company’s short-term and long-term debt consists of the following: 2020 2019 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 October 31, 2022, bearing annual interest rate at the three-month LIBOR plus a spread of 260 basis points. Ps. 3,650,612 Ps. 3,308,509 II. The Company issued in the Mexico market Asset backed trust notes (“CEBUR”), in Mexican pesos, maturing on June 20 th , 2024 bearing annual interest rate at TIIE 28 days plus 175 basis points. 1,500,000 1,459,871 III. In December 2019, the Company entered into a short-term working capital facility with Banco Sabadell S.A., Institución de Banca Multiple (“Sabadell”) in Mexican pesos, bearing annual interest rate at TIIE 28 days plus a 300 basis points. 200,000 200,000 IV. Amortized transaction costs (15,542) (22,472) V. Accrued interest and other financial cost 19,563 30,061 5,354,633 4,975,969 Less: Short-term maturities 1,558,884 2,086,017 Long-term Ps. 3,795,749 Ps. 2,889,952 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, 2020: 2021 2022 2023 2024 Total Santander/Bancomext Ps. 1,112,629 Ps. 2,554,069 Ps. — Ps. — Ps. 3,666,698 CEBUR 252,605 500,000 500,000 250,000 1,502,605 Banco Sabadell 200,872 — — — 200,872 Total Ps. 1,566,106 Ps. 3,054,069 Ps. 500,000 Ps. 250,000 Ps. 5,370,175 iii) Since 2011, the Company has financed the pre-delivery payments with Santander/Bancomext for the acquisition of its aircraft through a revolving financing facility. 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, 2020, the Company was not in compliance with the financial ratio, therefore, the Company requested a waiver to the banks. The company received a waiver dated October 23, 2020, for the covenant regarding the financial ratio for the PDP financing facility that included the third and fourth quarter of 2020 and the first and second quarter of 2021. The waiver was provided by both banks, Santander and Bancomext. At December 31, 2019, 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 S.A.S. (“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 (CI Banco, S.A. (previously Deutsche Bank México, S.A. Trust 1710 and 1711)). At December 31, 2020, the Company has available credit lines totaling Ps.9,256,978 of which Ps.6,851,338 were related to financial debt (Ps.1,500,726 were undrawn) and Ps.2,405,640 were related to letters of credit (Ps.214,012 were undrawn). At December 31, 2019, the Company has available credit lines totaling Ps.9,005,008, of which Ps.6,649,358 were related to financial debt (Ps.1,640,849 were undrawn) and Ps.2,355,650 were related to letters of credit (Ps.86,066 were undrawn). On June 20, 2019, the Company, through its subsidiary Concesionaria issued 15,000,000 asset backed trust notes under the ticket VOLARCB 19 for the amount of Ps.1.5 billion Mexican pesos through the Irrevocable Trust number CIB/3249 created by Concesionaria. The issuance amount is part of a program approved by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) for an amount of up to Ps.3.0 billion Mexican pesos. The notes have a five year maturity annual reductions of Ps.250,000, Ps.500,000, Ps.500,000 and Ps.250,000 in 2021, 2022, 2023 and 2024, respectively, with a floating one-month coupon rate referenced to TIIE 28 plus with a 175 basis point spread. The notes start amortizing at the end of the second year. The asset backed trust notes structure operate on specific rules and provide a DSCR “Debt Service Coverage Ratio” which is computed by comparing the Mexican Peso collections over the previous six months to the next 6 months of debt service. In general, not retention of funds exists if the ratio exceeds 2.5 times. Amortization on the asset backed trust notes begins in July of 2021. In addition, early amortization applies if: i) An event of retention is not cover in a period of 90 consecutive days. ii) The debt service reserve account of any series maintains on deposit an amount less than the required balance of the debt service reserve account for a period that includes two or more consecutive payment methods. iii) Insolvency event of Concesionaria. In December 2019, the Company entered into a short-term working capital facility with Banco Sabadell S.A., Institución de Banca Multiple (“Sabadell”) in Mexican pesos, bearing annual interest rate at TIIE 28 days plus a 300 basis points. The “Sabadell” working capital facility has the following covenant: i) Joint obligor (Concesionaria) must represent 85% of EBITDA of the holding During the years ended on December 31, 2020 and 2019, we were in compliance with the covenants under the terms and conditions of the asset backed trusted notes and short-term working capital facilities. Changes in liabilities arising from financing activities At December 31, 2020 and 2019, the changes in liabilities from financing activities from the Company are summarized in the following table: Foreign Current vs non- January 1, Net cash Accrued exchange current December 31, 2020 Flows Interest movement reclassification Other 2020 Current interest-bearing loans and borrowings Ps. 2,086,017 Ps. (1,231,695) Ps. (10,498) Ps. (32,491) Ps. 747,551 Ps. - Ps. 1,558,884 Non-current interest -bearing loans and borrowings 2,889,952 1,374,678 — 231,612 (747,551) 47,058 3,795,749 Total liabilities from financing activities Ps. 4,975,969 Ps. 142,983 Ps. (10,498) Ps. 199,121 Ps. - Ps. 47,058 Ps. 5,354,633 Current vs non- January 1, Net cash Accrued Foreign exchange current December 31, 2019 Flows Interest movement reclassification Other 2019 Current interest-bearing loans and borrowings Ps. 1,212,259 Ps. (633,609) Ps. 13,698 Ps. (41,173) Ps. 1,534,842 Ps. - Ps. 2,086,017 Non-current interest -bearing loans and borrowings 2,310,939 2,273,143 — (122,466) (1,534,842) (36,822) 2,889,952 Total liabilities from financing activities Ps. 3,523,198 Ps. 1,639,534 Ps. 13,698 Ps. (163,639) Ps. - Ps. (36,822) Ps. 4,975,969 c) Other financial liabilities 2020 2019 Derivative financial instruments designated as CFH (effective portion recognized within OCI): Zero-Cost Collar options Ps. 9,657 Ps. — Total financial liabilities Ps. 9,657 Ps. — Presented on the consolidated statements of financial position as follows: Current Ps. 9,657 Ps. — Non-current Ps. — Ps. —

Cash and cash equivalents

Cash and cash equivalents	12 Months Ended
	Dec. 31, 2020
Cash and cash equivalents
Cash and cash equivalents	6. Cash and cash equivalents An analysis of this caption is as follows: 2020 2019 Cash in banks Ps. 6,907,295 Ps. 4,612,927 Short-term investments 3,068,618 3,231,125 Cash on hand 36,432 44,880 Restricted funds held in trust related to debt service reserves 91,040 91,040 Total cash and cash equivalents Ps. 10,103,385 Ps. 7,979,972 As of December 31, 2020 and 2019, the Company recorded a portion of advance ticket sales by an amount of Ps.91,040 and Ps.91,040, respectively, as a restricted fund (Note 1e). The restricted funds held in Trust are used to constitute the debt service reserves and cannot be used for purposes other than those established in the contract of the Trust.

Related parties

Related parties	12 Months Ended
	Dec. 31, 2020
Related parties
Related parties	7. Related parties a) An analysis of balances due from/to related parties at December 31, 2020 and 2019 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 2020 2019 Terms Due from: Frontier Airlines Inc. (“Frontier”) Code-share USA Ps. 72,629 Ps. 23,442 30 days Ps. 72,629 Ps. 23,442 Due to: Grupo Aeroportuario del Centro Norte (“OMA”) Airport Services Mexico Ps. 80,681 Ps. — 30 days Aeromantenimiento, S.A. (“Aeroman”) Aircraft and engine Mexico/El Salvador 39,284 1,474 30 days Chevez, Ruiz, Zamarripa y Cía., S.C. Professional fees Mexico 4,823 — 30 days Mijares, Angoitia, Cortés y Fuentes, S.C. Professional fees Mexico 166 996 30 days Frontier Airlines Inc. (“Frontier”) Code-share USA 39 16,246 30 days One Link, S.A. de C.V. (“One Link”) Call center fees El Salvador — 39,838 30 days Ps. 124,993 Ps. 58,554 b) During the years ended December 31, 2020, 2019 and 2018, the Company had the following transactions with related parties: Related party transactions Country of origin 2020 2019 2018 Revenues: Transactions with affiliates Frontier Airlines Inc Code-share USA Ps. 148,964 Ps. 208,968 Ps. 8,358 Expenses: Transactions with affiliates Aeromantenimiento, S.A. Aircraft and engine maintenance Mexico/El Salvador Ps. 239,118 Ps. 201,624 Ps. 341,726 Technical support Mexico/El Salvador 3,945 5,815 4,796 Onelink, S.A. de C.V. Call center fees Mexico/El Salvador 73,167 37,026 — Grupo Aeroportuario del Centro Norte Airport services Mexico 32,193 — — Mijares, Angoitia, Cortés y Fuentes, S.C. Professional fees Mexico 5,582 1,321 1,672 Chevez, Ruiz, Zamarripa y Cía, S.C. Professional fees Mexico 4,823 — — Servprot, S.A. de C.V. México 3,464 3,120 2,804 Human Capital International HCI, S.A. México — — 324 Frontier started having transactions with the Company in September 2018. As of December 31, 2020 and 2019, there have been no guarantees provided or received for any related party receivables or payables. For the years ended December 31, 2020 and 2019, 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 President and Chief Executive Officer, and Rodolfo Montemayor, who served as an alternate member of our board of directors until April 19, 2018, are shareholders of such company. Servprot provides security services for Mr. Beltranena and his family, as well as for Mr. Montemayor. As of December 31, 2020 and 2019 Servprot did not have net balance under this agreement. During the years ended December 31, 2020, 2019 and 2018 the Company expensed Ps.3,464, Ps.3,120 and Ps.2,804, respectively for this concept. d) Aeroman Aeroman is a related party, because Marco Baldocchi a member of the board of the Company’s board of directors is an alternate director 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 must 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-year term. As of December 31, 2020 and 2019, the balances due under the agreement with Aeroman were Ps.39,284 and Ps.1,474, respectively. The Company incurred expenses in aircraft, engine maintenance and technical support under this agreement of Ps.243,063, Ps.207,439 and Ps.346,522 for the years ended December 31, 2020, 2019 and 2018, respectively. e) Human Capital International Human Capital International HCI, S.A. de C.V. (“Human Capital International”), was a related party until April 19, 2018, because Rodolfo Montemayor Garza, a former member of the Company’s board of directors, is founder and chairman of the board of directors of Human Capital International. Human Capital International provided the Company with services regarding the selection and hiring of executives. As of December 31, 2018, Human Capital International did not have net balance under this agreement. For the year ended December 31, 2018, the Company recognized an expense under this agreement of Ps.324. f) OneLink Onelink, S.A. de C.V. (“Onelink”) was a related party until December 31, 2017, because Marco Baldocchi, a member of the board, was a director of Onelink. As of October 24, 2019 and until June 30, 2020 Onelink, Holdings, S.A. (“Onelink Holdings”) and its subsidiary Onelink were related parties, because Mr. Rodrigo Antonio Escobar Nottebohm, a former alternate board member of Onelink Holdings, became an alternate Director of the Company. Pursuant to this agreement, Onelink received calls from the customers to book flights and provides customers with information about fares, schedules and availability. As of December 31, 2020 and 2019, the account payable under this agreement was Ps.0 and Ps.39,838, respectively. For the years ended December 31, 2020, 2019 and 2018, Company recognized an expense under this agreement of Ps.73,167, Ps.37,026 and Ps.0, respectively. g) Mijares, Angoitia, Cortés y Fuentes Mijares, Angoitia, Cortés y Fuentes, S.C. (“MACF”) 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 the Company. As of December 31, 2020 and 2019, MACF, the balance due under the agreement was Ps.166 and Ps. 996, respectively. For the years ended December 31, 2020, 2019 and 2018, the Company expensed Ps.5,582, Ps.1,321 and Ps.1,672, respectively, for this concept. h) 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, 2020 and 2019, the account receivable under this agreement was Ps.72,629 and Ps.23,442, respectively. Additionally, as of December 31, 2020 and 2019, the account payable under this agreement was Ps.39 and Ps.16,246, respectively. For the year ended December 31, 2020, 2019 and 2018 the Company recognized revenue under this agreement of Ps.148,964, Ps.208,968 and Ps.8,358, respectively. i) Grupo Aeroportuario del Centro Norte (OMA) In April 22, 2020, Grupo Aeroportuario del Centro Norte (OMA) became a related party because Mrs. Guadalupe Phillips Margain is an independent member of the board of directors the Company and OMA. Mr. Ricardo Maldonado Yañez is also an independent member of the board of directors the Company and OMA. As of December 31, 2020, the account payable under this agreement was Ps.80,681. For the year ended December 31, 2020, the Company expensed Ps.32,193 for this concept. j) Chevez, Ruiz, Zamarripa y Cia, S.C. (Chevez) Chevez, Ruiz, Zamarripa y Cia, S.C. (Chevez) is a related party because Mr. José Luis Fernández Fernández is an independent member of the Board of Directors, as well as the chairman of the Audit and Corporate Governance Committee of the Company and non-managing partner of Chevez. Chevez provides tax advisory services to us. As of December 31, 2020, the balances due to Chevez under the tax advisory services provided to the Company were Ps.4,823. For the year ended December 31, 2020, the Company expensed Ps.4,823 for this concept. k) Directors and officers During the year ended December 31, 2020, 2019 and 2018, the chairman and the independent members of the Company’s board of directors received an aggregate compensation of approximately Ps.5,762, Ps.8,085 and Ps.7,178, respectively, and the rest of the directors received a compensation of Ps.3,692, Ps.4,367 and Ps.5,217, respectively. During the years ended December 31, 2020, 2019 and 2018, all the Company’s senior managers received an aggregate compensation of short and long-term benefits of Ps.253,681, Ps.237,846 and Ps.180,001, respectively, these amounts were recognized in salaries and benefits in the consolidated statement of operations. For the years ended December 31, 2020, 2019 and 2018 the cost of the share-based payments transactions (MIP and LTIP) were Ps.75,040, Ps.49,659 and Ps.19,980, respectively. The cost (benefit) of the cash-settled payments transactions MIP II and SARs were Ps.105,303, Ps. 40,724 and Ps.(5,238), respectively (Note 17). The Company has a 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, 2020, 2019 and 2018, the Company recorded a provision in the amount of Ps.0, Ps.80,634 and Ps.50,000, respectively.

Other accounts receivable, net

Other accounts receivable, net	12 Months Ended
	Dec. 31, 2020
Other accounts receivable, net
Other accounts receivable, net	8. Other accounts receivable, net An analysis of other accounts receivable at December 31, 2020 and 2019, is detailed below: 2020 2019 Current: Credit cards Ps. 231,260 Ps. 389,634 Benefits from suppliers 105,947 26,989 Other accounts receivable 87,204 189,904 Other points of sales 67,315 102,002 Cargo clients 45,201 46,600 Employees 36,287 29,681 Travel agencies and insurance commissions 16,099 76,975 Marketing services receivable 4,020 7,024 Airport services 15 42,894 Affinity credit card — 49,040 Settlement receivable — 2,422 Insurance claims — 143 593,348 963,308 Allowance for credit losses (32,708) (40,308) Ps. 560,640 Ps. 923,000 Accounts receivable have the following aging: 2020 2020 Total 2019 2019 Total Days Impaired Not impaired 2020 Impaired Not impaired 2019 0–30 Ps. 4,090 Ps. 486,001 Ps. 490,091 Ps. 5,804 Ps. 722,651 Ps. 728,455 31–60 — 13,872 13,872 — 64,983 64,983 61–90 — 6,081 6,081 — 19,274 19,274 91–120 28,618 54,686 83,304 34,504 116,092 150,596 Ps. 32,708 Ps. 560,640 Ps. 593,348 Ps. 40,308 Ps. 923,000 Ps. 963,308 The movement in the allowance for credit losses from January 1, 2018 to December 31, 2020 is as follows: Balance as of January 1st, 2018 Ps. (17,809) Write-offs 17,126 Increase in allowance (10,621) Balance as of December 31, 2018 (11,304) Write-offs 11,389 Increase in allowance (40,393) Balance as of December 31, 2019 (40,308) Write-offs 21,264 Increase in allowance (13,664) Balance as of December 31, 2020 Ps. (32,708)

Inventories

Inventories	12 Months Ended
	Dec. 31, 2020
Inventories
Inventories	9. Inventories An analysis of inventories on December 31, 2020 and 2019 is as follows: 2020 2019 Spare parts and accessories of flight equipment Ps. 271,454 Ps. 294,390 Miscellaneous supplies 7,505 7,518 Ps. 278,959 Ps. 301,908 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, 2020, 2019 and 2018, the amount of consumption of inventories, recorded as an operating expense as part of maintenance expense was Ps.234,691, Ps.284,687 and Ps.290,206, respectively.

Prepaid expenses and other curr

Prepaid expenses and other current assets	12 Months Ended
	Dec. 31, 2020
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, 2020 and 2019 is as follows: 2020 2019 Flight credits Ps. 389,927 Ps. — Advances to suppliers 163,044 283,340 Sales commission to travel agencies (Note 1d) 151,342 84,239 Other prepaid expenses 81,803 115,054 Prepaid insurance 64,309 88,941 Advances to components suppliers — 209,557 Ps. 850,425 Ps. 781,131

Guarantee deposits

Guarantee deposits	12 Months Ended
	Dec. 31, 2020
Guarantee deposits
Guarantee deposits	11. Guarantee deposits An analysis of this caption on December 31, 2020 and 2019 is as follows: 2020 2019 Current asset: Credit letters deposits Ps. 829,918 Ps. — Aircraft maintenance deposits paid to lessors (Note 1j) 279,390 576,505 Deposits for rental of flight equipment 23,584 — Other guarantee deposits 9,064 23,822 1,141,956 600,327 Non-current asset: Aircraft maintenance deposits paid to lessors (Note 1j) 7,641,544 7,047,360 Deposits for rental of flight equipment 741,871 557,530 Other guarantee deposits 41,323 39,531 8,424,738 7,644,421 Ps. 9,566,694 Ps. 8,244,748

Rotable spare parts, furniture

Rotable spare parts, furniture and equipment, net	12 Months Ended
	Dec. 31, 2020
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 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 Leasehold improvements to flight equipment Ps. 5,092,049 Ps. 4,220,672 Ps. (3,354,166) Ps. (2,679,884) Ps. 1,737,883 Ps. 1,540,788 Pre-delivery payments* 4,920,126 4,507,770 — — 4,920,126 4,507,770 Flight equipment 1,689,473 1,287,102 (1,223,560) (553,852) 465,913 733,250 Construction and improvements in process 53,545 474,240 — — 53,545 474,240 Constructions and improvements 175,407 172,460 (148,391) (131,510) 27,016 40,950 Computer equipment 49,945 47,566 (42,126) (34,495) 7,819 13,071 Workshop tools 27,727 26,875 (24,398) (22,023) 3,329 4,852 Electric power equipment 20,448 20,412 (12,773) (11,400) 7,675 9,012 Communications equipment 14,803 14,099 (9,038) (8,322) 5,765 5,777 Workshop machinery and equipment 20,574 16,301 (7,641) (6,092) 12,933 10,209 Motorized transport equipment platform 15,247 15,026 (7,924) (5,392) 7,323 9,634 Service carts on board 9,216 7,675 (6,112) (5,554) 3,104 2,121 Office furniture and equipment 67,035 70,709 (35,309) (34,049) 31,726 36,660 Allowance for obsolescence (3,000) (3,000) — — (3,000) (3,000) Total Ps. 12,152,595 Ps. 10,877,907 Ps. (4,871,438) Ps. (3,492,573) Ps. 7,281,157 Ps. 7,385,334 * During the years ended December 31, 2020, 2019 and 2018, the Company capitalized borrowing costs of Ps.384,038, Ps.456,313 and Ps.357,920, respectively. The amount of this line is net of disposals of capitalized borrowing costs related to sale and leaseback transactions of Ps.401,862, Ps.328,571 and Ps.242,678, respectively. Motorized Workshop Constructions transport machinery Service Construction and Leasehold Flight and Computer Office furniture Electric power Workshop equipment Communications and carts on Allowance for Pre-delivery improvements improvements to equipment improvements equipment and equipment equipment Tools platform equipment equipment board obsolescence payments in process flight equipment Total Net book amount as of December 31, 2018 Ps. Ps. 15,235 Ps. 16,547 Ps. 38,306 Ps. 5,122 Ps. 3,369 Ps. 446 Ps. 4,911 Ps. 4,481 Ps. 126 Ps. — Ps. 3,672,090 Ps. 142,738 Ps. 1,214,589 Ps. 5,782,282 Additions 692,186 5,596 1,730 1,461 2,487 3,137 — 355 4,278 2,273 (3,000) 1,412,790 525,556 661,954 3,310,803 Disposals and transfers (538,370) — (131) (10) — — — (2) (35) — — (704,852) (3,957) — (1,247,357) Borrowing costs, net* — — — — — — — — — — — 127,742 — — 127,742 Other movements — 34,840 1,999 2,757 2,487 284 9,529 1,446 2,529 — — — (190,097) 133,939 (287) Depreciation (84,888) (14,721) (7,074) (5,854) (1,084) (1,938) (341) (933) (1,044) (278) — — — (469,694) (587,849) As of December 31, 2019 733,250 40,950 13,071 36,660 9,012 4,852 9,634 5,777 10,209 2,121 (3,000) 4,507,770 474,240 1,540,788 7,385,334 Cost 1,287,102 172,460 47,566 70,709 20,412 26,875 15,026 14,099 16,301 7,675 (3,000) 4,507,770 474,240 4,220,672 10,877,907 Accumulated depreciation (553,852) (131,510) (34,495) (34,049) (11,400) (22,023) (5,392) (8,322) (6,092) (5,554) — — — (2,679,884) (3,492,573) Net book amount as of December 31, 2019 733,250 40,950 13,071 36,660 9,012 4,852 9,634 5,777 10,209 2,121 (3,000) 4,507,770 474,240 1,540,788 7,385,334 Additions 668,376 128 1,648 733 — 851 — — — 1,541 — 2,185,902 176,607 646,219 3,682,005 Disposals and transfers (861,761) — — — — — — — — — — (1,755,724) (354,146) — (2,971,631) Borrowing costs, net* — — — — — — — — — — — (17,822) — — (17,822) Other movements — 2,317 713 101 36 — 222 1,083 4,273 — — — (243,156) 235,509 1,098 Depreciation (73,952) (16,379) (7,613) (5,768) (1,373) (2,374) (2,533) (1,095) (1,549) (558) — — — (684,633) (797,827) As of December 31, 2020 465,913 27,016 7,819 31,726 7,675 3,329 7,323 5,765 12,933 3,104 (3,000) 4,920,126 53,545 1,737,883 7,281,157 Cost 1,689,473 175,407 49,945 67,035 20,448 27,727 15,247 14,803 20,574 9,216 (3,000) 4,920,126 53,545 5,092,049 12,152,595 Accumulated depreciation (1,223,560) (148,391) (42,126) (35,309) (12,773) (24,398) (7,924) (9,038) (7,641) (6,112) — — — (3,354,166) (4,871,438) Net book amount as of December 31, 2020 Ps. 465,913 Ps. 27,016 Ps. 7,819 Ps. 31,726 Ps. 7,675 Ps. 3,329 Ps. 7,323 Ps. 5,765 Ps. 12,933 Ps. 3,104 Ps. (3,000) Ps. 4,920,126 Ps. 53,545 Ps. 1,737,883 Ps. 7,281,157 a) Depreciation expense for the years ended December 31, 2020, 2019 and 2018, was Ps.797,827, Ps.587,849 and Ps.427,756, 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 (“Current Engine Option Aircraft”) and 30 A320NEO. 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. Also, in this amendment Volaris used its rights on the Airbus Purchase Agreement to convert six A320NEO into A321NEO. In July 2020, we amended the agreement with Airbus to reschedule the 80 aircraft deliveries between 2023 and 2028. In October 2020, we amended the agreement with Airbus to reschedule the remaining 18 fleet deliveries between 2020 and 2022. 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 2022. 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 2022. 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, 2020, and 2019, the Company amortized a corresponding benefit from these credit notes of Ps.4,878 and Ps.4,878, respectively, which is recognized as an offset to maintenance expenses in the consolidated statements of operations. During the years ended December 31, 2020 and 2019, the amounts paid for aircraft and spare engine pre-delivery payments were of Ps.2,185,902 (US$102.7 million) and Ps.1,412,790 (US$75.0 million), respectively. The current purchase agreement with Airbus requires the Company to accept delivery of 96 Airbus A320 family aircraft during the following eight years (from January 2021 to October 2028). The agreement provides for the addition of 96 Aircraft to its fleet as follows: four in 2021, twelve in 2022, three in 2023, thirteen in 2024, fifteen in 2025, twenty-five in 2026, eleven in 2027 and thirteen in 2028. Commitments to acquisitions of property and equipment are disclosed in Note 23. During the years ended December 31, 2020, 2019 and 2018 the Company entered into aircraft and spare engines sale and leaseback transactions, resulting in a gain of Ps.710,522, Ps.284,759 and Ps.609,168, respectively, that was recorded under the caption other operating income in the consolidated statement of operations, only the amount of gains that relates to the rights transferred to the buyer-lessor. The rest of the gains are amortized under the lease term (Note 20). d) During December 2017, the Company entered into an updated 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 this 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, 2020, 2019 and 2018, the Company amortized a corresponding benefit from these credit notes of Ps.5,230 , Ps.5,230 and Ps.7,191, respectively, recognized as an offset to maintenance expenses in the consolidated statements of operations. e) On September 5, 2019, the Company acquired one previously leased A319 aircraft from the lessor, which was accounted for a cost for a total amount of Ps.392,076 (US$19,600). This transaction did not generate any gain or loses in our consolidated statements of operations. The Company identified the major components as separate parts at their respective cost. These major components of the aircraft are presented as part of the aircraft and depreciated over their useful life. During the month of December 2019, the Company sold the recently acquired aircraft engines in a sale and lease back transaction. As of December 31, 2020, the carry amount of the remaining owned aircraft and the depreciation was Ps.52,984 and Ps.5,946, respectively. As of December 31, 2019, the carry amount of the remaining owned aircraft and the depreciation was Ps.54,771 and Ps.1,787, respectively.

Intangible assets, net

Intangible assets, net	12 Months Ended
	Dec. 31, 2020
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 2020 2019 2020 2019 2020 2019 Software 1 – 4 Ps. 704,257 Ps. 579,360 Ps. (512,695) Ps. (411,963) Ps. 191,562 Ps. 167,397 Balance as of January 1st, 2019 Ps. 179,124 Additions 77,325 Disposals — Amortization (87,667) Exchange differences (1,385) Balance as of December 31, 2019 167,397 Additions 124,724 Disposals — Amortization (100,618) Exchange differences 59 Balance as of December 31, 2020 Ps. 191,562 Software amortization expense for the years ended December 31, 2020, 2019 and 2018 was Ps.100,618, Ps.87,667 and Ps.72,885, respectively. These amounts were recognized in depreciation and amortization in the consolidated statements of operations.

Leases

Leases	12 Months Ended
	Dec. 31, 2020
Leases
Leases	14. Leases The most significant leases are as follows: a) Aircraft and engine represent the Company´s most significant lease agreements. At December 31, 2020, the Company leases 85 aircraft (81 as of December 31, 2019) and 18 spare engines under lease agreements (14 as of December 31, 2019) that have maximum terms through 2033. These leases are generally guaranteed by either deposit in cash or letters of credits. Composition of the fleet and spare engines, leases*: Aircraft At December At December Type Model 31, 2020 31, 2019 A319 132 3 3 A319 133 2 4 A320 233 39 39 A320 232 1 2 A320NEO 271N 24 17 A321 231 10 10 A321NEO 271N 6 6 85 81 Engine spare At December At December Type Model 31, 2020 31, 2019 V2500 V2524-A5 2 2 V2500 V2527M-A5 3 3 V2500 V2527E-A5 5 3 V2500 V2527-A5 2 2 PW1100 PW1127G-JM 5 3 PW1100 PW1133G-JM 1 1 18 14 * 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, 2020, the Company added seven new leased aircraft to its fleet (seven A320 NEO´s acquired through sale and leaseback transactions under our existing Airbus purchase agreement). Also, the Company returned three aircraft to their respective lessors. During the year ended December 31, 2020, the Company also leased two NEO spare engines (based on the terms of the Pratt & Whitney purchase agreement FMP) and two CEO spare engines to its fleet. These four engines incorporated were subject to sale and leaseback transactions and their respective lease agreements were accounted as leases. During the year ended December 31, 2019, the Company added seven new leased aircraft to its fleet (three A320 NEO´s acquired through sale and leaseback transactions under our existing Airbus purchase agreement and four obtained directly from the lessor´s). Also, the Company extended the lease term of one spare engine (effective from 2019) and returned two aircraft to their respective lessors. All the aircraft incorporated through the lessor´s aircraft order book was not subject to sale and leaseback transactions. During the year ended December 31, 2019, the Company also leased two NEO spare engines (based on the terms of the Pratt & Whitney purchase agreement FMP) and two CEO spare engines to its fleet. These four engines incorporated were subject to sale and leaseback transactions and their respective lease agreements were accounted as leases. Additionally, during 2019 the Company extended the lease term of one spare engine (effective from November 2019). During the year ended December 31, 2018, the Company added ten new leased aircraft to its fleet (acquired three A320 NEO’s through sale leaseback transactions under our existing Airbus purchase agreement and seven obtained directly from the lessors). Also, the Company extended the lease term of 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 added two NEO spare engines to its fleet based on the terms of the Pratt & Whitney purchase agreement (FMP). These two engines incorporated were subject to sale and leaseback transactions. Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period: Spare engine Land and Aircraft leases leases building leases Total As at January 1st, 2019 Ps. 31,126,169 Ps. 579,696 Ps. 176,188 Ps. 31,882,053 Additions 6,676,492 230,200 42,992 6,949,684 Depreciation on right of use assets (4,490,572) (132,698) (79,701) (4,702,971) As at December 31, 2019 33,312,089 677,198 139,479 34,128,766 Additions 4,876,071 362,081 15,222 5,253,374 Disposals (17,742) — — (17,742) Foreign exchange effect — — 795 795 Depreciation on right of use assets (4,763,928) (210,079) (74,969) (5,048,976) As at December 31, 2020 Ps. 33,406,490 Ps. 829,200 Ps. 80,527 Ps. 34,316,217 Set out below are the carrying amounts of lease liabilities and the movements during the period: 2020 2019 As at January 1 st Ps. 40,517,045 Ps. 39,565,146 Additions 5,572,764 7,186,613 Disposals (231,566) — Accretion of interest 2,218,982 2,037,540 Foreign exchange effect 2,163,886 (1,772,452) Payments (6,110,569) (6,499,802) As at 31 December Ps. 44,130,542 Ps. 40,517,045 Current Ps. 6,484,092 Ps. 4,720,505 Non-current Ps. 37,646,450 Ps. The Company applied practical expedients to leases from applying IFRS 16 guidance on lease modification accounting for rent concessions for those lease modifications arising as a direct result of COVID-19. The net impact on the consolidated statements of operations for 2020 was Ps.190,811, which reflects the changes to lease payments that arose from such concessions. The following are the amounts recognized in profit or loss: As of December As of December As of December 31, 2020 31, 2019 31, 2018 Depreciation of right-of-use assets Ps. (5,048,976) Ps. (4,702,971) Ps. (4,043,691) Interest expense on lease liabilities and aircraft and engine lease return obligation (Note 21) (2,350,250) (2,128,162) (1,755,978) Aircraft and engine variable expenses (1,845,254) (961,657) (956,010) Total amount recognized in profit or loss Ps. (9,244,480) Ps. (7,792,790) Ps. (6,755,679) The Company had total cash outflows for leases of Ps.6,110,569 in 2020 (Ps.6,499,802 in 2019 and Ps.5,710,907 in 2018). i) Return obligations 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 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 variable lease expenses 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, 2020, 2019 and 2018, the Company expensed as supplemental rent Ps.1,428,179, Ps.680,964 and Ps.659,106, respectively. 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.

Accrued liabilities

Accrued liabilities	12 Months Ended
	Dec. 31, 2020
Accrued liabilities
Accrued liabilities	15. Accrued liabilities a) An analysis of current accrued liabilities at December 31, 2020 and 2019 is as follows: 2020 2019 Fuel and traffic accrued expenses Ps. 1,285,931 Ps. 1,507,659 Salaries and benefits 337,467 296,829 Sales, marketing and distribution accrued expenses 179,342 230,935 Maintenance deposits 174,549 132,085 Accrued administrative expenses 122,729 81,124 Maintenance and aircraft parts accrued expenses 98,942 120,254 Others 86,374 48,526 Information and communication accrued expenses 35,359 67,808 Deferred revenue from V Club membership 20,830 35,465 Supplier services agreement 10,634 10,634 Benefits from suppliers 3,888 — Advances from travel agencies 242 542 Ps. 2,356,287 Ps. 2,531,861 b) Non-current accrued liabilities at December 31, 2020 and 2019 is as follows: 2020 2019 Supplier services agreement Ps. 45,270 Ps. 55,905 Benefits from suppliers 16,847 19,439 Other 4,581 15,452 Ps. 66,698 Ps. 90,796 c) An analysis of other liabilities is as follows: Balance as of Balance as of January 1, Increase for December 31, 2020 the year Payments 2020 Aircraft and engine lease return obligation Ps. 1,852,688 Ps. 2,126,401 Ps. (1,474,605) Ps. 2,504,484 Guarantee deposit — 250,000 — 250,000 Employee profit sharing (Note 16) 24,097 20,810 (30,490) 14,417 Ps. 1,876,785 Ps. 2,397,211 Ps. (1,505,095) Ps. 2,768,901 Current maturities Ps. 101,218 Non-current Ps. 2,667,683 Balance as of Balance as of January 1, Increase for December 31, 2019 the year Payments 2019 Aircraft and engine lease return obligation Ps. 1,831,045 Ps. 725,506 Ps. (703,863) Ps. 1,852,688 Employee profit sharing (Note 16) 14,984 22,134 (13,021) 24,097 Ps. 1,846,029 Ps. 747,640 Ps. (716,884) Ps. 1,876,785 Current maturities Ps. 407,190 Non-current Ps. 1,469,595 During the years ended December 31, 2020 and 2019 no cancellations or write-offs related to these liabilities were recorded. On September 12, 2012, the Company entered into a cobrand credit card agreement with Banco Invex, S.A., Institución de Banca Múltiple, Invex, Grupo Financiero Invex “Invex”. On June 26, 2020, the Company signed a new amendment with Invex. Through this agreement, Invex pays certain commissions to Volaris related to the cobrand credit card and Invex’s clients receive vouchers to be redeemed in different Volaris services under certain conditions. A portion of the voucher cost is paid by Volaris and the remaining amount by Invex. During the year ended December 31, 2020, Invex prepaid certain commissions to Volaris, which were recorded as part of other liabilities.

Employee benefits

Employee benefits	12 Months Ended
	Dec. 31, 2020
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, 2020, 2019 and 2018, are as follows: 2020 2019 2018 Analysis of net period cost: Current service cost Ps. 8,449 Ps. 8,214 Ps. 4,977 Interest cost on benefit obligation 2,630 1,872 1,424 Net period cost Ps. 11,079 Ps. 10,086 Ps. 6,401 Changes in the defined benefit obligation are as follows: 2020 2019 Defined benefit obligation at January 1, Ps. 38,151 Ps. 18,153 Net period cost charged to profit or loss: Current service cost 8,449 8,214 Interest cost on benefit obligation 2,630 1,872 Remeasurement losses in other comprehensive income: Actuarial changes arising from changes in assumptions 2,651 10,192 Payments made (1,254) (225) Defined benefit obligation at December 31, Ps. 50,627 Ps. 38,206 The significant assumptions used in the computation of the seniority premium obligations are shown below: 2020 2019 2018 Financial: Discount rate 7.04 % 7.18 % 9.91 % Expected rate of salary increases 5.50 % 5.50 % 5.65 % Annual increase in minimum salary 4.00 % 4.00 % 4.15 % Biometric: Mortality (1) EMSSA 09, CEPAL* 2010 EL SALVADOR, CEPAL*2010 COSTA RICA EMSSA 09, CEPAL* 2010 EL SALVADOR, CEPAL*2010 COSTA RICA EMSSA 09 Disability (2) IMSS-97 IMSS-97 IMSS-97 (1) Mexican Experience of social security (EMSSA), Economic Commission for Latin America and the Caribbean (CEPAL for its Spanish acronym). (2) Mexican Experience of Instituto Mexicano del Seguro Social (IMSS). Accruals for short-term employee benefits at December 31, 2020 and 2019, respectively, are as follows: 2020 2019 Employee profit-sharing (Note 15c) Ps. 14,417 Ps. 24,097 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, 2020
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 2020, 2019 and 2018, the 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.92,132 (Ps.59,899 net of withheld taxes), Ps.86,772 (Ps.56,407 net of withheld taxes) and Ps.63,961 (Ps.41,590 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, 2020, 2019 and 2018, 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 January 1st, 2018 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 * Purchased during the year 2,694,600 Granted during the year — Exercised/vested during the year (959,614) Forfeited during the year (173,090) Outstanding as of December 31, 2019 5,115,191 Purchased during the year 3,159,763 Granted during the year — Exercised/vested during the year (2,142,426) Forfeited during the year (327,217) Outstanding as of December 31, 2020 5,805,311 * * These shares are presented as treasury shares in the consolidated statement of financial position as of December 31, 2020, 2019 and 2018. The vesting period of the shares granted under the Company’s share purchase plans is as follows: Number of Series A shares Vesting period 2,979,412 November 2020 – 2021 1,819,440 November 2021 – 2022 1,006,459 November 2022 – 2023 5,805,311 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, 2020, 2019 and 2018, the compensation expense recorded in the consolidated statement of operations amounted to Ps.75,040, Ps.49,659 and Ps.19,980, 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 2020, 2019 and 2018, 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, 2020, 2019 and 2018, were (327,217), (173,090) and (121,451), respectively. - 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. Fair value of the SARs was measured at each reporting date. The carrying amount of the liability relating to the SARs as of December 31, 2019 and 2018 were Ps.1,901 and Ps.537, respectively. The retention plan granted in previous periods expired in November 2020. 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, 2020, 2019 and 2018, the Company recorded a expense (benefit) of Ps.(1,901), Ps.2,964 and Ps.(186), respectively, in the consolidated statement of operations. The fair value of these SARs was 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. During the years ended December 31, 2019, the Company made a cash payment to key employees related to the SARs plan in the amount of Ps.2,395. 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 must 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 2019, the key employees exercised 2,780,000 Series A shares. As a result, the key employees paid to the Management Trust Ps.14,773 corresponding to the exercised shares for the year ended December 31, 2019. During 2020, there were no exercised shares under the MIP. 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, 2018 Ps. 10,433,981 Ps. 5.31 Ps. 55,441 Granted during the year — — — Forfeited during the year — — — Exercised during the year (2,780,000) 5.31 (14,773) Outstanding as of December 31, 2019 7,653,981 5.31 40,668 Granted during the year — — — Forfeited during the year — — — Exercised during the year — — — Outstanding as of December 31, 2020 Ps. 7,653,981 Ps. 5.31 Ps. 40,668 At December 31, 2020 and 2019, 7,653,981 and 7,653,981 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, 2020 and 2019 was Ps.177,770 and Ps.70,567, 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, 2020 and 2019, the Company recorded a (benefit) expense of Ps.107,204 and Ps. 37,760, respectively, in the consolidated statement of operations. No SARs were exercised during 2020. The vesting schedule is summarized in the table below: Number of SARs Vesting date 3,391,020 February 2021 3,391,020 * * Includes forfeited SARs of 0,0 and 1,563,520, for the years ended December 31, 2020, 2019 and 2018, respectively. The expense (benefit) recognized for the Company’s retention plans during the year is shown in the following table: 2020 2019 2018 Expense (benefit) arising from cash-settled share-based payments transactions Ps. 105,303 Ps. 40,724 Ps. (5,238) Expense arising from equity-settled share-based payments transactions 75,040 49,659 19,980 Total expense arising from share-based payments transactions Ps. 180,343 Ps. 90,383 Ps. 14,742 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.9.74, Ps.16.80 and Ps.16.12 for the years ended 2020, 2019 and 2018, respectively, 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, 2020 and 2019 available to be exercised is 5,233,693 and 2,072,344, respectively.

Equity

Equity	12 Months Ended
	Dec. 31, 2020
Equity
Equity	18. Equity As of December 31, 2020, the total number of the Company’s authorized shares was 1,165,976,677; 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 1,077,914,326 1,077,924,804 Series B shares (1) 13,702 88,038,171 88,051,873 24,180 1,165,952,497 1,165,976,677 Treasury shares (Note 17) — (19,020,202) (19,020,202) (1) 24,180 1,146,932,295 1,146,956,475 (1) The number of forfeited shares as of December 31, 2020 were 327,217, which are include in treasury shares. On December 11, 2020, Controladora Vuela Compañía de Aviación, S.A.B. de C.V announced the closing of an upsized primary follow-on equity offering in which the Company offered 134,000,000 of its Ordinary Participation Certificates (Certificados de Participación Ordinarios), or CPOs, in the form of American Depositary Shares, or ADSs, at a price to the public of USD11.25 per ADS in the United States and other countries outside of Mexico, pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “SEC”). In connection with the offering, the underwriters exercised their option to purchase up to 20,100,000 additional CPOs in the form of ADSs. Each ADS represents 10 CPOs and each CPO represents a financial interest in one Series A share of common stock of the Company. The Company currently intends to use the net proceeds of approximately USD164,419,000 (after the deduction of the underwriters´ commission and expenses payable by the Company) from the offering for general corporate purposes. The increase in capital stock amounts of Ps.3,272,832. As of December 31, 2019, the total number of the Company’s 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) — (15,136,057) (15,136,057) (1) 24,180 996,716,440 996,740,620 (1) The number of forfeited shares as of December 31, 2019 were 294,541, which are include in treasury shares. 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, 2020 and 2019, the Company did not declare any dividends. a) Earnings (loss) per share Basic earnings (loss) per share (“EPS or LPS”) amounts are calculated by dividing the net income (loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted EPS or LPS amounts are calculated by dividing the profit (loss) 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 earnings (loss) income per share for the years ended December 31, 2020, 2019 and 2018. At December 31, 2018 2020 2019 (Adjusted) Net (loss) income for the period Ps. (4,293,791) Ps. 2,639,063 Ps. (942,882) Weighted average number of shares outstanding (in thousands): Basic 1,021,561 1,011,877 1,011,877 Diluted 1,021,561 1,011,877 1,011,877 EPS - LPS: Basic (4.203) 2.608 (0.932) Diluted (4.203) 2.608 (0.932) 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. b) 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, 2020, 2019 and 2018, the Company’s legal reserve was Ps.291,178 or 8.5%, 9.8% and 9.8% respectively of our capital stock. For the years ended December 31, 2020, 2019 and 2018, we did not allocate any amount to our legal reserve fund. 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, 2020, 2019 and 2018 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, 2020
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 Adjusted 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 2020 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 2020, 2019 and 2018 in Guatemala, Costa Rica and El Salvador are 25%, 30% and 30% respectively. b) For the years ended December 31, 2020, 2019 and 2018, the Company reported on a consolidated basis taxable income of Ps.302,029, Ps.938,304 and Ps.777,513, 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 Adjusted based on inflation. c) An analysis of consolidated income tax expense for the years ended December 31, 2020, 2019 and 2018 is as follows: Consolidated statements of operations 2020 2019 2018 Current year income tax expense Ps. (90,609) Ps. (281,491) Ps. (232,824) Deferred income tax benefit (expense) 1,496,793 (1) (813,340) (2) 582,644 (3) Total income tax benefit (expense) Ps. 1,406,184 Ps. (1,094,831) Ps. 349,820 (1) Includes translation effect by Ps.2,035 (2) Includes translation effect by Ps.(2,278) (3) Includes translation effect by Ps.2,680 Consolidated statements of comprehensive income 2020 2019 2018 Deferred income tax related to items recognized in OCI during the year Net gain (loss) cash flow hedges Ps. 46,835 Ps. (74,820) Ps. 85,107 Remeasurement (loss) gain of employee benefits 794 3,058 (1,797) Deferred income tax charged to OCI Ps. 47,629 Ps. (71,762) Ps. 83,310 d) A reconciliation of the statutory corporate income tax rate to the Company’s effective tax rate for financial reporting purposes is as follows: 2020 2019 2018 Statutory income tax rate 30.00 % 30.00 % 30.00 % Amendment tax return effects and other tax adjustments 0.92 % (0.51) % 0.05 % Inflation on furniture, intangible and equipment 0.29 % (0.48) % 2.08 % Inflation of tax losses 0.23 % (0.21) % 1.16 % Foreign countries difference with Mexican statutory rate (0.06) % 0.11 % (0.02) % Annual inflation adjustment (0.91) % (0.05) % 0.26 % Unrecorded deferred taxes on tax losses (1.29) % 0.27 % (3.96) % Non-deductible expenses (4.51) % 0.19 % (2.51) % 24.67 % 29.32 % 27.06 % 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, Costa Rica and El Salvador) 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, 2020, 2019 and 2018, the Company obtained a net operating (loss) income of Ps.(1,835), Ps.(1,085) and Ps.8,549, respectively. According to Costa Rica Corporate Income tax law, the tax is based on the net income earned from traffic whose origin or final destination is Costa Rica, and net operating losses can offset taxable income in a term of three years. For the years ended December 31, 2020, 2019 and 2018, the Company generated net operating losses for an amount of Ps.55,751, Ps.50,246 and Ps.170,731, respectively, for which no deferred tax asset has been recognized. According to El Salvador Corporate Income tax law, the tax is based on the net income earned from traffic whose origin or final destination is Costa Rica, and net operating losses cannot offset taxable income in prior or future years. For the year ended December 31, 2020 and 2019, the Company obtained a net operating loss of Ps.16,619 and Ps.32,494. e) An analysis of consolidated deferred taxes is as follows: 2020 2019 Consolidated Consolidated Consolidated Consolidated statement of statement of statement of statement of financial position operations financial position operations Deferred income tax assets: Lease liability Ps. 13,239,254 Ps. 1,084,140 Ps. 12,155,114 Ps. 313,137 Unearned transportation revenue 1,233,661 436,598 797,063 61,708 Extension lease agreement 773,443 314,100 459,343 (137,639) Tax losses available for offsetting against future taxable income 576,422 272,452 303,970 (5,350) Intangible 420,908 (25,941) 446,849 (13,741) Allowance for doubtful accounts 61,565 47,476 14,089 9,187 Employee benefits 15,191 2,934 11,463 2,958 Financial instruments 7,948 (22) (38,865) — Employee profit sharing 4,323 (2,904) 7,227 2,734 Provisions (91,253) (442,598) 351,345 60,655 Non derivative financial instruments (473,242) (477,471) 4,229 4,229 15,768,220 1,208,764 14,511,827 297,878 Deferred income tax liabilities: Right of use asset 10,292,753 55,824 10,236,929 672,311 Supplemental rent 1,878,865 171,916 1,706,949 111,430 Rotable spare parts, furniture and equipment, net 707,092 (177,384) 884,476 239,452 Inventories 83,402 (6,885) 90,287 1,392 Other prepayments 9,786 (17,942) 27,728 (4,329) Prepaid expenses and other assets (132,462) (311,523) 179,061 88,683 12,839,436 (285,994) 13,125,430 1,108,939 Ps. 2,928,784 Ps. 1,494,758 Ps. 1,386,397 Ps. (811,061) Reflected in the consolidated statement of financial position as follows: 2020 2019 Deferred tax assets Ps. 3,128,555 Ps. 1,542,536 Deferred tax liabilities (199,771) (156,139) Deferred tax assets, net Ps. 2,928,784 Ps. 1,386,397 A reconciliation of deferred tax asset, net is as follows: 2020 2019 Opening balance as of January 1, Ps. 1,386,397 Ps. 2,269,220 Deferred income tax (expense) benefit during the current year recorded on profits 1,494,758 (811,061) Deferred income tax (expense) benefit during the current year recorded in accumulated other comprehensive income (loss) 47,629 (71,762) Closing balance as of December 31, Ps. 2,928,784 Ps. 1,386,397 At December 31, 2020, 2019 and 2018, the table shown above includes deferred income tax asset recognized by Concesionaria (2020 and 2017), Comercializadora (2019 and 2020) and Vuela Aviación (2020) 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 these regards, the Company has recognized at December 31, 2020, 2019 and 2018 a deferred tax asset for tax losses of Ps.576,422, Ps.303,970 and Ps.309,320 respectively. During 2020, the Company recognized a deferred tax asset for the carry-forward of available tax losses of Concesionaria and Comercializadora, 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, is derived directly from Concesionaria’s operations. The temporary differences associated with investments in the Company’s subsidiaries, for which a deferred tax liability has not been recognized in the periods presented, aggregate to Ps.150,683 (2019:Ps.276,393). The Company has determined that the undistributed profits of its subsidiaries will not be distributed in the foreseeable future. The Company has an agreement with its associate that the profits of the associate will not be distributed until it obtains the consent of the Company. The Company does not anticipate giving such consent at the reporting date. Furthermore, the Group’s joint venture will not distribute its profits until it obtains the consent of all venture partners. An analysis of the available tax losses carry-forward of the Company at December 31, 2020 is as follows: Year Historical Adjusted Total remaining Year of of loss loss tax loss Utilized amount expiration 2017 Ps. 1,067,836 Ps. 1,206,232 Ps. 217,393 Ps. 988,839 2018 92,604 92,604 78,849 13,755 2019 4,922 5,186 — 5,186 2020 863,847 878,533 — 878,533 2020 55,751 55,751 — 55,751 Ps. 2,084,960 Ps. 2,238,306 Ps. 296,242 Ps. 1,942,064 A breakdown of available tax loss carry-forward of Controladora and its subsidiaries at December 31, 2020 is as follows: Historical Adjusted Total loss tax loss Utilized remaining amount Comercializadora Ps. 42,777 Ps. 43,685 Ps. — Ps. 43,685 Concesionaria 1,875,180 2,027,302 217,393 1,809,909 Operaciones Volaris 18,648 18,965 — 18,965 Vuela Aviación 148,355 148,354 78,849 69,505 Ps. 2,084,960 Ps. 2,238,306 Ps. 296,242 Ps. 1,942,064 Unrecognized NOLs 20,657 Ps. 1,921,407 Tax rate 30 % Deferred income tax Ps. 576,422 f) At December 31, 2020 the Company had the following tax balances: 2020 Adjusted contributed capital account ( Cuenta de capital de aportación or “CUCA”) Ps. 4,607,752 CUFIN* 3,241,275 * The calculation comprises all the subsidiaries of the Company .

Other operating income and expe

Other operating income and expenses	12 Months Ended
	Dec. 31, 2020
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: 2020 2019 2018 Gain on sale and leaseback (Note 12) Ps. 710,522 Ps. 284,759 Ps. 609,168 Loss on sale of rotable spare parts furniture and equipment (2,604) (8,954) (2,356) Other income 22,415 51,403 15,161 Ps. 730,333 Ps. 327,208 Ps. 621,973 An analysis of other operating expenses is as follows: 2020 2019 2018 Administrative and operational support expenses Ps. 632,041 Ps. 581,181 Ps. 536,079 Technology and communications 383,648 381,055 385,841 Passenger services 87,850 65,477 70,337 Insurance 53,507 74,661 60,892 Others 194 10,553 5,949 Ps. 1,157,240 Ps. 1,112,927 Ps. 1,059,098

Finance income and cost

Finance income and cost	12 Months Ended
	Dec. 31, 2020
Finance income and cost
Finance income and cost	21. Finance income and cost An analysis of finance income is as follows: 2020 2019 2018 Interest on cash and equivalents Ps. 93,122 Ps. 201,191 Ps. 152,437 Interest on asset backed trust notes 6,342 6,525 — Interest on recovery of guarantee deposits 2,047 83 166 Ps. 101,511 Ps. 207,799 Ps. 152,603 An analysis of finance cost is as follows: 2020 2019 2018 Interest expense on lease liabilities and aircraft and engine lease return obligation Ps. 2,350,250 Ps. 2,128,162 Ps. 1,755,978 Financial instruments loss 448,559 — — Interest on asset backed trust notes 116,240 80,314 — Cost of letter credit notes 73,141 49,856 57,277 Bank fees and others 3,707 3,607 6,141 Interest on debts and borrowings* 16,368 1,660 56,916 Other finance costs 10,219 6,230 — Ps. 3,018,484 Ps. 2,269,829 Ps. 1,876,312 * 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. 2020 2019 2018 Interest on debts and borrowings Ps. 400,406 Ps. 457,973 Ps. 414,836 Capitalized interest (Note 12) (384,038) (456,313) (357,920) Net interest on debts and borrowing in the consolidated statements of operations Ps. 16,368 Ps. 1,660 Ps. 56,916

Components of other comprehensi

Components of other comprehensive (loss) income	12 Months Ended
	Dec. 31, 2020
Components of other comprehensive (loss) income
Components of other comprehensive (loss) income	22. Components of other comprehensive (loss) income An analysis of the other comprehensive (loss) income for the years ended December 31, 2020, 2019 and 2018 is as follows: 2020 2019 2018 Derivative financial instruments: Reclassification of call options and forwards during the year to profit or loss Ps. — Ps. — Ps. (455,009) Extrinsic value of changes on jet fuel Asian call options (11,993) 11,148 227,509 Extrinsic value of changes on jet fuel Zero cost collars (143,224) 256,515 (122,948) (Loss) gain of the matured foreign currency forward contracts — (14,241) 66,757 Loss of the interest rate Cap (900) (4,023) — Non derivative financial instruments (1,591,569) 14,096 — Total Ps. (1,747,686) Ps. 263,495 Ps. (283,691)

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2020
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) 2021 US$ 40,213 Ps. 802,197 2022 138,919 2,771,253 2023 265,836 5,303,083 2024 705,331 14,070,437 2025 and thereafter 3,221,596 64,266,652 US$ 4,371,895 Ps. 87,213,622 (1) Using the exchange rate as of December 31, 2020 of Ps.19.9487. All aircraft acquired by the Company through the Airbus purchase agreement through December 31, 2020 have been executed through sale and leaseback transactions. In addition, we have commitments to execute sale and leaseback over the next two years. The estimated proceeds from these commitments are as follows: Aircraft sale prices estimated in U.S. dollars in Mexican pesos (1) 2021 US$ 209,500 Ps. 4,179,253 2022 547,328 10,918,482 US$ 756,828 Ps. 15,097,735 (1) Using the exchange rate as of December 31, 2020 of Ps.19.9487. The future lease payments for these non-cancellable sale and leaseback contracts are as follows: Aircraft leases in U.S. dollars in Mexican pesos (1) 2021 US$ 9,720 Ps. 193,901 2022 47,972 956,979 2023 63,222 1,261,197 2024 63,222 1,261,197 2025 and thereafter 574,529 11,461,107 US$ 758,665 Ps. 15,134,381 (1) Using the exchange rate as of December 31, 2020 of Ps.19.9487. Litigation The Company is a party to legal proceedings and claims that arise during the ordinary course of business. The Company believes the ultimate outcome of these matters will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

Operating segments

Operating segments	12 Months Ended
	Dec. 31, 2020
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: 2020 2019 2018 Operating revenues: Domestic (Mexico) Ps. 16,572,198 Ps. 24,594,797 Ps. 18,493,476 International: United States of America and Central America* 5,998,615 10,230,824 8,811,674 Non-derivative financial instruments (411,222) (72,949) — Total operating revenues Ps. 22,159,591 Ps. 34,752,672 Ps. 27,305,150 *United States of America represents approximately 27%, 29% and 31% of total revenues from external customers in 2020, 2019 and 2018, 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, 2020
Subsequent events
Subsequent events	25. Subsequent events Subsequent to December 31, 2020 and through April 29, 2021: During the first quarter of 2021, the Company demonstrated flexibility focusing on capacity management in the face of a volatile demand environment. The Company finished the quarter operating 88.3% of the Available Seat Miles flown in the first quarter of the prior year. On April 16th, 2021, the Company received the Famous Brand Declaration from the Mexican Institute of Industrial Property ("IMPI") for the "Volaris" brand, which is the first trademark within the Mexican aviation industry declared as a Famous Brand by IMPI.

Description of the business a_2

Description of the business and summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2020
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, 2020 and 2019 and for each of the three years ended December 31, 2020, 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. 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, 2020 and 2019, for accounting purposes the companies included in the consolidated financial statements are as follows: Principal % Equity interest Name Activities Country 2020 2019 Concesionaria Air transportation services for passengers, cargo and mail throughout Mexico and abroad Mexico 100 % 100 % Vuela Aviación, S.A. Air transportation services for passengers, cargo and mail in Costa Rica and abroad Costa Rica 100 % 100 % Vuela, S.A. (“Vuela”) * Air transportation services for passengers, cargo and mail in Guatemala and abroad Guatemala 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 % 100 % Comercializadora Volaris, S.A. de C.V. Merchandising of services Mexico 100 % 100 % Servicios Earhart, S.A.* Recruitment and payroll Guatemala 100 % 100 % Servicios Corporativos Volaris, S.A. de C.V. (“Servicios Corporativos”) Recruitment and payroll Mexico 100 % 100 % Servicios Administrativos Volaris, S.A. de C.V. (“Servicios Administrativos”) Recruitment and payroll Mexico 100 % 100 % Comercializadora V Frecuenta, S.A. de C.V. (“Loyalty Program”) ** Loyalty Program Mexico 100 % 100 % Viajes Vuela, S.A. de C.V. (“Viajes Vuela”) Travel agency Mexico 100 % 100 % Deutsche Bank México, S.A., Trust 1710 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % Deutsche Bank México, S.A., Trust 1711 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % Irrevocable Administrative Trust number F/307750 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number F/745291 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number CIB/3081 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number CIB/3249 “Administrative Trust” Asset backed securities trustor & administrator (Note 5) Mexico 100 % 100 % *The Companies have not started operations yet in Guatemala and El Salvador. **The Company has not started operations yet 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. 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 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, as a modification of the tickets sold to V Club members. Tickets sold by other airlines where the Company provides the transportation are recognized as passenger revenue when the service is provided. The Company sells certain tickets with connecting flights with one or more segments operated by its other airline partner. For segments operated by its other airline partners, the Company has determined that it is acting as an agent on behalf of the other airlines as they are responsible for their portion of the contract (i.e. transportation of the passenger). The Company, as the agent, recognizes revenue within Other operating revenue at the time of the travel for the net amount retained by the Company for any segments flown by other airlines. 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 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. 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 2018. 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. 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 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´s tickets are non-refundable. However, if the Company cancels a flight for causes attributable to the airline, including as a result of the COVID-19 pandemic, then the passenger is entitled to either move their flight at no cost, receive a refund or a voucher. No revenue is recognized until either the voucher is redeemed, and the associate flight occurs, or the voucher expires. When vouchers issued exceed the amount of the original amount paid by the passenger the excess is recorded as reduction of the operating revenues. All of the Company´s revenues related to future services are rendered through an approximate period of 12 months. As of December 31, 2020, the Company recorded an amount of Ps.1,720,939 related to vouchers to be redeemed by passengers, which were presented as part of the unearned transportation revenues. Breakdown of revenues: As of December 31, 2020, 2019 and 2018, the revenues from customers of contracts is described as follows: At the flight time At the sale Total Revenue recognition as of December 31, 2020 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 8,455,647 Ps. 4,417,527 Ps. — Ps. — Ps. 12,873,174 Other Passenger Revenues 6,920,141 1,536,206 124,450 32,601 8,613,398 15,375,788 5,953,733 124,450 32,601 21,486,572 Non-Passenger Revenues Other Non-Passenger revenues 875,610 6,750 — — 882,360 Cargo 196,349 5,532 — — 201,881 Total Ps. 16,447,747 Ps. 5,966,015 Ps. 124,450 Ps. 32,601 Ps. 22,570,813 Non-derivative financial instruments (411,222) Ps. 22,159,591 At the flight time At the sale Total Revenue recognition as of December 31, 2019 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 15,833,878 Ps. 7,296,113 Ps. — Ps. — Ps. 23,129,991 Other Passenger Revenues 7,531,725 2,865,555 119,466 52,462 10,569,208 23,365,603 10,161,668 119,466 52,462 33,699,199 Non-Passenger Revenues Other Non-Passenger revenues 888,353 9,233 — — 897,586 Cargo 221,375 7,461 — — 228,836 Total Ps. 24,475,331 Ps. 10,178,362 Ps. 119,466 Ps. 52,462 Ps. 34,825,621 Non-derivative financial instruments (72,949) Ps. 34,752,672 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 Transactions from unearned transportation revenues. 2020 2019 January 1, Ps. 3,679,926 Ps. 2,438,516 Deferred 23,657,563 34,940,609 Recognized in revenue during the year (21,486,572) (33,699,199) December 31, Ps. 5,850,917 Ps. 3,679,926 The performance obligations related to contract liability are recognized over the following 12 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. The Company has agreements with financial institutions that process customer credit card transactions for the sale of air travel and other services. These credit card processing agreements doesn’t have significant cash reserve requirements.
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 recognition 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. Financial assets at fair value through OCI with recycling of cumulative gains and losses. 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. 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 8. For trade receivables, the Company applies a simplified approach in calculating expected credit losses (ECLs). Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. For the years ended December 31, 2020 y 2019 the Company recorded expected credit losses on accounts receivable of Ps.13,664 and Ps.40,393, 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, 2020 and 2019 the Company has 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.
Other accounts receivable	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 measured at cost 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. For the years ended December 31, 2020 and 2019, the Company did not record any impairment loss in the value of its intangible assets.
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 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. Some other aircraft lease agreements 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, certain of these lease agreements include the obligation to make a maintenance adjustment payment to the lessors at the end of the lease period. These maintenance adjustments cover maintenance events that are not expected to be made before the termination of the lease; 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 portion of prepaid maintenance deposits that is deemed unlikely to be recovered and accruals in lien of maintenance deposits, are recorded as a variable lease payment and is presented as supplemental rent in the consolidated statements of operations. For the years ended December 31, 2020, 2019 and 2018, the Company expensed as supplemental rent Ps.421,030, Ps.295,720 and Ps.299,601, respectively. During the year ended December 31, 2020, 2019 and 2018, the Company added seven, seven and ten new net leases aircraft to its fleet, respectively (Note 14). During the year ended December 31, 2020, the Company did not extend the lease term of aircraft and engines agreements. During the years ended December 31, 2019 and 2018, the Company extended the lease term of one and two aircraft agreements, respectively. Additionally, the Company extended the lease term of one spare engine in 2019 and two spare engines in 2018. 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 was recognized as a lease incentive reducing the right of use asset (Note 14).
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 Federal Civil Aviation Agency (Agencia Federal de Aviación Civil) 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, 2020 and 2019, the Company capitalized major maintenance events as part of leasehold improvements to flight equipment for an amount of Ps.646,219 and Ps.659,082, respectively. For the years ended December 31, 2020 and 2019, the amortization of major maintenance leasehold improvement costs was Ps.652,091 and Ps.450,371, respectively. 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 12e). 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, 2020, 2019 and 2018, the Company capitalized borrowing costs which amounted to Ps.384,038, Ps. 456,313 and Ps.357,920, respectively (Note 21). The rate used to determine the amount of borrowing cost was 3.58%, 5.10% and 4.41%, for the years ended December 31, 2020, 2019 and 2018, respectively. Depreciation rates are as follows: Annual depreciation rate Flight equipment 4.0-16.7% Constructions and improvements Remaining contractual lease term Computer equipment 25% Workshop tools 33.3% Electric power equipment 10% Communications equipment 10% Workshop machinery and equipment 10% Motorized transport equipment platform 25% Service carts on board 20% Office furniture and equipment 10% 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 of these assets and any changes are accounted for prospectively. The Company identified one Cash Generating Unit (CGU), which includes the entire aircraft fleet and flight equipment. The Company assesses, at each reporting date, whether there is an objective evidence that rotable spare parts, furniture and equipment and right of use asset are impaired in the CGU. The Company records impairment charges on rotable spare parts, furniture and equipment and right of use assets 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 2020, the Company performed its annual impairment test. The recoverable amount of the CGU 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 carrying amount of the CGU did not exceed the value in use. Consequently, for the years ended December 31, 2020, 2019 and 2018, there were no impairment charges recorded in respect of the Company’s cash generating unit. For the years ended December 31, 2020, there was no impairment charges recorded in respect of the Company’s cash generating unit despite of the consequence of decreased operations as a result of Covid-19.
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 and the OCI. For the year ended December 31, 2020, 2019 and 2018, 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 2020 as of 2020 for 2019 as of 2019 for 2018 as of 2018 Costa Rica Colon U.S. dollar ₵. 588.4240 ₵. 615.7800 ₵. 590.9574 ₵. 573.4400 ₵. 580.8534 ₵. 609.6100 Guatemala Quetzal U.S. dollar Q. 7.7292 Q. 7.8095 Q. 7.7066 Q. 7.6988 Q. 7.5337 Q. 7.7440 El Salvador U.S Dollar U.S. dollar $. 21.4961 $ 19.9487 $. $. $. — $. — The exchange rates used to translate the above amounts to Mexican pesos at December 31, 2020, 2019 and 2018, were Ps.19.9487, Ps.18.8452 and Ps.19.6829, 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, 2020, 2019 and 2018, were Ps.23,970, Ps.8,045 and Ps.22,156, 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.
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, 2020 and 2019, 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, 2020. 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 , less the fair value of plan assets out of which the obligations are to be settled. For entities in Costa Rica, Guatemala and El Salvador there is no obligation to pay seniority premium, these countries have Post- Employee 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, 2020, 2019 and 2018 the Company expensed Ps.25,918, Ps.62,825 and Ps.67,680, respectively, as quarterly incentive bonuses, recorded under the caption salaries and benefits. The Company has a 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, 2020, 2019 and 2018 the Company recorded an expense for an amount of Ps.0, Ps.80,634 and Ps.50,000, 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 2020, 2019 and 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, 2020, 2019 and 2018, the Company expensed Ps.75,040, Ps.49,659 and Ps.19,980, 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, 2020, 2019 and 2018, the Company recorded an expense (benefit) expense for Ps.(1,901), Ps.2,964 and Ps.(186), 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, 2020, 2019 and 2018, the Company recorded an expense (benefit) for Ps.107,204, Ps.37,760 and Ps.(5,052), 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 2020, 2019 and 2018, the employee profit sharing is Ps.13,458, Ps.22,134 and Ps.14,106, 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 Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. i) Right-of-use assets The Company recognize right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset to the condition required by the terms and conditions of the lease, and lease payments made at or before the commencement date less any lease incentives received. Components of the right-of-use assets are depreciated on a straight-line basis over the shorter of the remining lease term and the estimated useful lives of the assets, as follows: Aircraft and engines up to 18 years Spare engines up to 14 years Buildings leases one to ten years Maintenance component up to eight years ii) Lease Liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. Variable lease payments that do not depend on an index or a rate are recognized as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset. The short-term leases and leases of low value assets are recognized as expense on a straight-line basis over the lease term. During the years ended December 31, 2020, 2019 and 2018, there were no impairment charges recorded in respect of the Company right-of-use asset. iii) 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. The Company measures the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right of use retained by the seller-lessee. Accordingly, the Company recognizes in the Statement of Operations only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. The rest of the gain is amortized over the lease term. iv) Return obligations 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 variable lease expenses 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, 2020, 2019 and 2018, the Company expensed as variable rent of Ps.1,428,179, Ps.680,964 and Ps.659,106, respectively.
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, Guatemala and El Salvador at the date of the consolidated statement of financial position.
Derivative and non-derivative financial instruments and hedge accounting	s) Derivative and non-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 and non-derivative financial instrument. In accordance with IFRS 9, derivative financial instruments and non-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 in the statement of profit or loss. The cash flow hedge reserve is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value of the hedged item. During the years ended December 31, 2019 and 2018, 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. During the year ended December 31, 2020, the Company recorded the ineffective portion of Ps.448.6 million with respect to derivative financial instruments. The realized gain or loss of derivative financial instruments and non-derivative financial instruments that qualify as CFH are 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, 2020. The Company has not early adopted any other standard interpretation or amendment that has been issued but is not yet effective. The nature and the effect of these changes are disclosed below: Amendments to IFRS 3: Definition of a Business The amendment to IFRS 3 Business Combinations clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the ability to create output. Furthermore, it clarifies that a business can exist without including all of the inputs and processes needed to create outputs. These amendments did not have an impact on consolidated financial statements of the Company. Amendments to IFRS 7, IFRS 9 and IAS 39 Interest Rate Benchmark Reform The amendments to IFRS 9 and IAS 39 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument. These amendments had no impact on the consolidated financial statements of the Company. Amendments to IAS 1 and IAS 8 Definition of Material The amendments provide a new definition of material that states, “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the consolidated financial statements of, nor is there expected to be any future impact to the Company. Conceptual Framework for Financial Reporting issued on March 29, 2018 The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards. This will affect those entities which developed their accounting policies based on the Conceptual Framework. The revised Conceptual Framework includes some new concepts, updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no impact on the consolidated financial statements of the Company. Amendments to IFRS 16 Covid-19 Related Rent Concessions On 28 May 2020, the IASB issued Covid-19-Related Rent Concessions - amendment to IFRS 16 Leases The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the Covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification. This amendment had impact on the consolidated financial statements of the Company (Note 14). Amendments to IFRS 9 Prepayment Features with Negative Compensation Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contractual cash flows are ‘solely payments of principal and interest on the principal amount outstanding’ (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of an event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract. These amendments had no impact on the consolidated financial statements of the Company.
Convenience translation	y) Convenience translation U.S. dollar amounts at December 31, 2020 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.19.9487 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, 2020. 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, 2020
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 2020 2019 Concesionaria Air transportation services for passengers, cargo and mail throughout Mexico and abroad Mexico 100 % 100 % Vuela Aviación, S.A. Air transportation services for passengers, cargo and mail in Costa Rica and abroad Costa Rica 100 % 100 % Vuela, S.A. (“Vuela”) * Air transportation services for passengers, cargo and mail in Guatemala and abroad Guatemala 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 % 100 % Comercializadora Volaris, S.A. de C.V. Merchandising of services Mexico 100 % 100 % Servicios Earhart, S.A.* Recruitment and payroll Guatemala 100 % 100 % Servicios Corporativos Volaris, S.A. de C.V. (“Servicios Corporativos”) Recruitment and payroll Mexico 100 % 100 % Servicios Administrativos Volaris, S.A. de C.V. (“Servicios Administrativos”) Recruitment and payroll Mexico 100 % 100 % Comercializadora V Frecuenta, S.A. de C.V. (“Loyalty Program”) ** Loyalty Program Mexico 100 % 100 % Viajes Vuela, S.A. de C.V. (“Viajes Vuela”) Travel agency Mexico 100 % 100 % Deutsche Bank México, S.A., Trust 1710 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % Deutsche Bank México, S.A., Trust 1711 Pre-delivery payments financing (Note 5) Mexico 100 % 100 % Irrevocable Administrative Trust number F/307750 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number F/745291 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number CIB/3081 “Administrative Trust” Share administration trust (Note 17) Mexico 100 % 100 % Irrevocable Administrative Trust number CIB/3249 “Administrative Trust” Asset backed securities trustor & administrator (Note 5) Mexico 100 % 100 % *The Companies have not started operations yet in Guatemala and El Salvador. **The Company has not started operations yet
Schedule of breakdown of revenues	At the flight time At the sale Total Revenue recognition as of December 31, 2020 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 8,455,647 Ps. 4,417,527 Ps. — Ps. — Ps. 12,873,174 Other Passenger Revenues 6,920,141 1,536,206 124,450 32,601 8,613,398 15,375,788 5,953,733 124,450 32,601 21,486,572 Non-Passenger Revenues Other Non-Passenger revenues 875,610 6,750 — — 882,360 Cargo 196,349 5,532 — — 201,881 Total Ps. 16,447,747 Ps. 5,966,015 Ps. 124,450 Ps. 32,601 Ps. 22,570,813 Non-derivative financial instruments (411,222) Ps. 22,159,591 At the flight time At the sale Total Revenue recognition as of December 31, 2019 Domestic International Domestic International Revenues Passenger Revenues Fare Revenues Ps. 15,833,878 Ps. 7,296,113 Ps. — Ps. — Ps. 23,129,991 Other Passenger Revenues 7,531,725 2,865,555 119,466 52,462 10,569,208 23,365,603 10,161,668 119,466 52,462 33,699,199 Non-Passenger Revenues Other Non-Passenger revenues 888,353 9,233 — — 897,586 Cargo 221,375 7,461 — — 228,836 Total Ps. 24,475,331 Ps. 10,178,362 Ps. 119,466 Ps. 52,462 Ps. 34,825,621 Non-derivative financial instruments (72,949) Ps. 34,752,672 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
Schedule of transactions from unearned transportation revenues	2020 2019 January 1, Ps. 3,679,926 Ps. 2,438,516 Deferred 23,657,563 34,940,609 Recognized in revenue during the year (21,486,572) (33,699,199) December 31, Ps. 5,850,917 Ps. 3,679,926
Schedule of depreciation rates	Annual depreciation rate Flight equipment 4.0-16.7% Constructions and improvements Remaining contractual lease term Computer equipment 25% Workshop tools 33.3% Electric power equipment 10% Communications equipment 10% Workshop machinery and equipment 10% Motorized transport equipment platform 25% Service carts on board 20% Office furniture and equipment 10% 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 2020 as of 2020 for 2019 as of 2019 for 2018 as of 2018 Costa Rica Colon U.S. dollar ₵. 588.4240 ₵. 615.7800 ₵. 590.9574 ₵. 573.4400 ₵. 580.8534 ₵. 609.6100 Guatemala Quetzal U.S. dollar Q. 7.7292 Q. 7.8095 Q. 7.7066 Q. 7.6988 Q. 7.5337 Q. 7.7440 El Salvador U.S Dollar U.S. dollar $. 21.4961 $ 19.9487 $. $. $. — $. —
Summary of estimated useful lives of the assets	Aircraft and engines up to 18 years Spare engines up to 14 years Buildings leases one to ten years Maintenance component up to eight years

Financial instruments and ris_2

Financial instruments and risk management (Tables)	12 Months Ended
	Dec. 31, 2020
Financial instruments and risk management
Schedule of notional amounts and strike prices of derivative financial instruments	Position as of December 31, 2020 Jet fuel Asian call and Zero-Cost collars option contracts maturities 1 Half 2021 2 Half 2021 2021 Total Jet fuel risk Asian Calls Notional volume in gallons (thousands)* 7,280 — 7,280 Strike price agreed rate per gallon (U.S.dollars) ** US$ 1.90 — US$ 1.90 Approximate percentage of hedge (of expected consumption value) 6 % — % 3 % Jet fuel risk Zero-Cost collars Notional volume in gallons (thousands)* 7,556 — 7,556 Strike price agreed rate per gallon (U.S. dollars) ** US$ 1.23 / 1.93 US$ — US$ 1.23 / 1.93 Approximate percentage of hedge (of expected consumption value) 6 % — % 3 % All-in Approximate percentage of hedge (of expected consumption value) 12 % — % 6 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average Position as of December 31, 2019 Jet fuel Zero-Cost Collar collars option contracts maturities 1 Half 2020 2 Half 2020 2020 Total Jet fuel risk Zero-Cost collars Notional volume in gallons (thousands)* 34,480 22,164 56,644 Strike price agreed rate per gallon (U.S.dollars)** US$ / US$ / US$ / Approximate percentage of hedge (of expected consumption value) 25 % 15 % 20 % All-in Approximate percentage of hedge (of expected consumption value) 25 % 15 % 20 % * US Gulf Coast Jet 54 as underlying asset ** Weighted average
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, 2020 effect on equity (U.S. dollars) US Gulf Coast Jet Fuel 54 spot level +5% +0.16M -5% -0.16M Please note this sensitivity was calculated with the net position delta of the portfolio, as change on the underlying price is small enough to be a good proxy.
Schedule of foreign exchange exposure	Thousands of U.S. dollars 2020 2019 Assets: Cash and cash equivalents US$ 495,612 US$ 373,099 Other accounts receivable, net 39,997 23,620 Guarantee deposits 479,566 437,499 Derivative financial instruments 10 7,088 Total assets US$ 1,015,185 US$ 841,306 Liabilities: Financial debt (Note 5) US$ 183,806 US$ 176,927 Lease liabilities 2,334,153 2,263,849 Suppliers 174,553 76,471 Other taxes and fees payable 16,105 22,486 Derivative financial instruments 484 — Total liabilities 2,709,101 2,539,733 Net foreign currency position US$ (1,693,916) US$ (1,698,427) Thousands of U.S. dollars 2020 2019 Assets: Cash and cash equivalents US$ 495,612 US$ 373,099 Other accounts receivable, net 39,997 23,620 Guarantee deposits 479,566 437,499 Derivative financial instruments 10 7,088 Total assets US$ 1,015,185 US$ 841,306 Liabilities: Financial debt (Note 5) US$ 183,806 US$ 176,927 Lease liabilities 2,334,153 2,263,849 Suppliers 174,553 76,471 Other taxes and fees payable 16,105 22,486 Derivative financial instruments 484 — Total liabilities 2,709,101 2,539,733 Net foreign currency position US$ (1,693,916) US$ (1,698,427)
Schedule of contractual principal payments required on financial liabilities and derivative instruments fair value	December 31, 2020 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 1,096,543 Ps. 2,554,069 Ps. 3,650,612 Short-term working capital facilities (Note 5) 200,000 — 200,000 Asset backed trust note (Note 5) 250,000 1,250,000 1,500,000 Derivative financial instruments: Jet fuel Asian Zero-Cost collars options contracts 9,657 — 9,657 Lease liabilities: Aircraft, engines, land and buildings leases 6,484,092 37,646,450 44,130,542 Aircraft and engine lease return obligation 86,801 2,417,683 2,504,484 Total Ps. 8,127,093 Ps. 43,868,202 Ps. 51,995,295 December 31, 2019 Within one One to five year years Total Interest-bearing borrowings: Pre-delivery payments facilities (Note 5) Ps. 1,855,956 Ps. 1,452,553 Ps. 3,308,509 Short-term working capital facilities (Note 5) 200,000 — 200,000 Asset backed trust note (Note 5) — 1,500,000 1,500,000 Lease liabilities: Aircraft, engines, land and buildings leases 4,720,505 35,796,540 40,517,045 Aircraft and engine lease return obligation 383,093 1,469,595 1,852,688 Total Ps. 7,159,554 Ps. 40,218,688 Ps. 47,378,242
Summary of impact on the equity due to changes in the fair value of forward exchange contracts	Change in Effect on profit USD rate before tax 2020 +5 % Ps. (253,763) -5 % 253,763 2019 +5 % Ps. (155,593) -5 % 155,593

Fair value measurements (Tables

Fair value measurements (Tables)	12 Months Ended
	Dec. 31, 2020
Fair value measurements
Schedule of carrying amounts and fair values of financial instruments	Carrying amount Fair value 2020 2019 2020 2019 Assets Derivative financial instruments Ps. 532 Ps. 136,262 Ps. 532 Ps. 136,262 Liabilities Financial debt (5,350,612) (5,008,509) (5,527,332) (5,194,316) Derivative financial instruments (9,657) — (9,657) — Total Ps. (5,359,737) Ps. (4,872,247) Ps. (5,536,457) Ps. (5,058,054) The following table summarizes the fair value measurements at December 31, 2020: 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. 206 Ps. — Ps. 206 Interest rate Caps — 326 — 326 Liabilities Derivatives financial instruments:Jet fuel Asian Zero-Cost collars options contracts* — (9,657) — (9,657) Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (5,527,332) — (5,527,332) Net Ps. — Ps. (5,536,457) Ps. — Ps. (5,536,457) * 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, 2019: 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 Zero-Cost collar options contracts* Ps. — Ps. 133,567 Ps. — Ps. 133,567 Interest rate Caps — 2,695 — 2,695 Liabilities for which fair values are disclosed: Interest-bearing loans and borrowings** — (5,194,316) — (5,194,316) Net Ps. — Ps. (5,058,054) Ps. — Ps. (5,058,054) * 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	The following table summarizes the (loss) gain from derivatives financial instruments recognized in the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018: Instrument Financial statements line 2020 2019 2018 Jet fuel Asian call options contracts Fuel Ps. (20,646) Ps. (61,069) Ps. 402,493 Jet fuel Zero-Cost collars contracts Fuel (835,884) (9,477) — Jet fuel Asian call options contracts Finance cost (12,981) — — Jet fuel Zero-Cost collars contracts Finance cost (435,578) — — Foreign currency forward Aircraft and engine rent expenses — 4,199 52,516 Interest rate cap Finance cost (1,468) (1,282) — Total Ps. (1,306,557) Ps. (67,629) Ps. 455,009 The following table summarizes the net gain (loss) on CFH before taxes recognized in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2019 and 2018: Consolidated statements of other comprehensive (loss) income Financial Instrument statements line 2020 2019 2018 Jet fuel Asian call options contracts OCI Ps. (11,993) Ps. 11,148 Ps. (174,984) Jet fuel Zero cost collars OCI (143,224) 256,515 (122,948) Foreign currency contracts OCI — (14,241) 14,241 Interest rate cap OCI (900) (4,023) — Non derivative financial instruments OCI (1,591,569) 14,096 — Total Ps. (1,747,686) Ps. 263,495 Ps. (283,691)

Financial assets and liabilit_2

Financial assets and liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Financial assets and liabilities
Schedule of financial assets	2020 2019 Derivative financial instruments designated as cash flow hedges (effective portion recognized within OCI) Jet fuel Asian call options Ps. 206 Ps. — Jet fuel Zero-Cost collars — 133,567 Interest rate cap 326 2,695 Total financial assets Ps. 532 Ps. 136,262 Presented on the consolidated statements of financial position as follows: Current Ps. 206 Ps. 133,567 Non-current Ps. 326 Ps. 2,695
Schedule of short-term and long-term debt	2020 2019 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 October 31, 2022, bearing annual interest rate at the three-month LIBOR plus a spread of 260 basis points. Ps. 3,650,612 Ps. 3,308,509 II. The Company issued in the Mexico market Asset backed trust notes (“CEBUR”), in Mexican pesos, maturing on June 20 th , 2024 bearing annual interest rate at TIIE 28 days plus 175 basis points. 1,500,000 1,459,871 III. In December 2019, the Company entered into a short-term working capital facility with Banco Sabadell S.A., Institución de Banca Multiple (“Sabadell”) in Mexican pesos, bearing annual interest rate at TIIE 28 days plus a 300 basis points. 200,000 200,000 IV. Amortized transaction costs (15,542) (22,472) V. Accrued interest and other financial cost 19,563 30,061 5,354,633 4,975,969 Less: Short-term maturities 1,558,884 2,086,017 Long-term Ps. 3,795,749 Ps. 2,889,952 TIIE: Mexican interbank rate
Summary of scheduled principal payments of financial debt and accrued interest	2021 2022 2023 2024 Total Santander/Bancomext Ps. 1,112,629 Ps. 2,554,069 Ps. — Ps. — Ps. 3,666,698 CEBUR 252,605 500,000 500,000 250,000 1,502,605 Banco Sabadell 200,872 — — — 200,872 Total Ps. 1,566,106 Ps. 3,054,069 Ps. 500,000 Ps. 250,000 Ps. 5,370,175
Schedule of changes in liabilities from financing activities	Foreign Current vs non- January 1, Net cash Accrued exchange current December 31, 2020 Flows Interest movement reclassification Other 2020 Current interest-bearing loans and borrowings Ps. 2,086,017 Ps. (1,231,695) Ps. (10,498) Ps. (32,491) Ps. 747,551 Ps. - Ps. 1,558,884 Non-current interest -bearing loans and borrowings 2,889,952 1,374,678 — 231,612 (747,551) 47,058 3,795,749 Total liabilities from financing activities Ps. 4,975,969 Ps. 142,983 Ps. (10,498) Ps. 199,121 Ps. - Ps. 47,058 Ps. 5,354,633 Current vs non- January 1, Net cash Accrued Foreign exchange current December 31, 2019 Flows Interest movement reclassification Other 2019 Current interest-bearing loans and borrowings Ps. 1,212,259 Ps. (633,609) Ps. 13,698 Ps. (41,173) Ps. 1,534,842 Ps. - Ps. 2,086,017 Non-current interest -bearing loans and borrowings 2,310,939 2,273,143 — (122,466) (1,534,842) (36,822) 2,889,952 Total liabilities from financing activities Ps. 3,523,198 Ps. 1,639,534 Ps. 13,698 Ps. (163,639) Ps. - Ps. (36,822) Ps. 4,975,969
Schedule of other financial liabilities	2020 2019 Derivative financial instruments designated as CFH (effective portion recognized within OCI): Zero-Cost Collar options Ps. 9,657 Ps. — Total financial liabilities Ps. 9,657 Ps. — Presented on the consolidated statements of financial position as follows: Current Ps. 9,657 Ps. — Non-current Ps. — Ps. —

Cash and cash equivalents (Tabl

Cash and cash equivalents (Tables)	12 Months Ended
	Dec. 31, 2020
Cash and cash equivalents
Summary of cash and cash equivalents	2020 2019 Cash in banks Ps. 6,907,295 Ps. 4,612,927 Short-term investments 3,068,618 3,231,125 Cash on hand 36,432 44,880 Restricted funds held in trust related to debt service reserves 91,040 91,040 Total cash and cash equivalents Ps. 10,103,385 Ps. 7,979,972

Related parties (Tables)

Related parties (Tables)	12 Months Ended
	Dec. 31, 2020
Related parties
Schedule of balances due from/to related parties	Country Type of transaction of origin 2020 2019 Terms Due from: Frontier Airlines Inc. (“Frontier”) Code-share USA Ps. 72,629 Ps. 23,442 30 days Ps. 72,629 Ps. 23,442 Due to: Grupo Aeroportuario del Centro Norte (“OMA”) Airport Services Mexico Ps. 80,681 Ps. — 30 days Aeromantenimiento, S.A. (“Aeroman”) Aircraft and engine Mexico/El Salvador 39,284 1,474 30 days Chevez, Ruiz, Zamarripa y Cía., S.C. Professional fees Mexico 4,823 — 30 days Mijares, Angoitia, Cortés y Fuentes, S.C. Professional fees Mexico 166 996 30 days Frontier Airlines Inc. (“Frontier”) Code-share USA 39 16,246 30 days One Link, S.A. de C.V. (“One Link”) Call center fees El Salvador — 39,838 30 days Ps. 124,993 Ps. 58,554
Schedule of transactions with related parties	Related party transactions Country of origin 2020 2019 2018 Revenues: Transactions with affiliates Frontier Airlines Inc Code-share USA Ps. 148,964 Ps. 208,968 Ps. 8,358 Expenses: Transactions with affiliates Aeromantenimiento, S.A. Aircraft and engine maintenance Mexico/El Salvador Ps. 239,118 Ps. 201,624 Ps. 341,726 Technical support Mexico/El Salvador 3,945 5,815 4,796 Onelink, S.A. de C.V. Call center fees Mexico/El Salvador 73,167 37,026 — Grupo Aeroportuario del Centro Norte Airport services Mexico 32,193 — — Mijares, Angoitia, Cortés y Fuentes, S.C. Professional fees Mexico 5,582 1,321 1,672 Chevez, Ruiz, Zamarripa y Cía, S.C. Professional fees Mexico 4,823 — — Servprot, S.A. de C.V. México 3,464 3,120 2,804 Human Capital International HCI, S.A. México — — 324

Other accounts receivable, net

Other accounts receivable, net (Tables)	12 Months Ended
	Dec. 31, 2020
Other accounts receivable, net
Schedule of other accounts receivables	2020 2019 Current: Credit cards Ps. 231,260 Ps. 389,634 Benefits from suppliers 105,947 26,989 Other accounts receivable 87,204 189,904 Other points of sales 67,315 102,002 Cargo clients 45,201 46,600 Employees 36,287 29,681 Travel agencies and insurance commissions 16,099 76,975 Marketing services receivable 4,020 7,024 Airport services 15 42,894 Affinity credit card — 49,040 Settlement receivable — 2,422 Insurance claims — 143 593,348 963,308 Allowance for credit losses (32,708) (40,308) Ps. 560,640 Ps. 923,000
Schedule of aging of accounts receivable	2020 2020 Total 2019 2019 Total Days Impaired Not impaired 2020 Impaired Not impaired 2019 0–30 Ps. 4,090 Ps. 486,001 Ps. 490,091 Ps. 5,804 Ps. 722,651 Ps. 728,455 31–60 — 13,872 13,872 — 64,983 64,983 61–90 — 6,081 6,081 — 19,274 19,274 91–120 28,618 54,686 83,304 34,504 116,092 150,596 Ps. 32,708 Ps. 560,640 Ps. 593,348 Ps. 40,308 Ps. 923,000 Ps. 963,308
Schedule of movement in the allowance for doubtful accounts	Balance as of January 1st, 2018 Ps. (17,809) Write-offs 17,126 Increase in allowance (10,621) Balance as of December 31, 2018 (11,304) Write-offs 11,389 Increase in allowance (40,393) Balance as of December 31, 2019 (40,308) Write-offs 21,264 Increase in allowance (13,664) Balance as of December 31, 2020 Ps. (32,708)

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2020
Inventories
Schedule of inventories	2020 2019 Spare parts and accessories of flight equipment Ps. 271,454 Ps. 294,390 Miscellaneous supplies 7,505 7,518 Ps. 278,959 Ps. 301,908

Prepaid expenses and other cu_2

Prepaid expenses and other current assets (Tables)	12 Months Ended
	Dec. 31, 2020
Prepaid expenses and other current assets
Schedule of prepaid expenses and other current assets	2020 2019 Flight credits Ps. 389,927 Ps. — Advances to suppliers 163,044 283,340 Sales commission to travel agencies (Note 1d) 151,342 84,239 Other prepaid expenses 81,803 115,054 Prepaid insurance 64,309 88,941 Advances to components suppliers — 209,557 Ps. 850,425 Ps. 781,131

Guarantee deposits (Tables)

Guarantee deposits (Tables)	12 Months Ended
	Dec. 31, 2020
Guarantee deposits
Schedule of guarantee deposits	2020 2019 Current asset: Credit letters deposits Ps. 829,918 Ps. — Aircraft maintenance deposits paid to lessors (Note 1j) 279,390 576,505 Deposits for rental of flight equipment 23,584 — Other guarantee deposits 9,064 23,822 1,141,956 600,327 Non-current asset: Aircraft maintenance deposits paid to lessors (Note 1j) 7,641,544 7,047,360 Deposits for rental of flight equipment 741,871 557,530 Other guarantee deposits 41,323 39,531 8,424,738 7,644,421 Ps. 9,566,694 Ps. 8,244,748

Rotable spare parts, furnitur_2

Rotable spare parts, furniture and equipment, net (Tables)	12 Months Ended
	Dec. 31, 2020
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 31, 2020 31, 2019 31, 2020 31, 2019 31, 2020 31, 2019 Leasehold improvements to flight equipment Ps. 5,092,049 Ps. 4,220,672 Ps. (3,354,166) Ps. (2,679,884) Ps. 1,737,883 Ps. 1,540,788 Pre-delivery payments* 4,920,126 4,507,770 — — 4,920,126 4,507,770 Flight equipment 1,689,473 1,287,102 (1,223,560) (553,852) 465,913 733,250 Construction and improvements in process 53,545 474,240 — — 53,545 474,240 Constructions and improvements 175,407 172,460 (148,391) (131,510) 27,016 40,950 Computer equipment 49,945 47,566 (42,126) (34,495) 7,819 13,071 Workshop tools 27,727 26,875 (24,398) (22,023) 3,329 4,852 Electric power equipment 20,448 20,412 (12,773) (11,400) 7,675 9,012 Communications equipment 14,803 14,099 (9,038) (8,322) 5,765 5,777 Workshop machinery and equipment 20,574 16,301 (7,641) (6,092) 12,933 10,209 Motorized transport equipment platform 15,247 15,026 (7,924) (5,392) 7,323 9,634 Service carts on board 9,216 7,675 (6,112) (5,554) 3,104 2,121 Office furniture and equipment 67,035 70,709 (35,309) (34,049) 31,726 36,660 Allowance for obsolescence (3,000) (3,000) — — (3,000) (3,000) Total Ps. 12,152,595 Ps. 10,877,907 Ps. (4,871,438) Ps. (3,492,573) Ps. 7,281,157 Ps. 7,385,334 * During the years ended December 31, 2020, 2019 and 2018, the Company capitalized borrowing costs of Ps.384,038, Ps.456,313 and Ps.357,920, respectively. The amount of this line is net of disposals of capitalized borrowing costs related to sale and leaseback transactions of Ps.401,862, Ps.328,571 and Ps.242,678, respectively. Motorized Workshop Constructions transport machinery Service Construction and Leasehold Flight and Computer Office furniture Electric power Workshop equipment Communications and carts on Allowance for Pre-delivery improvements improvements to equipment improvements equipment and equipment equipment Tools platform equipment equipment board obsolescence payments in process flight equipment Total Net book amount as of December 31, 2018 Ps. Ps. 15,235 Ps. 16,547 Ps. 38,306 Ps. 5,122 Ps. 3,369 Ps. 446 Ps. 4,911 Ps. 4,481 Ps. 126 Ps. — Ps. 3,672,090 Ps. 142,738 Ps. 1,214,589 Ps. 5,782,282 Additions 692,186 5,596 1,730 1,461 2,487 3,137 — 355 4,278 2,273 (3,000) 1,412,790 525,556 661,954 3,310,803 Disposals and transfers (538,370) — (131) (10) — — — (2) (35) — — (704,852) (3,957) — (1,247,357) Borrowing costs, net* — — — — — — — — — — — 127,742 — — 127,742 Other movements — 34,840 1,999 2,757 2,487 284 9,529 1,446 2,529 — — — (190,097) 133,939 (287) Depreciation (84,888) (14,721) (7,074) (5,854) (1,084) (1,938) (341) (933) (1,044) (278) — — — (469,694) (587,849) As of December 31, 2019 733,250 40,950 13,071 36,660 9,012 4,852 9,634 5,777 10,209 2,121 (3,000) 4,507,770 474,240 1,540,788 7,385,334 Cost 1,287,102 172,460 47,566 70,709 20,412 26,875 15,026 14,099 16,301 7,675 (3,000) 4,507,770 474,240 4,220,672 10,877,907 Accumulated depreciation (553,852) (131,510) (34,495) (34,049) (11,400) (22,023) (5,392) (8,322) (6,092) (5,554) — — — (2,679,884) (3,492,573) Net book amount as of December 31, 2019 733,250 40,950 13,071 36,660 9,012 4,852 9,634 5,777 10,209 2,121 (3,000) 4,507,770 474,240 1,540,788 7,385,334 Additions 668,376 128 1,648 733 — 851 — — — 1,541 — 2,185,902 176,607 646,219 3,682,005 Disposals and transfers (861,761) — — — — — — — — — — (1,755,724) (354,146) — (2,971,631) Borrowing costs, net* — — — — — — — — — — — (17,822) — — (17,822) Other movements — 2,317 713 101 36 — 222 1,083 4,273 — — — (243,156) 235,509 1,098 Depreciation (73,952) (16,379) (7,613) (5,768) (1,373) (2,374) (2,533) (1,095) (1,549) (558) — — — (684,633) (797,827) As of December 31, 2020 465,913 27,016 7,819 31,726 7,675 3,329 7,323 5,765 12,933 3,104 (3,000) 4,920,126 53,545 1,737,883 7,281,157 Cost 1,689,473 175,407 49,945 67,035 20,448 27,727 15,247 14,803 20,574 9,216 (3,000) 4,920,126 53,545 5,092,049 12,152,595 Accumulated depreciation (1,223,560) (148,391) (42,126) (35,309) (12,773) (24,398) (7,924) (9,038) (7,641) (6,112) — — — (3,354,166) (4,871,438) Net book amount as of December 31, 2020 Ps. 465,913 Ps. 27,016 Ps. 7,819 Ps. 31,726 Ps. 7,675 Ps. 3,329 Ps. 7,323 Ps. 5,765 Ps. 12,933 Ps. 3,104 Ps. (3,000) Ps. 4,920,126 Ps. 53,545 Ps. 1,737,883 Ps. 7,281,157 a) Depreciation expense for the years ended December 31, 2020, 2019 and 2018, was Ps.797,827, Ps.587,849 and Ps.427,756, 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.

Intangible assets, net (Tables)

Intangible assets, net (Tables)	12 Months Ended
	Dec. 31, 2020
Intangible assets, net
Schedule of intangible assets, net	Useful Gross value Accumulated amortization Net carrying amount Life At December 31, years 2020 2019 2020 2019 2020 2019 Software 1 – 4 Ps. 704,257 Ps. 579,360 Ps. (512,695) Ps. (411,963) Ps. 191,562 Ps. 167,397 Balance as of January 1st, 2019 Ps. 179,124 Additions 77,325 Disposals — Amortization (87,667) Exchange differences (1,385) Balance as of December 31, 2019 167,397 Additions 124,724 Disposals — Amortization (100,618) Exchange differences 59 Balance as of December 31, 2020 Ps. 191,562

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2020
Leases
Schedule of composition of fleet and spare engines, operating leases	Aircraft At December At December Type Model 31, 2020 31, 2019 A319 132 3 3 A319 133 2 4 A320 233 39 39 A320 232 1 2 A320NEO 271N 24 17 A321 231 10 10 A321NEO 271N 6 6 85 81 Engine spare At December At December Type Model 31, 2020 31, 2019 V2500 V2524-A5 2 2 V2500 V2527M-A5 3 3 V2500 V2527E-A5 5 3 V2500 V2527-A5 2 2 PW1100 PW1127G-JM 5 3 PW1100 PW1133G-JM 1 1 18 14 * 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. Aircraft At December At December Type Model 31, 2020 31, 2019 A319 132 3 3 A319 133 2 4 A320 233 39 39 A320 232 1 2 A320NEO 271N 24 17 A321 231 10 10 A321NEO 271N 6 6 85 81
Summary of carrying amounts of right-of-use assets recognized and the movements during the period	Spare engine Land and Aircraft leases leases building leases Total As at January 1st, 2019 Ps. 31,126,169 Ps. 579,696 Ps. 176,188 Ps. 31,882,053 Additions 6,676,492 230,200 42,992 6,949,684 Depreciation on right of use assets (4,490,572) (132,698) (79,701) (4,702,971) As at December 31, 2019 33,312,089 677,198 139,479 34,128,766 Additions 4,876,071 362,081 15,222 5,253,374 Disposals (17,742) — — (17,742) Foreign exchange effect — — 795 795 Depreciation on right of use assets (4,763,928) (210,079) (74,969) (5,048,976) As at December 31, 2020 Ps. 33,406,490 Ps. 829,200 Ps. 80,527 Ps. 34,316,217
Summary of carrying amounts of lease liabilities and the movements during the period	2020 2019 As at January 1 st Ps. 40,517,045 Ps. 39,565,146 Additions 5,572,764 7,186,613 Disposals (231,566) — Accretion of interest 2,218,982 2,037,540 Foreign exchange effect 2,163,886 (1,772,452) Payments (6,110,569) (6,499,802) As at 31 December Ps. 44,130,542 Ps. 40,517,045 Current Ps. 6,484,092 Ps. 4,720,505 Non-current Ps. 37,646,450 Ps.
Summary of amounts recognized in profit or loss	As of December As of December As of December 31, 2020 31, 2019 31, 2018 Depreciation of right-of-use assets Ps. (5,048,976) Ps. (4,702,971) Ps. (4,043,691) Interest expense on lease liabilities and aircraft and engine lease return obligation (Note 21) (2,350,250) (2,128,162) (1,755,978) Aircraft and engine variable expenses (1,845,254) (961,657) (956,010) Total amount recognized in profit or loss Ps. (9,244,480) Ps. (7,792,790) Ps. (6,755,679)

Accrued liabilities (Tables)

Accrued liabilities (Tables)	12 Months Ended
	Dec. 31, 2020
Accrued liabilities
Schedule of analysis of accrued liabilities short - term	2020 2019 Fuel and traffic accrued expenses Ps. 1,285,931 Ps. 1,507,659 Salaries and benefits 337,467 296,829 Sales, marketing and distribution accrued expenses 179,342 230,935 Maintenance deposits 174,549 132,085 Accrued administrative expenses 122,729 81,124 Maintenance and aircraft parts accrued expenses 98,942 120,254 Others 86,374 48,526 Information and communication accrued expenses 35,359 67,808 Deferred revenue from V Club membership 20,830 35,465 Supplier services agreement 10,634 10,634 Benefits from suppliers 3,888 — Advances from travel agencies 242 542 Ps. 2,356,287 Ps. 2,531,861
Schedule of accrued liabilities long term	2020 2019 Supplier services agreement Ps. 45,270 Ps. 55,905 Benefits from suppliers 16,847 19,439 Other 4,581 15,452 Ps. 66,698 Ps. 90,796
Schedule of other liabilities	Balance as of Balance as of January 1, Increase for December 31, 2020 the year Payments 2020 Aircraft and engine lease return obligation Ps. 1,852,688 Ps. 2,126,401 Ps. (1,474,605) Ps. 2,504,484 Guarantee deposit — 250,000 — 250,000 Employee profit sharing (Note 16) 24,097 20,810 (30,490) 14,417 Ps. 1,876,785 Ps. 2,397,211 Ps. (1,505,095) Ps. 2,768,901 Current maturities Ps. 101,218 Non-current Ps. 2,667,683 Balance as of Balance as of January 1, Increase for December 31, 2019 the year Payments 2019 Aircraft and engine lease return obligation Ps. 1,831,045 Ps. 725,506 Ps. (703,863) Ps. 1,852,688 Employee profit sharing (Note 16) 14,984 22,134 (13,021) 24,097 Ps. 1,846,029 Ps. 747,640 Ps. (716,884) Ps. 1,876,785 Current maturities Ps. 407,190 Non-current Ps. 1,469,595

Employee benefits (Tables)

Employee benefits (Tables)	12 Months Ended
	Dec. 31, 2020
Employee benefits
Schedule of analysis of net period cost	2020 2019 2018 Analysis of net period cost: Current service cost Ps. 8,449 Ps. 8,214 Ps. 4,977 Interest cost on benefit obligation 2,630 1,872 1,424 Net period cost Ps. 11,079 Ps. 10,086 Ps. 6,401
Schedule of changes in defined benefit obligation	2020 2019 Defined benefit obligation at January 1, Ps. 38,151 Ps. 18,153 Net period cost charged to profit or loss: Current service cost 8,449 8,214 Interest cost on benefit obligation 2,630 1,872 Remeasurement losses in other comprehensive income: Actuarial changes arising from changes in assumptions 2,651 10,192 Payments made (1,254) (225) Defined benefit obligation at December 31, Ps. 50,627 Ps. 38,206
Summary of significant assumptions used in the computation of the seniority premium obligations	2020 2019 2018 Financial: Discount rate 7.04 % 7.18 % 9.91 % Expected rate of salary increases 5.50 % 5.50 % 5.65 % Annual increase in minimum salary 4.00 % 4.00 % 4.15 % Biometric: Mortality (1) EMSSA 09, CEPAL* 2010 EL SALVADOR, CEPAL*2010 COSTA RICA EMSSA 09, CEPAL* 2010 EL SALVADOR, CEPAL*2010 COSTA RICA EMSSA 09 Disability (2) IMSS-97 IMSS-97 IMSS-97 (1) Mexican Experience of social security (EMSSA), Economic Commission for Latin America and the Caribbean (CEPAL for its Spanish acronym). (2) Mexican Experience of Instituto Mexicano del Seguro Social (IMSS).
Schedule of accruals for short-term employee benefits	2020 2019 Employee profit-sharing (Note 15c) Ps. 14,417 Ps. 24,097

Share-based payments (Tables)

Share-based payments (Tables)	12 Months Ended
	Dec. 31, 2020
Share-based payments
Schedule of movement in number of shares under share purchase payment plans	Number of Series A shares Outstanding as of January 1st, 2018 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 * Purchased during the year 2,694,600 Granted during the year — Exercised/vested during the year (959,614) Forfeited during the year (173,090) Outstanding as of December 31, 2019 5,115,191 Purchased during the year 3,159,763 Granted during the year — Exercised/vested during the year (2,142,426) Forfeited during the year (327,217) Outstanding as of December 31, 2020 5,805,311 * * These shares are presented as treasury shares in the consolidated statement of financial position as of December 31, 2020, 2019 and 2018.
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, 2018 Ps. 10,433,981 Ps. 5.31 Ps. 55,441 Granted during the year — — — Forfeited during the year — — — Exercised during the year (2,780,000) 5.31 (14,773) Outstanding as of December 31, 2019 7,653,981 5.31 40,668 Granted during the year — — — Forfeited during the year — — — Exercised during the year — — — Outstanding as of December 31, 2020 Ps. 7,653,981 Ps. 5.31 Ps. 40,668
Schedule of retention plan (benefit) expenses recognized	2020 2019 2018 Expense (benefit) arising from cash-settled share-based payments transactions Ps. 105,303 Ps. 40,724 Ps. (5,238) Expense arising from equity-settled share-based payments transactions 75,040 49,659 19,980 Total expense arising from share-based payments transactions Ps. 180,343 Ps. 90,383 Ps. 14,742
Share purchase plan
Share-based payments
Schedule of vesting period of shares granted	Number of Series A shares Vesting period 2,979,412 November 2020 – 2021 1,819,440 November 2021 – 2022 1,006,459 November 2022 – 2023 5,805,311
MIP II
Share-based payments
Schedule of vesting period of shares granted	Number of SARs Vesting date 3,391,020 February 2021 3,391,020 * * Includes forfeited SARs of 0,0 and 1,563,520, for the years ended December 31, 2020, 2019 and 2018, respectively.

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2020
Equity
Schedule of authorized shares	Shares Fixed Variable Class I Class II Total shares Series A shares (1) 10,478 1,077,914,326 1,077,924,804 Series B shares (1) 13,702 88,038,171 88,051,873 24,180 1,165,952,497 1,165,976,677 Treasury shares (Note 17) — (19,020,202) (19,020,202) (1) 24,180 1,146,932,295 1,146,956,475 (1) The number of forfeited shares as of December 31, 2020 were 327,217, which are include in treasury shares. 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) — (15,136,057) (15,136,057) (1) 24,180 996,716,440 996,740,620 (1) The number of forfeited shares as of December 31, 2019 were 294,541, which are include in treasury shares.
Schedule of basic and diluted earnings (loss) per share	At December 31, 2018 2020 2019 (Adjusted) Net (loss) income for the period Ps. (4,293,791) Ps. 2,639,063 Ps. (942,882) Weighted average number of shares outstanding (in thousands): Basic 1,021,561 1,011,877 1,011,877 Diluted 1,021,561 1,011,877 1,011,877 EPS - LPS: Basic (4.203) 2.608 (0.932) Diluted (4.203) 2.608 (0.932)

Income tax (Tables)

Income tax (Tables)	12 Months Ended
	Dec. 31, 2020
Income tax
Schedule of income tax in consolidated statements of operations	2020 2019 2018 Current year income tax expense Ps. (90,609) Ps. (281,491) Ps. (232,824) Deferred income tax benefit (expense) 1,496,793 (1) (813,340) (2) 582,644 (3) Total income tax benefit (expense) Ps. 1,406,184 Ps. (1,094,831) Ps. 349,820 (1) Includes translation effect by Ps.2,035 (2) Includes translation effect by Ps.(2,278) (3) Includes translation effect by Ps.2,680
Schedule of income tax in consolidated statements of OCI	2020 2019 2018 Deferred income tax related to items recognized in OCI during the year Net gain (loss) cash flow hedges Ps. 46,835 Ps. (74,820) Ps. 85,107 Remeasurement (loss) gain of employee benefits 794 3,058 (1,797) Deferred income tax charged to OCI Ps. 47,629 Ps. (71,762) Ps. 83,310
Schedule of reconciliation of corporate income tax rate to effective tax rate	2020 2019 2018 Statutory income tax rate 30.00 % 30.00 % 30.00 % Amendment tax return effects and other tax adjustments 0.92 % (0.51) % 0.05 % Inflation on furniture, intangible and equipment 0.29 % (0.48) % 2.08 % Inflation of tax losses 0.23 % (0.21) % 1.16 % Foreign countries difference with Mexican statutory rate (0.06) % 0.11 % (0.02) % Annual inflation adjustment (0.91) % (0.05) % 0.26 % Unrecorded deferred taxes on tax losses (1.29) % 0.27 % (3.96) % Non-deductible expenses (4.51) % 0.19 % (2.51) % 24.67 % 29.32 % 27.06 %
Schedule of consolidated deferred taxes	2020 2019 Consolidated Consolidated Consolidated Consolidated statement of statement of statement of statement of financial position operations financial position operations Deferred income tax assets: Lease liability Ps. 13,239,254 Ps. 1,084,140 Ps. 12,155,114 Ps. 313,137 Unearned transportation revenue 1,233,661 436,598 797,063 61,708 Extension lease agreement 773,443 314,100 459,343 (137,639) Tax losses available for offsetting against future taxable income 576,422 272,452 303,970 (5,350) Intangible 420,908 (25,941) 446,849 (13,741) Allowance for doubtful accounts 61,565 47,476 14,089 9,187 Employee benefits 15,191 2,934 11,463 2,958 Financial instruments 7,948 (22) (38,865) — Employee profit sharing 4,323 (2,904) 7,227 2,734 Provisions (91,253) (442,598) 351,345 60,655 Non derivative financial instruments (473,242) (477,471) 4,229 4,229 15,768,220 1,208,764 14,511,827 297,878 Deferred income tax liabilities: Right of use asset 10,292,753 55,824 10,236,929 672,311 Supplemental rent 1,878,865 171,916 1,706,949 111,430 Rotable spare parts, furniture and equipment, net 707,092 (177,384) 884,476 239,452 Inventories 83,402 (6,885) 90,287 1,392 Other prepayments 9,786 (17,942) 27,728 (4,329) Prepaid expenses and other assets (132,462) (311,523) 179,061 88,683 12,839,436 (285,994) 13,125,430 1,108,939 Ps. 2,928,784 Ps. 1,494,758 Ps. 1,386,397 Ps. (811,061)
Schedule of components of deferred taxes in the consolidated statement of financial position	2020 2019 Deferred tax assets Ps. 3,128,555 Ps. 1,542,536 Deferred tax liabilities (199,771) (156,139) Deferred tax assets, net Ps. 2,928,784 Ps. 1,386,397
Schedule of reconciliation of deferred tax liability, net	2020 2019 Opening balance as of January 1, Ps. 1,386,397 Ps. 2,269,220 Deferred income tax (expense) benefit during the current year recorded on profits 1,494,758 (811,061) Deferred income tax (expense) benefit during the current year recorded in accumulated other comprehensive income (loss) 47,629 (71,762) Closing balance as of December 31, Ps. 2,928,784 Ps. 1,386,397
Schedule of available tax carry-forwards	An analysis of the available tax losses carry-forward of the Company at December 31, 2020 is as follows: Year Historical Adjusted Total remaining Year of of loss loss tax loss Utilized amount expiration 2017 Ps. 1,067,836 Ps. 1,206,232 Ps. 217,393 Ps. 988,839 2018 92,604 92,604 78,849 13,755 2019 4,922 5,186 — 5,186 2020 863,847 878,533 — 878,533 2020 55,751 55,751 — 55,751 Ps. 2,084,960 Ps. 2,238,306 Ps. 296,242 Ps. 1,942,064 A breakdown of available tax loss carry-forward of Controladora and its subsidiaries at December 31, 2020 is as follows: Historical Adjusted Total loss tax loss Utilized remaining amount Comercializadora Ps. 42,777 Ps. 43,685 Ps. — Ps. 43,685 Concesionaria 1,875,180 2,027,302 217,393 1,809,909 Operaciones Volaris 18,648 18,965 — 18,965 Vuela Aviación 148,355 148,354 78,849 69,505 Ps. 2,084,960 Ps. 2,238,306 Ps. 296,242 Ps. 1,942,064 Unrecognized NOLs 20,657 Ps. 1,921,407 Tax rate 30 % Deferred income tax Ps. 576,422
Schedule of tax balances	2020 Adjusted contributed capital account ( Cuenta de capital de aportación or “CUCA”) Ps. 4,607,752 CUFIN* 3,241,275 * 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, 2020
Other operating income and expenses
Schedule of other operating income	2020 2019 2018 Gain on sale and leaseback (Note 12) Ps. 710,522 Ps. 284,759 Ps. 609,168 Loss on sale of rotable spare parts furniture and equipment (2,604) (8,954) (2,356) Other income 22,415 51,403 15,161 Ps. 730,333 Ps. 327,208 Ps. 621,973
Schedule of other operating expenses	2020 2019 2018 Administrative and operational support expenses Ps. 632,041 Ps. 581,181 Ps. 536,079 Technology and communications 383,648 381,055 385,841 Passenger services 87,850 65,477 70,337 Insurance 53,507 74,661 60,892 Others 194 10,553 5,949 Ps. 1,157,240 Ps. 1,112,927 Ps. 1,059,098

Finance income and cost (Tables

Finance income and cost (Tables)	12 Months Ended
	Dec. 31, 2020
Finance income and cost
Schedule of finance income	2020 2019 2018 Interest on cash and equivalents Ps. 93,122 Ps. 201,191 Ps. 152,437 Interest on asset backed trust notes 6,342 6,525 — Interest on recovery of guarantee deposits 2,047 83 166 Ps. 101,511 Ps. 207,799 Ps. 152,603
Schedule of finance cost	2020 2019 2018 Interest expense on lease liabilities and aircraft and engine lease return obligation Ps. 2,350,250 Ps. 2,128,162 Ps. 1,755,978 Financial instruments loss 448,559 — — Interest on asset backed trust notes 116,240 80,314 — Cost of letter credit notes 73,141 49,856 57,277 Bank fees and others 3,707 3,607 6,141 Interest on debts and borrowings* 16,368 1,660 56,916 Other finance costs 10,219 6,230 — Ps. 3,018,484 Ps. 2,269,829 Ps. 1,876,312
Schedule of capitalized interest	2020 2019 2018 Interest on debts and borrowings Ps. 400,406 Ps. 457,973 Ps. 414,836 Capitalized interest (Note 12) (384,038) (456,313) (357,920) Net interest on debts and borrowing in the consolidated statements of operations Ps. 16,368 Ps. 1,660 Ps. 56,916

Components of other comprehen_2

Components of other comprehensive (loss) income (Tables)	12 Months Ended
	Dec. 31, 2020
Components of other comprehensive (loss) income
Schedule of components of other comprehensive (loss) income	2020 2019 2018 Derivative financial instruments: Reclassification of call options and forwards during the year to profit or loss Ps. — Ps. — Ps. (455,009) Extrinsic value of changes on jet fuel Asian call options (11,993) 11,148 227,509 Extrinsic value of changes on jet fuel Zero cost collars (143,224) 256,515 (122,948) (Loss) gain of the matured foreign currency forward contracts — (14,241) 66,757 Loss of the interest rate Cap (900) (4,023) — Non derivative financial instruments (1,591,569) 14,096 — Total Ps. (1,747,686) Ps. 263,495 Ps. (283,691)

Commitments and contingencies (

Commitments and contingencies (Tables)	12 Months Ended
	Dec. 31, 2020
Commitments and contingencies
Schedule of committed expenditures	Commitment Commitment expenditures expenditures in U.S. equivalent in dollars Mexican pesos (1) 2021 US$ 40,213 Ps. 802,197 2022 138,919 2,771,253 2023 265,836 5,303,083 2024 705,331 14,070,437 2025 and thereafter 3,221,596 64,266,652 US$ 4,371,895 Ps. 87,213,622 (1) Using the exchange rate as of December 31, 2020 of Ps.19.9487.
Schedule of future minimum lease payments	Aircraft sale prices estimated in U.S. dollars in Mexican pesos (1) 2021 US$ 209,500 Ps. 4,179,253 2022 547,328 10,918,482 US$ 756,828 Ps. 15,097,735 (1) Using the exchange rate as of December 31, 2020 of Ps.19.9487.
Summary of future lease payments from sale and leaseback	Aircraft leases in U.S. dollars in Mexican pesos (1) 2021 US$ 9,720 Ps. 193,901 2022 47,972 956,979 2023 63,222 1,261,197 2024 63,222 1,261,197 2025 and thereafter 574,529 11,461,107 US$ 758,665 Ps. 15,134,381 (1) Using the exchange rate as of December 31, 2020 of Ps.19.9487.

Operating segments (Tables)

Operating segments (Tables)	12 Months Ended
	Dec. 31, 2020
Operating segments
Schedule of geographic segments	2020 2019 2018 Operating revenues: Domestic (Mexico) Ps. 16,572,198 Ps. 24,594,797 Ps. 18,493,476 International: United States of America and Central America* 5,998,615 10,230,824 8,811,674 Non-derivative financial instruments (411,222) (72,949) — Total operating revenues Ps. 22,159,591 Ps. 34,752,672 Ps. 27,305,150 *United States of America represents approximately 27%, 29% and 31% of total revenues from external customers in 2020, 2019 and 2018, respectively.

Description of the business a_4

Description of the business and summary of significant accounting policies - Relevant events (Details) $ in Billions	Dec. 11, 2020$ / sharesshares	Feb. 24, 2020	Jun. 20, 2019MXN ($)item	Feb. 16, 2018shares	Nov. 10, 2016	Feb. 17, 2010	May 09, 2005
Description of the business and summary of significant accounting policies
Notes issued | $			$ 1.5
Authorized amount under the program | $			$ 3
Maturity of notes			5 years
Term of authorization to provide air transportation services		20 years
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
28-day TIIE
Description of the business and summary of significant accounting policies
Basis points			1.75%
Asset backed trust notes ("CEBUR"), in Mexican pesos
Description of the business and summary of significant accounting policies
Number of notes issued | item			15,000,000
Notes issued | $			$ 1.5
Authorized amount under the program | $			$ 3
Maturity of notes			5 years
Basis points			1.75%
Series B shares
Description of the business and summary of significant accounting policies
Conversion of equivalent number of shares				45,968,598
Series A shares
Description of the business and summary of significant accounting policies
Number of shares per CPO	1
American Depositary Shares
Description of the business and summary of significant accounting policies
Weighted average share price | $ / shares	$ 11.25
Number of CPOs per ADS	10
Primary follow-on equity offering
Description of the business and summary of significant accounting policies
Number of shares offered	134,000,000
Over-allotment | American Depositary Shares
Description of the business and summary of significant accounting policies
Number of shares issued	20,100,000

Description of the business a_5

Description of the business and summary of significant accounting policies - Subsidiaries (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Concesionaria
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Volaris Costa Rica
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Vuela, S.A.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Vuela El Salvador, S.A. de C.V.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Comercializadora Volaris, S.A. de C.V.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Servicios Earhart, S.A.
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Servicios Corporativos
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Servicios Administrativos
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Loyalty Program
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Viajes Vuela
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Deutsche Bank Mexico Sa Trust 1710
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Deutsche Bank Mexico Sa Trust 1711
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Irrevocable Administrative Trust number F/307750
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Irrevocable Administrative Trust number F/745291
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Irrevocable Administrative Trust number CIB/3081
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	100.00%
Irrevocable Administrative Trust number CIB/3249
Subsidiaries
Proportion of ownership interest in subsidiary	100.00%	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, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Revenue recognition
Discounts, payment incentives, bonuses or other variable considerations		$ 0
Fare revenues	$ 645,314	12,873,174	$ 23,129,991	$ 18,487,858
Other passenger revenues	431,777	8,613,398	10,569,208	7,892,497
Passenger revenues	1,077,091	21,486,572	33,699,199	26,380,355
Other non-passenger revenues (Note 1d)	44,231	882,360	897,586	697,357
Cargo	10,120	201,881	228,836	227,438
Total		22,570,813	34,825,621
Non-derivatives financial instruments	(20,614)	(411,222)	(72,949)
Operating revenues	$ 1,110,828	22,159,591	34,752,672	27,305,150
Transactions from unearned transportation revenues
January 1,		3,679,926	2,438,516
Deferred		23,657,563	34,940,609
Recognized in revenue during the year		(21,486,572)	(33,699,199)
December 31,		5,850,917	3,679,926	2,438,516
Non-ticket revenues
Expected credit losses on accounts receivable		13,664	40,393
Revenue related to Vouchers reedemed by passengers		1,720,939
Domestic (Mexico)
Revenue recognition
Operating revenues		16,572,198	24,594,797	18,493,476
Domestic (Mexico) | At the flight time
Revenue recognition
Fare revenues		8,455,647	15,833,878	12,336,095
Other passenger revenues		6,920,141	7,531,725	5,182,572
Passenger revenues		15,375,788	23,365,603	17,518,667
Other non-passenger revenues (Note 1d)		875,610	888,353	685,219
Cargo		196,349	221,375	221,324
Total		16,447,747	24,475,331
Operating revenues				18,425,210
Domestic (Mexico) | At the sale
Revenue recognition
Other passenger revenues		124,450	119,466	68,264
Passenger revenues		124,450	119,466	68,264
Total		124,450	119,466
Operating revenues				68,264
International | At the flight time
Revenue recognition
Fare revenues		4,417,527	7,296,113	6,151,763
Other passenger revenues		1,536,206	2,865,555	2,598,375
Passenger revenues		5,953,733	10,161,668	8,750,138
Other non-passenger revenues (Note 1d)		6,750	9,233	12,138
Cargo		5,532	7,461	6,114
Total		5,966,015	10,178,362
Operating revenues				8,768,390
International | At the sale
Revenue recognition
Other passenger revenues		32,601	52,462	43,286
Passenger revenues		32,601	52,462	43,286
Total		$ 32,601	$ 52,462
Operating revenues				$ 43,286
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, 2020
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, 2020MXN ($)agreementaircraft	Dec. 31, 2019MXN ($)agreementengineaircraft	Dec. 31, 2018MXN ($)agreementengineaircraft
Aircraft, rotable spare parts, furniture and equipment, net
Maintenance deposits expensed as supplemental rent	$ 421,030	$ 295,720	$ 299,601
Number of aircraft added to fleet | aircraft	7	7	10
Number of aircraft with lease term extended | agreement	2	1	2
Number of engine agreements for which lease term extended | engine		1	2
Maintenance deposits expensed to contingent rent prior to lease extensions	$ 0
Length of time before routine aircraft and engine maintenance is required	22 months
Depreciation	$ 797,827	$ 587,849	$ 427,756
Capitalized borrowing costs	$ 384,038	$ 456,313	$ 357,920
Rate used to determine amount of borrowing cost	3.58%	5.10%	4.41%
Flight equipment
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 73,952	$ 84,888
Constructions and improvements
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	16,379	14,721
Computer equipment
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 7,613	7,074
Annual depreciation rate	25.00%
Workshop tools
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 2,374	1,938
Annual depreciation rate	33.30%
Electric power equipment
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 1,373	1,084
Annual depreciation rate	10.00%
Communications equipment
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 1,095	933
Annual depreciation rate	10.00%
Workshop machinery and equipment
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 1,549	1,044
Annual depreciation rate	10.00%
Motorized transport equipment platform
Aircraft, rotable spare parts, furniture and equipment, net
Annual depreciation rate	25.00%
Service carts on board
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 558	278
Annual depreciation rate	20.00%
Office furniture and equipment
Aircraft, rotable spare parts, furniture and equipment, net
Depreciation	$ 5,768	5,854
Annual depreciation rate	10.00%
Leasehold improvements to flight equipment
Aircraft, rotable spare parts, furniture and equipment, net
Additions	$ 646,219	659,082
Amortization of major maintenance leasehold improvement	652,091	450,371
Depreciation	684,633	469,694
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 | Flight equipment
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 | Flight equipment
Aircraft, rotable spare parts, furniture and equipment, net
Annual depreciation rate	16.70%

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	12 Months Ended
	Dec. 31, 2020$ / $Q / $	Dec. 31, 2020$ / $₡ / $	Dec. 31, 2020USD ($)$ / $	Dec. 31, 2020MXN ($)$ / $	Dec. 31, 2019$ / $Q / $	Dec. 31, 2019$ / $₡ / $	Dec. 31, 2019$ / $USD ($)	Dec. 31, 2019MXN ($)$ / $	Dec. 31, 2018$ / $Q / $	Dec. 31, 2018$ / $₡ / $	Dec. 31, 2018MXN ($)$ / $	Apr. 29, 2021$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Description of the business and summary of significant accounting policies
Average exchange rate for year	7.7292	588.4240	21.4961		7.7066	590.9574	19.2618		7.5337	580.8534
Exchange rate as of end of the year	19.9487	19.9487	19.9487	19.9487	18.8452	18.8452	18.8452	18.8452	19.6829	19.6829	19.6829	19.9785	7.8095	615.7800	19.9487	7.6988	573.4400	18.8452	7.7440	609.6100
Exchange differences on translation of foreign operations			$ 1,202,000	$ 23,970				$ 8,045			$ 22,156

Description of the business _10

Description of the business and summary of significant accounting policies - Employee benefits (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands	Nov. 06, 2014	Apr. 30, 2018$ / shares	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)$ / shares	Dec. 31, 2019$ / shares	Dec. 31, 2019MXN ($)$ / shares	Dec. 31, 2018MXN ($)$ / shares
Share-based payments
Termination benefits provision				$ 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			$ 173,113	$ 3,453,382		3,600,762	$ 3,125,393
Quarterly incentive bonuses
Share-based payments
Salaries and benefits				25,918		62,825	67,680
Short-term benefit plan for certain key personnel
Share-based payments
Salaries and benefits				0		80,634	50,000
Restricted Stock Units
Share-based payments
Salaries and benefits				75,040		49,659	19,980
SARs - cash settled
Share-based payments
Salaries and benefits				(1,901)		2,964	(186)
Vesting period	3 years
MIP I
Share-based payments
Exercise price | $ / shares					$ 5.31
MIP II
Share-based payments
Salaries and benefits				$ 107,204
Salaries and benefits						$ 37,760	$ (5,052)
Vesting period			5 years	5 years
BODIP
Share-based payments
Vesting period		4 years
Exercise price | $ / shares		$ 16.12		$ 9.74		$ 16.80	$ 16.12
Employee profit sharing
Share-based payments
Salaries and benefits				$ 13,458		$ 22,134	$ 14,106

Description of the business _11

Description of the business and summary of significant accounting policies - Leases (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of detailed information about property, plant and equipment [line items]
Impairment charges recorded in respect of right-of-use asset	$ 0	$ 0	$ 0
Variable rent	$ 1,428,179	$ 680,964	$ 659,106
Aircraft and engines
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives of the assets	18 years
Spare engines
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives of the assets	14 years
Minimum | Buildings leases
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives of the assets	1 year
Maximum | Buildings leases
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives of the assets	10 years
Maximum | Maintenance component
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful lives of the assets	8 years

Description of the business _12

Description of the business and summary of significant accounting policies - Derivative and non-derivative financial instruments and hedge accounting and Operating segments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020MXN ($)segment	Dec. 31, 2019segment	Dec. 31, 2018segment
Description of the business and summary of significant accounting policies
Number of operating segments	1
Number of geographic segments	2	2	2
Ineffective portion with respect to derivative financial instruments | $	$ 448.6

Description of the business _13

Description of the business and summary of significant accounting policies - Additional details (Details) $ in Thousands, $ in Thousands	1 Months Ended			12 Months Ended
	Dec. 31, 2020USD ($)	May 31, 2020	Apr. 30, 2020	Dec. 31, 2020USD ($)item	Dec. 31, 2020MXN ($)	Dec. 31, 2019USD ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)
IFRS Statement [Line Items]
Cash and cash equivalents.	$ 506,468			$ 506,468	$ 10,103,385	$ 400,025	$ 7,979,972	$ 5,862,942	$ 6,950,879
Covid [Member]
IFRS Statement [Line Items]
Maximum Reduction in Available Seat Miles		90.00%	80.00%
Percentage of Available Seat Miles	100.00%
Number Of Suppliers With Whom The Entity Negotiated Cost Reductions | item				360
Savings Through Cost Reductions And Deferral Agreements With Suppliers | $	$ 200,000			$ 200,000

Significant accounting judgme_2

Significant accounting judgments, estimates and assumptions (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Significant accounting judgments, estimates and assumptions
Tax loss carry-forwards used	$ 0	$ 214,460	$ 154,353

Financial instruments and ris_3

Financial instruments and risk management - Jet fuel price risk (Details) gal in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)gal$ / gal	Dec. 31, 2019MXN ($)gal$ / gal	Dec. 31, 2018MXN ($)	Jun. 30, 2019$ / gal
Jet fuel price risk
Fair value of derivative financial liabilities		$ (9,657)
Intrinsic value recycled to the fuel cost		1,271,462
Loss from derivatives financial instruments recognized in consolidated statements of operations		$ (1,306,557)	$ (67,629)	$ 455,009
Jet fuel
Jet fuel price risk
Percentage of operating expenses	28.00%	28.00%	38.00%	38.00%
Intrinsic value recycled to the fuel cost			$ 61,069
Fuel cost
Jet fuel price risk
Intrinsic value recycled to the fuel cost		$ 835,884	$ 9,477	$ 9,477
Finance cost
Jet fuel price risk
Intrinsic value recycled to the fuel cost		$ 435,578
Jet fuel Asian call options contracts
Jet fuel price risk
Notional volume (in gallons) | gal		23,967	13,492
Fair value of derivative financial assets		$ 206	$ 0
Cost of hedging recognized in other comprehensive income		21,650	$ (133,567)	134,096
Jet fuel Asian call options contracts | Jet fuel
Jet fuel price risk
Intrinsic value recycled to the fuel cost		$ 33,627		$ 402,493
Jet fuel Asian call options contracts | Within one year
Jet fuel price risk
Notional volume (in gallons) | gal		7,280
Strike price agreed rate | $ / gal		1.90
Approximate percentage of hedge (of expected consumption value)		3.00%
Jet fuel Asian call options contracts | Within six months
Jet fuel price risk
Notional volume (in gallons) | gal		7,280
Strike price agreed rate | $ / gal		1.90
Approximate percentage of hedge (of expected consumption value)		6.00%
Jet fuel Asian call options contracts | Fuel cost | Jet fuel
Jet fuel price risk
Intrinsic value recycled to the fuel cost		$ 20,646
Jet fuel Asian call options contracts | Finance cost | Jet fuel
Jet fuel price risk
Intrinsic value recycled to the fuel cost		$ 12,981
Jet fuel Zero-Cost collars
Jet fuel price risk
Notional volume (in gallons) | gal		81,646	70,136
Fair value of derivative financial assets			$ 133,567
Fair value of derivative financial liabilities		$ (9,657)
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	$ 160
Effect of downward movement in spot price on accumulated other comprehensive income	$ (160)
Unwind of Zero cost collar		$ 42,644
Jet fuel Zero-Cost collars | Within one year
Jet fuel price risk
Notional volume (in gallons) | gal		7,556	56,644
Approximate percentage of hedge (of expected consumption value)		3.00%	20.00%
Jet fuel Zero-Cost collars | Within one year | Jet fuel | Minimum
Jet fuel price risk
Strike price agreed rate | $ / gal		1.23	1.6400
Jet fuel Zero-Cost collars | Within one year | Jet fuel | Maximum
Jet fuel price risk
Strike price agreed rate | $ / gal		1.93	1.8200
Jet fuel Zero-Cost collars | Within six months
Jet fuel price risk
Notional volume (in gallons) | gal		7,556	34,480
Approximate percentage of hedge (of expected consumption value)		6.00%	25.00%
Jet fuel Zero-Cost collars | Within six months | Jet fuel | Minimum
Jet fuel price risk
Strike price agreed rate | $ / gal		1.23	1.6300
Jet fuel Zero-Cost collars | Within six months | Jet fuel | Maximum
Jet fuel price risk
Strike price agreed rate | $ / gal		1.93			1.8200
Jet fuel Zero-Cost collars | Between six months and one year
Jet fuel price risk
Notional volume (in gallons) | gal			22,164
Approximate percentage of hedge (of expected consumption value)			15.00%
Jet fuel Zero-Cost collars | Between six months and one year | Jet fuel | Minimum
Jet fuel price risk
Strike price agreed rate | $ / gal			1.6500
Jet fuel Zero-Cost collars | Between six months and one year | Jet fuel | Maximum
Jet fuel price risk
Strike price agreed rate | $ / gal			1.8100
All-in | Within one year
Jet fuel price risk
Approximate percentage of hedge (of expected consumption value)		6.00%	20.00%
All-in | Within six months
Jet fuel price risk
Approximate percentage of hedge (of expected consumption value)		12.00%	25.00%
All-in | Between six months and one year
Jet fuel price risk
Approximate percentage of hedge (of expected consumption value)			15.00%

Financial instruments and ris_4

Financial instruments and risk management - Foreign currency risk (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Foreign currency risk
Percentage of total collections denominated in U.S. dollars	44.00%	43.00%	38.00%
United States of America and Central America
Foreign currency risk
Percentage of revenues	27.00%	29.00%	32.00%

Financial instruments and ris_5

Financial instruments and risk management - Foreign exchange on and off-balance sheet exposure (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019MXN ($)$ / $	Dec. 31, 2018MXN ($)$ / $	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)
Assets
Cash and cash equivalents							$ 506,468,000	$ 10,103,385			$ 400,025,000	$ 7,979,972			$ 5,862,942	$ 6,950,879
Other accounts receivable, net							28,104,000	560,640				923,000
Total assets							3,418,223,000	68,189,113				63,295,127
Liabilities
Financial debt (Note 5)								5,354,633				4,975,969			3,523,198
Lease liabilities								44,130,542				40,517,045			$ 39,565,146
Suppliers							112,275,000	2,239,736				1,597,099
Derivative financial instruments								9,657
Total liabilities							$ 3,278,055,000	$ 65,392,928				$ 57,765,444
Exchange rate	18.8452	19.6829	19.9785	19.9487	7.8095	615.7800	19.9487		7.6988	573.4400	18.8452		7.7440	609.6100
Unrealized gains relating to the foreign currency forward contracts is included in OCI		$ 14,241
Net gains on foreign currency forward contacts	$ 4,199
Net loss on foreign currency forward contract		$ 52,516
Lease liability designated as hedging forecasted revenues over the remaining lease term											$ 2,100,000,000
Hedging relationship for foreign exchange rate with non-derivative financial instruments, which represent a portion of the financial assets denominated in USD							$ 410,000,000
Recognized leasing liabilities, which have been designated as hedging instruments, forecasted revenues over the remaining lease term							1,500,000,000				1,700,000,000
Recognized financial assets designated under hedging strategy							60,500,000				166,700,000
Foreign currency
Assets
Cash and cash equivalents							495,612,000				373,099,000
Other accounts receivable, net							39,997,000				23,620,000
Guarantee deposits							479,566,000				437,499,000
Derivative financial instruments							10,000				7,088,000
Total assets							1,015,185,000				841,306,000
Liabilities
Financial debt (Note 5)							183,806,000				176,927,000
Lease liabilities							2,334,153,000				2,263,849,000
Suppliers							174,553,000				76,471,000
Other taxes and fees payable							16,105,000				22,486,000
Derivative financial instruments							484,000
Total liabilities							2,709,101,000				2,539,733,000
Net foreign currency position							$ (1,693,916,000)				$ (1,698,427,000)
Aircraft rental expense | Foreign currency forward contract
Liabilities
Percentage of expense hedged		20.00%

Financial instruments and ris_6

Financial instruments and risk management - Foreign currency sensitivity (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, entity's own equity instruments [line items]
Net (loss) income for the period	$ (215,242)	$ (4,293,791)	$ 2,639,063	$ (942,882)
Covid [Member]
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, entity's own equity instruments [line items]
Net (loss) income for the period		111
Comprehensive income		$ 94
USD | Foreign currency | Fair value
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, entity's own equity instruments [line items]
Percentage of reasonably possible increase in exchange rate	5.00%	5.00%	5.00%
Percentage of reasonably possible decrease in exchange rate	(5.00%)	(5.00%)	(5.00%)
Effect on profit before tax from reasonably possible increase in exchange rate		$ (253,763)	$ (155,593)
Effect on profit before tax from reasonably possible decrease in exchange rate		$ 253,763	$ 155,593

Financial instruments and ris_7

Financial instruments and risk management - Interest rate risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020MXN ($)item	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Interest rate risk
Derivative financial liabilities	$ 9,657
Loss on cash flow hedges	1,306,557	$ 67,629	$ (455,009)
Interest rate swap contracts
Interest rate risk
Derivative financial liabilities	$ 326	$ 2,695
28-day TIIE
Interest rate risk
Spread on interest rate basis		3.00%
Number of caplets | item	59
28-day TIIE | Maximum
Interest rate risk
Spread on interest rate basis	10.00%

Financial instruments and ris_8

Financial instruments and risk management - Maturity analysis for financial liabilities (Details) - MXN ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	$ 51,995,295
Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	8,127,093
Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	43,868,202
Jet fuel Zero-Cost collars
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	9,657
Jet fuel Zero-Cost collars | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	9,657
Lease liabilities
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		$ 47,378,242
Lease liabilities | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		7,159,554
Lease liabilities | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		40,218,688
Aircraft, engines, land and buildings leases
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	44,130,542
Aircraft, engines, land and buildings leases | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	6,484,092
Aircraft, engines, land and buildings leases | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	37,646,450
Aircraft, engines, land and buildings leases | Lease liabilities
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		40,517,045
Aircraft, engines, land and buildings leases | Lease liabilities | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		4,720,505
Aircraft, engines, land and buildings leases | Lease liabilities | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		35,796,540
Aircraft and engine lease return obligation
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	2,504,484
Aircraft and engine lease return obligation | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	86,801
Aircraft and engine lease return obligation | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	2,417,683
Aircraft and engine lease return obligation | Lease liabilities
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		1,852,688
Aircraft and engine lease return obligation | Lease liabilities | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		383,093
Aircraft and engine lease return obligation | Lease liabilities | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments		1,469,595
Revolving line of credit
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	3,650,612	3,308,509
Revolving line of credit | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	1,096,543	1,855,956
Revolving line of credit | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	2,554,069	1,452,553
Short-term working capital facilities
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	200,000	200,000
Short-term working capital facilities | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	200,000	200,000
Asset backed trust notes ("CEBUR"), in Mexican pesos
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	1,500,000	1,500,000
Asset backed trust notes ("CEBUR"), in Mexican pesos | Within one year
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	250,000
Asset backed trust notes ("CEBUR"), in Mexican pesos | Between one year and five years
Liquidity risk
Contractual principal payments on financial liabilities and derivative financial instruments	$ 1,250,000	$ 1,500,000

Fair value measurements - Carry

Fair value measurements - Carrying amount and fair value (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair value measurements
Carrying amount of derivative financial assets	$ 532	$ 136,262
Fair value of derivative financial assets	532	136,262
Fair value of financial liabilities	(9,657)
Net carrying amount	(5,359,737)	(4,872,247)
Net fair value	(5,536,457)	(5,058,054)
Transfers of assets from level 1 to level 2	0
Transfers of assets from level 2 to level 1	0
Transfers of liabilities from level 1 to level 2		0
Transfers of liabilities from level 2 to level 1		0
Financial debt
Fair value measurements
Carrying amount of financial liabilities	(5,350,612)	(5,008,509)
Fair value of financial liabilities	(5,527,332)	(5,194,316)
Interest-bearing loans and borrowings
Fair value measurements
Fair value of financial liabilities	(5,527,332)	(5,194,316)
Non derivative financial instruments
Fair value measurements
Carrying amount of financial liabilities	(9,657)
Fair value of financial liabilities	(9,657)
Jet fuel Asian call options contracts
Fair value measurements
Carrying amount of derivative financial assets	206
Fair value of derivative financial assets	206	133,567
Interest rate Cap
Fair value measurements
Fair value of derivative financial assets	326	2,695
Level 2
Fair value measurements
Fair value of financial liabilities	(9,657)
Net fair value	(5,536,457)	(5,058,054)
Level 2 | Interest-bearing loans and borrowings
Fair value measurements
Fair value of financial liabilities	(5,527,332)	(5,194,316)
Level 2 | Jet fuel Asian call options contracts
Fair value measurements
Fair value of derivative financial assets	206	133,567
Level 2 | Interest rate Cap
Fair value measurements
Fair value of derivative financial assets	$ 326	$ 2,695

Fair value measurements - Loss

Fair value measurements - Loss gain from financial instruments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / $	Dec. 31, 2020MXN ($)$ / $	Dec. 31, 2019MXN ($)$ / $	Dec. 31, 2018MXN ($)$ / $	Apr. 29, 2021$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		$ (1,306,557)	$ (67,629)	$ 455,009
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income	$ (87,609,000)	$ (1,747,686)	$ 263,495	$ (283,691)
Exchange rate	19.9487	19.9487	18.8452	19.6829	19.9785	7.8095	615.7800	19.9487	7.6988	573.4400	18.8452	7.7440	609.6100
Foreign currency forward contract
gain (loss) on financial instruments
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income			$ (14,241)	$ 14,241
Jet fuel Asian call options contracts
gain (loss) on financial instruments
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		$ (11,993)	11,148	(174,984)
Jet fuel Zero cost collars
gain (loss) on financial instruments
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		(143,224)	256,515	(122,948)
Interest rate Cap
gain (loss) on financial instruments
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		(900)	(4,023)
Non derivative financial instruments
gain (loss) on financial instruments
Net (loss) gain on cash flow hedges recognized in consolidated statements of comprehensive income		(1,591,569)	14,096
Fuel cost | Jet fuel Asian call options contracts
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		(20,646)	(61,069)	402,493
Fuel cost | Jet fuel Zero cost collars
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		(835,884)	(9,477)
Finance cost | Jet fuel Asian call options contracts
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		(12,981)
Finance cost | Jet fuel Zero cost collars
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		(435,578)
Finance cost | Interest rate Cap
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations		$ (1,468)	(1,282)
Aircraft and engine rent expenses | Foreign currency forward contract
gain (loss) on financial instruments
Loss from derivatives financial instruments recognized in consolidated statements of operations			$ 4,199	$ 52,516

Financial assets and liabilit_3

Financial assets and liabilities - Financial assets (Details) $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Financial assets
Total financial assets		$ 532	$ 136,262
Current	$ 10	206	133,567
Non-current	$ 16	326	2,695
Jet fuel Asian call options contracts
Financial assets
Total financial assets		206
Jet fuel Zero-Cost collars
Financial assets
Total financial assets			133,567
Interest rate cap
Financial assets
Total financial assets		$ 326	$ 2,695

Financial assets and liabilit_4

Financial assets and liabilities - Short-term and long-term debt (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Jun. 20, 2019MXN ($)	Dec. 31, 2018MXN ($)
Short-term and long-term debt
Amortized transaction costs		$ (22,472)		$ (15,542)
Accrued interest and other financial cost		30,061		19,563
Financial debt without unamortized cost	$ 5,370,175
Total financial debt		4,975,969		5,354,633		$ 3,523,198
Less: Short-term maturities		2,086,017	$ 78,144	1,558,884		1,212,259
Long-term		$ 2,889,952	$ 190,276	3,795,749		$ 2,310,939
Nominal amount of working capital facility (in USD)					$ 1,500,000
28-day TIIE
Short-term and long-term debt
Spread on interest rate basis		3.00%
Within one year
Short-term and long-term debt
Total financial debt				1,566,106
Between one year and two years
Short-term and long-term debt
Total financial debt				3,054,069
Between two and three years
Short-term and long-term debt
Total financial debt				500,000
Between three and four years
Short-term and long-term debt
Total financial debt				250,000
Revolving line of credit
Short-term and long-term debt
Financial debt excluding accrued interest		$ 3,308,509		3,650,612
Total financial debt				$ 3,666,698
Interest rate basis	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%
Revolving line of credit | Within one year
Short-term and long-term debt
Total financial debt				$ 1,112,629
Revolving line of credit | Between one year and two years
Short-term and long-term debt
Total financial debt				2,554,069
Asset backed trust notes ("CEBUR"), in Mexican pesos
Short-term and long-term debt
Financial debt	$ 1,500,000	$ 1,459,871
Total financial debt				$ 1,502,605
Spread on interest rate basis					1.75%
Nominal amount of working capital facility (in USD)					$ 1,500,000
Asset backed trust notes ("CEBUR"), in Mexican pesos | 28-day TIIE
Short-term and long-term debt
Interest rate basis	TIIE 28 days plus 175 basis points	TIIE 28 days plus 175 basis points
Spread on interest rate basis		1.75%	1.75%	1.75%
Asset backed trust notes ("CEBUR"), in Mexican pesos | Within one year
Short-term and long-term debt
Total financial debt				$ 252,605
Asset backed trust notes ("CEBUR"), in Mexican pesos | Between one year and two years
Short-term and long-term debt
Total financial debt				500,000
Asset backed trust notes ("CEBUR"), in Mexican pesos | Between two and three years
Short-term and long-term debt
Total financial debt				500,000
Asset backed trust notes ("CEBUR"), in Mexican pesos | Between three and four years
Short-term and long-term debt
Total financial debt				250,000
Short-term working capital facility with Banco Sabadell S.A.
Short-term and long-term debt
Financial debt excluding accrued interest		$ 200,000		200,000
Total financial debt				$ 200,872
Interest rate basis	TIIE 28 days plus a 300 basis points	TIIE 28 days plus a 300 basis points
Spread on interest rate basis			300.00%	300.00%
Short-term working capital facility with Banco Sabadell S.A. | Within one year
Short-term and long-term debt
Total financial debt				$ 200,872
Maximum | 28-day TIIE
Short-term and long-term debt
Spread on interest rate basis			10.00%	10.00%

Financial assets and liabilit_5

Financial assets and liabilities - Aircraft financing and Notes (Details) $ in Thousands	Jun. 20, 2019MXN ($)item	Dec. 31, 2020MXN ($)aircraft	Dec. 31, 2019MXN ($)aircraft	Dec. 31, 2018MXN ($)aircraft
Aircraft financing
Number of aircraft incorporated to fleet | aircraft		7	7	10
Notes issued	$ 1,500,000
Authorized amount under the program	$ 3,000,000
Maturity of notes	5 years
Financial liabilities		$ 5,354,633	$ 4,975,969	$ 3,523,198
Revolving line of credit
Aircraft financing
Basis points		2.60%	2.60%
Financial liabilities		$ 3,666,698
Asset backed trust notes ("CEBUR"), in Mexican pesos
Aircraft financing
Number of notes issued | item	15,000,000
Notes issued	$ 1,500,000
Authorized amount under the program	$ 3,000,000
Maturity of notes	5 years
Basis points	1.75%
Financial liabilities		$ 1,502,605
Short-term working capital facility with Banco Sabadell S.A.
Aircraft financing
Basis points		300.00%
Financial liabilities		$ 200,872
Within one year
Aircraft financing
Financial liabilities		1,566,106
Within one year | Revolving line of credit
Aircraft financing
Financial liabilities		1,112,629
Within one year | Asset backed trust notes ("CEBUR"), in Mexican pesos
Aircraft financing
Financial liabilities		252,605
Within one year | Short-term working capital facility with Banco Sabadell S.A.
Aircraft financing
Financial liabilities		200,872
Between one year and two years
Aircraft financing
Financial liabilities		3,054,069
Between one year and two years | Revolving line of credit
Aircraft financing
Financial liabilities		2,554,069
Between one year and two years | Asset backed trust notes ("CEBUR"), in Mexican pesos
Aircraft financing
Financial liabilities		500,000
Between two and three years
Aircraft financing
Financial liabilities		500,000
Between two and three years | Asset backed trust notes ("CEBUR"), in Mexican pesos
Aircraft financing
Financial liabilities		500,000
Between three and four years
Aircraft financing
Financial liabilities		250,000
Between three and four years | Asset backed trust notes ("CEBUR"), in Mexican pesos
Aircraft financing
Financial liabilities		$ 250,000
28-day TIIE
Aircraft financing
Basis points			3.00%
Debt service coverage ratio prior computation period of debt service		6 months
Consecutive days for event of retention		90 days
Joint obligor as percentage of EBITDA		85.00%
28-day TIIE | Asset backed trust notes ("CEBUR"), in Mexican pesos
Aircraft financing
Basis points		1.75%	1.75%
28-day TIIE | Minimum
Aircraft financing
Debt service coverage ratio		2.50
28-day TIIE | Maximum
Aircraft financing
Basis points		10.00%

Financial assets and liabilit_6

Financial assets and liabilities - Line of credit (Details) - MXN ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financial assets and liabilities
Total available credit lines	$ 9,256,978	$ 9,005,008
Available credit lines related to letters of credit	2,405,640	2,355,650
Available credit lines related to financial debt	6,851,338	6,649,358
Undrawn credit of financial debt	1,500,726	1,640,849
Undrawn credit of letters of credit	$ 214,012	$ 86,066

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, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Financial assets and liabilities
Net cash flows, current		$ (1,231,695)	$ (633,609)
Net cash flows, non-current		1,374,678	2,273,143
Net cash flows, total		142,983	1,639,534
Accrued Interest, Current		(10,498)	13,698
Accrued interest		(10,498)	13,698
Foreign exchange movement, current		(32,491)	(41,173)
Foreign exchange movement, non-current		231,612	(122,466)
Foreign exchange movement, total		199,121	(163,639)
Reclassification and other, current		747,551	1,534,842
Reclassification and other, non-current		(747,551)	(1,534,842)
Other, Non current		47,058	(36,822)
Other, Total		47,058	(36,822)
Current interest-bearing loans and borrowings, end of the year	$ 78,144	1,558,884	2,086,017
Non-current interest-bearing loans and borrowings, end of the year	$ 190,276	3,795,749	2,889,952
Total liabilities from financing activities, end of the year		$ 5,354,633	$ 4,975,969

Financial assets and liabilit_8

Financial assets and liabilities - Other financial liabilities (Details) - Dec. 31, 2020 $ in Thousands, $ in Thousands	USD ($)	MXN ($)
Other financial liabilities
Total financial liabilities		$ 9,657
Current	$ 484	9,657
Zero cost collar options
Other financial liabilities
Total financial liabilities		$ 9,657

Cash and cash equivalents (Deta

Cash and cash equivalents (Details) $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019USD ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2017MXN ($)
Cash and cash equivalents
Short-term investments		$ 3,068,618		$ 3,231,125
Cash in banks		6,907,295		4,612,927
Cash on hand		36,432		44,880
Restricted funds held in trust related to debt service reserves		91,040		91,040
Total cash and cash equivalents	$ 506,468	$ 10,103,385	$ 400,025	$ 7,979,972	$ 5,862,942	$ 6,950,879

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, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Disclosure of transactions between related parties
Due from related parties	$ 3,641	$ 72,629	$ 23,442
Due to related parties		124,993	58,554
Frontier Airlines Inc
Disclosure of transactions between related parties
Due from related parties		72,629	23,442
Due to related parties		39	16,246
Term	30 days
One Link, S.A. de C.V.
Disclosure of transactions between related parties
Due to related parties		0	39,838
Term	30 days
Grupo Aeroportuario del Centro Norte
Disclosure of transactions between related parties
Due to related parties		80,681
Term	30 days
Aeromantenimiento, S.A.
Disclosure of transactions between related parties
Due to related parties		39,284	1,474
Term	30 days
Chevez, Ruiz, Zamarripa y Ca., S.C
Disclosure of transactions between related parties
Due to related parties		4,823
Term	30 days
Mijares, Angoitia, Corts y Fuentes, S.C.
Disclosure of transactions between related parties
Due to related parties		$ 166	$ 996
Term	30 days

Related parties - Transactions

Related parties - Transactions with related parties (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of transactions between related parties
Guarantees provided	$ 0	$ 0
guarantees received	0	0
Provision for expected credit losses	0	0
Frontier Airlines Inc
Disclosure of transactions between related parties
Code-share	148,964	208,968	$ 8,358
Aeromantenimiento, S.A.
Disclosure of transactions between related parties
Aircraft and engine maintenance	239,118	201,624	341,726
Technical support	3,945	5,815	4,796
One Link, S.A. de C.V.
Disclosure of transactions between related parties
Call center fees and other professional fees	73,167	37,026
Mijares, Angoitia, Corts y Fuentes, S.C.
Disclosure of transactions between related parties
Professional fees	5,582	1,321	1,672
Grupo Aeroportuario del Centro Norte
Disclosure of transactions between related parties
Airport service	32,193
Chevez, Ruiz, Zamarripa y Ca., S.C
Disclosure of transactions between related parties
Professional fees	4,823
Servprot S.A. de C.V.
Disclosure of transactions between related parties
Security service	$ 3,464	$ 3,120	2,804
Human Capital International
Disclosure of transactions between related parties
Professional fees			$ 324

Related parties - Other informa

Related parties - Other information (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2020MXN ($)
Disclosure of transactions between related parties
Balances due under the agreement			$ 58,554		$ 124,993
Due from related parties	$ 3,641		23,442		72,629
Aggregate compensation of short and long-term benefits	$ 173,113	$ 3,453,382	3,600,762	$ 3,125,393
Expense (benefit) arising from cash-settled share-based payments transactions			40,724	(5,238)
Expense arising from cash-settled share-based payments transactions		105,303
Servprot S.A. de C.V.
Disclosure of transactions between related parties
Security services expenses		$ 3,464	3,120	2,804
Aeromantenimiento, S.A.
Disclosure of transactions between related parties
Agreement term	5 years	5 years
Balances due under the agreement			1,474		39,284
Aircraft, engine maintenance and technical support		$ 243,063	207,439	346,522
Human Capital International
Disclosure of transactions between related parties
Balances due under the agreement				0
Professional services expenses				324
One Link, S.A. de C.V.
Disclosure of transactions between related parties
Balances due under the agreement			39,838		0
Expenses under the agreement		73,167	37,026	0
Mijares, Angoitia, Corts y Fuentes
Disclosure of transactions between related parties
Balances due under the agreement			996		166
Expenses under the agreement		5,582	1,321	1,672
Frontier Airlines Inc
Disclosure of transactions between related parties
Balances due under the agreement			16,246		39
Due from related parties			23,442		72,629
Revenue under this agreement		148,964	208,968	8,358
Directors and officers
Disclosure of transactions between related parties
Share-based payments transactions		75,040	49,659	19,980
Expense (benefit) arising from cash-settled share-based payments transactions			40,724	(5,238)
Expense arising from cash-settled share-based payments transactions		105,303
Provision for cash bonuses			80,634	50,000	0
Chairman and independent members of the board of directors
Disclosure of transactions between related parties
Aggregate compensation of short and long-term benefits		5,762	8,085	7,178
Rest of the directors
Disclosure of transactions between related parties
Aggregate compensation of short and long-term benefits		3,692	4,367	5,217
Senior managers
Disclosure of transactions between related parties
Aggregate compensation of short and long-term benefits		253,681	$ 237,846	$ 180,001
Grupo Aeroportuario del Centro Norte
Disclosure of transactions between related parties
Balances due under the agreement					80,681
Account payable					80,681
Amount expensed		32,193
Chevez, Ruiz, Zamarripa y Ca., S.C
Disclosure of transactions between related parties
Balances due under the agreement					4,823
Account payable					$ 4,823
Amount expensed		$ 4,823

Other accounts receivable, ne_2

Other accounts receivable, net (Details) - MXN ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other accounts receivable, net
Credit cards	$ 231,260	$ 389,634
Benefits from suppliers	105,947	26,989
Other accounts receivable	87,204	189,904
Other points of sales	67,315	102,002
Cargo clients	45,201	46,600
Employees	36,287	29,681
Travel agencies and insurance commissions	16,099	76,975
Marketing services receivable	4,020	7,024
Airport services	15	42,894
Affinity credit card		49,040
Settlement receivable		2,422
Insurance claims		143
Other current accounts receivable, gross	593,348	963,308
Allowance for credit losses	(32,708)	(40,308)	$ (11,304)	$ (17,809)
Other accounts receivable, net	$ 560,640	$ 923,000

Other accounts receivable, ne_3

Other accounts receivable, net - Aging of accounts receivable (Details) - MXN ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts receivable aging
Impaired accounts receivable	$ 32,708	$ 40,308	$ 11,304	$ 17,809
Not impaired accounts receivable	560,640	923,000
Total accounts receivable	593,348	963,308
0-30 Days
Accounts receivable aging
Impaired accounts receivable	4,090	5,804
Not impaired accounts receivable	486,001	722,651
Total accounts receivable	490,091	728,455
31-60 Days
Accounts receivable aging
Not impaired accounts receivable	13,872	64,983
Total accounts receivable	13,872	64,983
61-90 Days
Accounts receivable aging
Not impaired accounts receivable	6,081	19,274
Total accounts receivable	6,081	19,274
91-120 Days
Accounts receivable aging
Impaired accounts receivable	28,618	34,504
Not impaired accounts receivable	54,686	116,092
Total accounts receivable	$ 83,304	$ 150,596

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, 2020	Dec. 31, 2019	Dec. 31, 2018
Other accounts receivable, net
Balance as of beginning of the year	$ (40,308)	$ (11,304)	$ (17,809)
Write-offs	21,264	11,389	17,126
Increase in allowance	(13,664)	(40,393)	(10,621)
Balance as of end of the year	$ (32,708)	$ (40,308)	$ (11,304)

Inventories (Details)

Inventories (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)
Inventories
Spare parts and accessories of flight equipment		$ 294,390			$ 271,454
Miscellaneous supplies		7,518			7,505
Total		301,908		$ 13,984	$ 278,959
Consumption of inventories included in maintenance expense	$ 234,691	$ 284,687	$ 290,206

Prepaid expenses and other cu_3

Prepaid expenses and other current assets (Details) $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Prepaid expenses and other current assets
Flight credits		$ 389,927
Advances to suppliers		163,044	$ 283,340
Sales commission to travel agencies		151,342	84,239
Other prepaid expenses		81,803	115,054
Prepaid insurance		64,309	88,941
Advances to components suppliers			209,557
Total	$ 42,631	$ 850,425	$ 781,131

Guarantee deposits (Details)

Guarantee deposits (Details) $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Current assets:
Credit letters deposits		$ 829,918
Aircraft maintenance deposits paid to lessors		279,390	$ 576,505
Deposits for rental of flight equipment		23,584
Other guarantee deposits		9,064	23,822
Total	$ 57,245	1,141,956	600,327
Non-current assets:
Aircraft maintenance deposits paid to lessors		7,641,544	7,047,360
Deposits for rental of flight equipment		741,871	557,530
Other guarantee deposits		41,323	39,531
Total	$ 422,320	8,424,738	7,644,421
Total guarantee deposits		$ 9,566,694	$ 8,244,748

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, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2017MXN ($)
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		$ 7,385,334		$ 364,994	$ 7,281,157	$ 5,782,282
Capitalized borrowing costs	$ 384,038	456,313	$ 357,920
Disposals of capitalized borrowing costs	$ 401,862	328,571	$ 242,678
Leasehold improvements to flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		1,540,788			1,737,883	1,214,589
Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		4,507,770			4,920,126	3,672,090
Flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		733,250			465,913	664,322
Aircraft Spare engines
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		54,771			52,984
Construction and improvements in process
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		474,240			53,545	142,738
Constructions and improvements
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		40,950			27,016	15,235
Computer equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		13,071			7,819	16,547
Workshop tools
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		4,852			3,329	3,369
Electric power equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		9,012			7,675	5,122
Communications equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		5,777			5,765	4,911
Workshop machinery and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		10,209			12,933	4,481
Motorized transport equipment platform
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		9,634			7,323	446
Service carts on board
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		2,121			3,104	126
Office furniture and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		36,660			31,726	$ 38,306
Allowance for obsolescence
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		3,000			3,000
Gross value
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		10,877,907			12,152,595
Gross value | Leasehold improvements to flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		4,220,672			5,092,049
Gross value | Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		4,507,770			4,920,126
Gross value | Flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		1,287,102			1,689,473
Gross value | Construction and improvements in process
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		474,240			53,545
Gross value | Constructions and improvements
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		172,460			175,407
Gross value | Computer equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		47,566			49,945
Gross value | Workshop tools
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		26,875			27,727
Gross value | Electric power equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		20,412			20,448
Gross value | Communications equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		14,099			14,803
Gross value | Workshop machinery and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		16,301			20,574
Gross value | Motorized transport equipment platform
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		15,026			15,247
Gross value | Service carts on board
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		7,675			9,216
Gross value | Office furniture and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		70,709			67,035
Gross value | Allowance for obsolescence
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		3,000			3,000
Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(3,492,573)			(4,871,438)
Accumulated depreciation / amortization | Leasehold improvements to flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(2,679,884)			(3,354,166)
Accumulated depreciation / amortization | Flight equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(553,852)			(1,223,560)
Accumulated depreciation / amortization | Constructions and improvements
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(131,510)			(148,391)
Accumulated depreciation / amortization | Computer equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(34,495)			(42,126)
Accumulated depreciation / amortization | Workshop tools
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(22,023)			(24,398)
Accumulated depreciation / amortization | Electric power equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(11,400)			(12,773)
Accumulated depreciation / amortization | Communications equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(8,322)			(9,038)
Accumulated depreciation / amortization | Workshop machinery and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(6,092)			(7,641)
Accumulated depreciation / amortization | Motorized transport equipment platform
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(5,392)			(7,924)
Accumulated depreciation / amortization | Service carts on board
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		(5,554)			(6,112)
Accumulated depreciation / amortization | Office furniture and equipment
Rotable spare parts, furniture and equipment, net
Rotable spare parts, furniture and equipment, net (Note 12)		$ (34,049)			$ (35,309)

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, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		$ 7,385,334		$ 5,782,282
Additions		3,682,005	$ 3,310,803
Disposals and transfers		(2,971,631)	(1,247,357)
Borrowing costs, net		(17,822)	127,742
Other movements		1,098	(287)
Depreciation		(797,827)	(587,849)	(427,756)
Balance at end of the year	$ 364,994	7,281,157	7,385,334
Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		10,877,907
Balance at end of the year		12,152,595	10,877,907
Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(3,492,573)
Balance at end of the year		(4,871,438)	(3,492,573)
Aircraft Spare engines
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		54,771
Depreciation		(5,946)	(1,787)
Balance at end of the year		52,984	54,771
Flight equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		733,250		664,322
Additions		668,376	692,186
Disposals and transfers		(861,761)	(538,370)
Depreciation		(73,952)	(84,888)
Balance at end of the year		465,913	733,250
Flight equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		1,287,102
Balance at end of the year		1,689,473	1,287,102
Flight equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(553,852)
Balance at end of the year		(1,223,560)	(553,852)
Constructions and improvements
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		40,950		15,235
Additions		128	5,596
Other movements		2,317	34,840
Depreciation		(16,379)	(14,721)
Balance at end of the year		27,016	40,950
Constructions and improvements | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		172,460
Balance at end of the year		175,407	172,460
Constructions and improvements | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(131,510)
Balance at end of the year		(148,391)	(131,510)
Computer equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		13,071		16,547
Additions		1,648	1,730
Disposals and transfers			(131)
Other movements		713	1,999
Depreciation		(7,613)	(7,074)
Balance at end of the year		7,819	13,071
Computer equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		47,566
Balance at end of the year		49,945	47,566
Computer equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(34,495)
Balance at end of the year		(42,126)	(34,495)
Office furniture and equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		36,660		38,306
Additions		733	1,461
Disposals and transfers			(10)
Other movements		101	2,757
Depreciation		(5,768)	(5,854)
Balance at end of the year		31,726	36,660
Office furniture and equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		70,709
Balance at end of the year		67,035	70,709
Office furniture and equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(34,049)
Balance at end of the year		(35,309)	(34,049)
Electric power equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		9,012		5,122
Additions			2,487
Other movements		36	2,487
Depreciation		(1,373)	(1,084)
Balance at end of the year		7,675	9,012
Electric power equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		20,412
Balance at end of the year		20,448	20,412
Electric power equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(11,400)
Balance at end of the year		(12,773)	(11,400)
Workshop tools
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		4,852		3,369
Additions		851	3,137
Other movements			284
Depreciation		(2,374)	(1,938)
Balance at end of the year		3,329	4,852
Workshop tools | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		26,875
Balance at end of the year		27,727	26,875
Workshop tools | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(22,023)
Balance at end of the year		(24,398)	(22,023)
Motorized transport equipment platform
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		9,634		446
Other movements		222	9,529
Depreciation		(2,533)	(341)
Balance at end of the year		7,323	9,634
Motorized transport equipment platform | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		15,026
Balance at end of the year		15,247	15,026
Motorized transport equipment platform | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(5,392)
Balance at end of the year		(7,924)	(5,392)
Communications equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		5,777		4,911
Additions			355
Disposals and transfers			(2)
Other movements		1,083	1,446
Depreciation		(1,095)	(933)
Balance at end of the year		5,765	5,777
Communications equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		14,099
Balance at end of the year		14,803	14,099
Communications equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(8,322)
Balance at end of the year		(9,038)	(8,322)
Workshop machinery and equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		10,209		4,481
Additions			4,278
Disposals and transfers			(35)
Other movements		4,273	2,529
Depreciation		(1,549)	(1,044)
Balance at end of the year		12,933	10,209
Workshop machinery and equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		16,301
Balance at end of the year		20,574	16,301
Workshop machinery and equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(6,092)
Balance at end of the year		(7,641)	(6,092)
Service carts on board
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		2,121		126
Additions		1,541	2,273
Depreciation		(558)	(278)
Balance at end of the year		3,104	2,121
Service carts on board | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		7,675
Balance at end of the year		9,216	7,675
Service carts on board | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(5,554)
Balance at end of the year		(6,112)	(5,554)
Allowance for obsolescence [Member]
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		3,000
Additions			(3,000)
Balance at end of the year		3,000	3,000
Allowance for obsolescence [Member] | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		3,000
Balance at end of the year		3,000	3,000
Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		4,507,770		3,672,090
Additions		2,185,902	1,412,790
Disposals and transfers		(1,755,724)	(704,852)
Borrowing costs, net		(17,822)	127,742
Balance at end of the year		4,920,126	4,507,770
Pre-delivery payments | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		4,507,770
Balance at end of the year		4,920,126	4,507,770
Construction and improvements in process
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		474,240		142,738
Additions		176,607	525,556
Disposals and transfers		(354,146)	(3,957)
Other movements		(243,156)	(190,097)
Balance at end of the year		53,545	474,240
Construction and improvements in process | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		474,240
Balance at end of the year		53,545	474,240
Leasehold improvements to flight equipment
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		1,540,788		$ 1,214,589
Additions		646,219	661,954
Other movements		235,509	133,939
Depreciation		(684,633)	(469,694)
Balance at end of the year		1,737,883	1,540,788
Leasehold improvements to flight equipment | Gross value
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		4,220,672
Balance at end of the year		5,092,049	4,220,672
Leasehold improvements to flight equipment | Accumulated depreciation / amortization
Rotable spare parts, furniture and equipment, net
Balance at beginning of the year		(2,679,884)
Balance at end of the year		$ (3,354,166)	$ (2,679,884)

Rotable spare parts, furnitur_5

Rotable spare parts, furniture and equipment, net - Additional Information (Details) $ in Thousands, $ in Thousands	Aug. 16, 2013engine	Nov. 30, 2018itemaircraft	Nov. 30, 2015engine	Dec. 31, 2020USD ($)aircraft	Dec. 31, 2020MXN ($)	Dec. 31, 2019USD ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)aircraft	Dec. 31, 2017USD ($)	Dec. 31, 2017MXN ($)	Dec. 31, 2011aircraft	Dec. 31, 2020MXN ($)aircraft
Rotable spare parts, furniture and equipment, net
Depreciation expense | $					$ 797,827		$ 587,849	$ 427,756
Number of spare engines purchased | engine			3
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					$ 4,878
Number of aircraft to be delivered | item		26
Amounts paid for aircraft and spare engines				$ 169,263	3,376,576		3,483,368	2,743,155
Total number of aircraft to be delivered				96								96
Gain (loss) on sale and leaseback | $					$ 710,522		284,759	609,168
Term of aircraft delivery agreement				8 years	8 years
Carrying amount of remaining owned aircraft				$ 364,994			7,385,334			5,782,282		$ 7,281,157
Between one year and two years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered				4								4
Between two and three years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered				12								12
Between three and four years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered				3								3
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				15								15
Between six and seven years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered				25								25
Between seven and eight years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered				11								11
Between eight and nine years
Rotable spare parts, furniture and equipment, net
Total number of aircraft to be delivered				13								13
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 | $							5,230	$ 7,191				$ 5,230
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
A320NEO Into A321NEO
Rotable spare parts, furniture and equipment, net
Number of aircraft purchased		6
Pre-delivery payments
Rotable spare parts, furniture and equipment, net
Amounts paid for aircraft and spare engines				$ 102,700	$ 2,185,902	$ 75,000	1,412,790
Carrying amount of remaining owned aircraft | $							4,507,770			$ 3,672,090		4,920,126
Aircraft Spare engines
Rotable spare parts, furniture and equipment, net
Depreciation expense | $					$ 5,946		1,787
Carrying amount of remaining owned aircraft | $							$ 54,771					$ 52,984

Intangible assets, net (Details

Intangible assets, net (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Composition and movement of intangible assets
Beginning balance		$ 167,397
Ending balance	$ 9,603	191,562	$ 167,397
Software
Composition and movement of intangible assets
Beginning balance		167,397	179,124
Additions		124,724	77,325
Amortization		(100,618)	(87,667)
Exchange differences		59	(1,385)
Ending balance		191,562	167,397	$ 179,124
Amortization expense		100,618	87,667	$ 72,885
Software | Gross value
Composition and movement of intangible assets
Beginning balance		579,360
Ending balance		704,257	579,360
Software | Accumulated depreciation / amortization
Composition and movement of intangible assets
Beginning balance		(411,963)
Ending balance		$ (512,695)	$ (411,963)
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

Leases - Fleet and spare engine

Leases - Fleet and spare engines (Details)	1 Months Ended	12 Months Ended
	Nov. 30, 2015engine	Dec. 31, 2020agreementengineaircraft	Dec. 31, 2019agreementengineaircraft	Dec. 31, 2018agreementengineaircraft
Leases
Number of aircraft leased		85	81
Number of spare engines leased | engine		18	14
Number of aircraft incorporated to fleet		7	7	10
Number of aircraft with lease term extended | agreement		2	1	2
Number of spare engines purchased | engine	3
Airbus purchase agreement
Leases
Number of aircraft purchased		7
Number of aircraft incorporated to fleet		7
Number of aircraft returned to respective lessors		3
Sale and Leaseback Transactions
Leases
Number of aircraft purchased			7	10
Number of aircrafts purchased directly from lessor			4
Number of aircraft incorporated to fleet				7
Number of aircraft returned to respective lessors				4
Number of aircraft with lease term extended | engine			1
Number of aircraft spare engines with lease term extended				2
Number of spare engines returned | engine			2
Pratt and Whitney purchase agreement (FMP)
Leases
Number of NEO spare engines incorporated to fleet | engine		2	2	2
Number of CEO spare engines incorporated to fleet | engine		2	2
Number of aircraft spare engines to be leased | engine		4	4
Number of spare engines with lease term extended | engine			1
A319 Model 132
Leases
Number of aircraft leased		3	3
A319 Model 133
Leases
Number of aircraft leased		2	4
A320 Model 233
Leases
Number of aircraft leased		39	39
A320 Model 232
Leases
Number of aircraft leased		1	2
A320NEO Model 271N
Leases
Number of aircraft leased		24	17
A320NEO Model 271N | Sale and Leaseback Transactions
Leases
Number of aircraft purchased			3
Number of aircraft incorporated to fleet				3
A321 Model 231
Leases
Number of aircraft leased		10	10
A321NEO Model 271N
Leases
Number of aircraft leased		6	6
V2500 Model V2524-A5
Leases
Number of spare engines leased | engine		2	2
V2500 Model V2527M-A5
Leases
Number of spare engines leased | engine		3	3
V2500 Model V2527E-A5
Leases
Number of spare engines leased | engine		5	3
V2500 Model V2527-A5
Leases
Number of spare engines leased | engine		2	2
PW1100 Model PW1127G-JM
Leases
Number of spare engines leased | engine		5	3
PW1100 Model PW1133G-JM engine
Leases
Number of spare engines leased | engine		1	1

Leases - Carrying amounts of ri

Leases - Carrying amounts of right-of use assets (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Disclosure of quantitative information about right-of-use assets [line items]
Balance at the beginning		$ 34,128,766	$ 31,882,053
Additions		5,253,374	6,949,684
Disposals		(17,742)
Foreign exchange effect		795
Depreciation on right of use assets	$ (253,098)	(5,048,976)	(4,702,971)	$ (4,043,691)
Balance at the end	$ 1,720,223	34,316,217	34,128,766	31,882,053
Flight equipment
Disclosure of quantitative information about right-of-use assets [line items]
Balance at the beginning		33,312,089	31,126,169
Additions		4,876,071	6,676,492
Disposals		(17,742)
Depreciation on right of use assets		(4,763,928)	(4,490,572)
Balance at the end		33,406,490	33,312,089	31,126,169
Aircraft Spare engines
Disclosure of quantitative information about right-of-use assets [line items]
Balance at the beginning		677,198	579,696
Additions		362,081	230,200
Depreciation on right of use assets		(210,079)	(132,698)
Balance at the end		829,200	677,198	579,696
Land and building leases
Disclosure of quantitative information about right-of-use assets [line items]
Balance at the beginning		139,479	176,188
Additions		15,222	42,992
Foreign exchange effect		795
Depreciation on right of use assets		(74,969)	(79,701)
Balance at the end		$ 80,527	$ 139,479	$ 176,188

Leases - Carrying amounts of le

Leases - Carrying amounts of lease liabilities (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)
Leases
As at 1 January	$ 40,517,045	$ 39,565,146
Additions	5,572,764	7,186,613
Disposals	(231,566)
Accretion of interest	2,218,982	2,037,540
Foreign exchange effect	2,163,886	(1,772,452)
Payments	(6,110,569)	(6,499,802)	$ (5,710,907)
As at 31 December	$ 44,130,542	40,517,045	$ 39,565,146
Current		4,720,505		$ 325,038	$ 6,484,092
Lease liabilities		$ 35,796,540		$ 1,887,163	$ 37,646,450

Leases - Amounts recognized in

Leases - Amounts recognized in profit and loss (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Leases
Depreciation of right of use assets	$ (253,098)	$ (5,048,976)	$ (4,702,971)	$ (4,043,691)
Interest expense on lease liabilities		(2,350,250)	(2,128,162)	(1,755,978)
Aircraft and engine variable expenses	$ (92,500)	(1,845,254)	(961,657)	(956,010)
Total amount recognized in profit or loss		(9,244,480)	(7,792,790)	(6,755,679)
Cash outflow for leases		6,110,569	6,499,802	5,710,907
Supplemental Rent		1,428,179	$ 680,964	$ 659,106
Changes to lease payments that arose from concessions of lease modifications		$ 190,811

Accrued liabilities - Short-ter

Accrued liabilities - Short-term (Details) $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Accrued liabilities
Fuel and traffic accrued expenses		$ 1,285,931	$ 1,507,659
Maintenance and aircraft parts accrued expenses		98,942	120,254
Sales, marketing and distribution accrued expenses		179,342	230,935
Maintenance deposits		174,549	132,085
Salaries and benefits		337,467	296,829
Accrued administrative expenses		122,729	81,124
Deferred revenue from V Club membership		20,830	35,465
Information and communication accrued expenses		35,359	67,808
Supplier services agreement		10,634	10,634
Benefits from suppliers		3,888
Advances from travel agencies		242	542
Others		86,374	48,526
Total accrued liabilities	$ 118,118	$ 2,356,287	$ 2,531,861

Accrued liabilities - Long-term

Accrued liabilities - Long-term (Details) $ in Thousands, $ in Thousands	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Accrued liabilities
Supplier services agreement		$ 45,270	$ 55,905
Benefits from suppliers		16,847	19,439
Other		4,581	15,452
Total long-term accrued liabilities	$ 3,343	$ 66,698	$ 90,796

Accrued liabilities - Other lia

Accrued liabilities - Other liabilities (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Analysis of accrued liabilities
Balance at beginning of the year	$ 1,876,785	$ 1,846,029
Increase for the year	2,397,211	747,640
Payments	(1,505,095)	(716,884)
Balance at end of the year	2,768,901	1,876,785
Aircraft and engine lease return obligation
Analysis of accrued liabilities
Balance at beginning of the year	1,852,688	1,831,045
Increase for the year	2,126,401	725,506
Payments	(1,474,605)	(703,863)
Balance at end of the year	2,504,484	1,852,688
Guarantee deposit
Analysis of accrued liabilities
Increase for the year	250,000
Balance at end of the year	250,000
Employee profit sharing
Analysis of accrued liabilities
Balance at beginning of the year	24,097	14,984
Increase for the year	20,810	22,134
Payments	(30,490)	(13,021)
Balance at end of the year	$ 14,417	$ 24,097

Accrued liabilities - Other l_2

Accrued liabilities - Other liabilities, short-term and long-term (Details) $ in Thousands, $ in Thousands	24 Months Ended
	Dec. 31, 2020MXN ($)	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Accrued liabilities
Current maturities		$ 5,074	$ 101,218	$ 407,190
Non-current		$ 133,727	$ 2,667,683	$ 1,469,595
Cancellations, or write off related to liabilities	$ 0

Employee benefits - Analysis of

Employee benefits - Analysis of net period cost (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Employee benefits
Current service cost	$ 8,449	$ 8,214	$ 4,977
Interest cost on benefit obligation	2,630	1,872	1,424
Net period cost	$ 11,079	$ 10,086	$ 6,401

Employee benefits - Changes in

Employee benefits - Changes in the defined benefit obligation and actuarial assumptions (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined benefit obligation and significant assumptions
Defined benefit obligation at beginning of the year	$ 38,151	$ 18,153
Net period cost charged to profit or loss:
Current service cost	8,449	8,214
Interest cost on benefit obligation	2,630	1,872
Remeasurement losses in other comprehensive income:
Actuarial changes arising from changes in assumptions	2,651	10,192
Payments made	(1,254)	(225)
Defined benefit obligation at end of the year	$ 50,627	$ 38,206
Discount rate	7.04%	7.18%	9.91%
Expected rate of salary increases	5.50%	5.50%	5.65%
Annual increase in minimum salary	4.00%	4.00%	4.15%
Employee profit-sharing (Note 15c)	$ 337,467	$ 296,829
Employee profit sharing
Remeasurement losses in other comprehensive income:
Employee profit-sharing (Note 15c)	$ 14,417	$ 24,097

Share-based payments - Share pu

Share-based payments - Share purchase plan (Details) $ in Thousands	Nov. 11, 2014MXN ($)	Nov. 30, 2020MXN ($)	Nov. 30, 2019MXN ($)	Nov. 30, 2018MXN ($)	Nov. 30, 2014MXN ($)	Dec. 31, 2020EquityInstrumentsshares	Dec. 31, 2019EquityInstrumentsshares	Dec. 31, 2018EquityInstrumentsshares
Share purchase plan
Forfeited during the year						(327,217)	(294,541)
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 | $		$ 92,132	$ 86,772	$ 63,961
Cost of extensions net of withheld taxes | $		$ 59,899	$ 56,407	$ 41,590
Outstanding at beginning of the year						5,115,191	3,553,295	820,088
Purchased during the year | shares						3,159,763	2,694,600	3,208,115
Exercised/vested during the year						(2,142,426)	(959,614)	(353,457)
Forfeited during the year						(327,217)	(173,090)	(121,451)
Outstanding at end of the year						5,805,311	5,115,191	3,553,295

Share-based payments - Vesting

Share-based payments - Vesting period of shares granted under share purchase plan (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020MXN ($)EquityInstruments	Dec. 31, 2019MXN ($)EquityInstruments	Dec. 31, 2018MXN ($)EquityInstruments	Dec. 31, 2017EquityInstruments
Share-based payments
Compensation expense recorded in the consolidated statement of operations | $	$ 75,040	$ 49,659	$ 19,980
Forfeited during the year	(327,217)	(294,541)
Share purchase plan
Share-based payments
Shares outstanding	5,805,311	5,115,191	3,553,295	820,088
Compensation expense recorded in the consolidated statement of operations | $	$ 75,040	$ 49,659	$ 19,980
Forfeited during the year	(327,217)	(173,090)	(121,451)
Share purchase plan | Vesting / Exercisable within one year
Share-based payments
Shares outstanding	2,979,412
Share purchase plan | Vesting / Exercisable within two years
Share-based payments
Shares outstanding	1,819,440
Share purchase plan | Vesting / Exercisable within three years
Share-based payments
Shares outstanding	1,006,459

Share-based payments - SARs (ca

Share-based payments - SARs (cash settled) (Details) $ in Thousands	Nov. 06, 2014MXN ($)EquityInstruments	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Share-based payments
Compensation expense recorded in the consolidated statement of operations		$ 105,303
Compensation (benefit) recorded in the consolidated statement of operations			$ 40,724	$ (5,238)
SARs - cash settled
Share-based payments
Granted | EquityInstruments	4,315,264
Vesting period	3 years
Total amount granted	$ 10,831
Carrying amount of the liability			1,901	537
Compensation expense recorded in the consolidated statement of operations			2,964
Compensation (benefit) recorded in the consolidated statement of operations		$ (1,901)		$ (186)
Cash payment related to key employees related to SARs plan			$ 2,395

Share-based payments - MIP I (D

Share-based payments - MIP I (Details) $ / shares in Units, $ in Thousands	Dec. 27, 2012MXN ($)	Dec. 24, 2012$ / shares	Dec. 21, 2012EquityInstruments$ / shares	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)
Share-based payments
Cost of MIP related to the vested shares				$ 180,343	$ 90,383
MIP I
Share-based payments
Exercise price of shares | $ / shares		$ 5.31
Amount borrowed by trust	$ 133,723
Maximum term of share options		10 years
Total cost of MIP determined				$ 2,722
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 | $ / shares			$ 5.31

Share-based payments - MIP I, a

Share-based payments - MIP I, assumptions (Details) - MIP I	Dec. 24, 2012MXN ($)Y$ / shares	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)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 | $ / shares	$ 5.31
Exercise multiple	1.1
Fair value of the stock at grant date | $	$ 1.73
Shares exercised | EquityInstruments			2,780,000
Series A shares
Share-based payments
Shares exercised | EquityInstruments			2,780,000
Amount paid to Management Trust corresponding to exercised shares | $		$ 0	$ 14,773,000

Share-based payments - MIP I, m

Share-based payments - MIP I, movement in share options (Details) - MIP I $ in Thousands	12 Months Ended
	Dec. 31, 2020$ / shares	Dec. 31, 2020MXN ($)EquityInstruments	Dec. 31, 2019$ / shares	Dec. 31, 2019MXN ($)EquityInstruments
Share-based payments
Outstanding at beginning of the year (shares) | EquityInstruments		7,653,981		10,433,981
Exercised during the year (shares) | EquityInstruments				(2,780,000)
Outstanding at end of the year (shares) | EquityInstruments		7,653,981		7,653,981
Outstanding at the beginning of the year (Exercise price) | $ / shares	$ 5.31		$ 5.31
Exercise during the year (Exercise price) | $ / shares			5.31
Outstanding at end of the year (Exercise price) | $ / shares	$ 5.31		$ 5.31
Outstanding at beginning of the year (Total) | $		$ 40,668		$ 55,441
Exercised during the year (Total) | $				(14,773)
Outstanding at end of the year (Total) | $		$ 40,668		$ 40,668

Share-based payments - MIP II (

Share-based payments - MIP II (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020MXN ($)EquityInstruments	Dec. 31, 2019MXN ($)EquityInstruments	Dec. 31, 2018MXN ($)EquityInstruments
Share-based payments
Compensation expense recorded in the consolidated statement of operations | $	$ 75,040	$ 49,659	$ 19,980
Forfeited during the year	327,217	294,541
MIP II
Share-based payments
Vesting period	5 years
Extension of vesting period	5 years
Carrying amount of the liability | $	$ 177,770	$ 70,567
Compensation expense recorded in the consolidated statement of operations | $	$ 107,204
Compensation (benefit) recorded in the consolidated statement of operations | $		$ 37,760
Exercised during the year (shares)			0
Granted	3,391,020
Forfeited during the year	0	0	1,563,520
MIP II | Vesting / Exercisable within one year
Share-based payments
Granted	3,391,020

Share-based payments - Expense

Share-based payments - Expense (benefit) recognized in retention plans (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based payments
Expense (benefit) arising from cash-settled share-based payments transactions		$ 40,724	$ (5,238)
Expense arising from cash-settled share-based payments transactions	$ 105,303
Expense arising from equity-settled share-based payments transactions	75,040	49,659	19,980
Total expense arising from share-based payments transactions	$ 180,343	$ 90,383
Total (benefit) arising from share-based payments transactions			$ 14,742

Share-based payments - Board of

Share-based payments - Board of Directors Incentive Plan (BoDIP) (Details) - BODIP	1 Months Ended	12 Months Ended
	Apr. 30, 2018$ / shares	Dec. 31, 2020EquityInstruments$ / shares	Dec. 31, 2019EquityInstruments$ / shares	Dec. 31, 2018$ / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Vesting period	4 years
Exercise price | $ / shares	$ 16.12	$ 9.74	$ 16.80	$ 16.12
Shares available to be exercised | EquityInstruments		5,233,693	2,072,344

Equity - Authorized shares and

Equity - Authorized shares and secondary follow-on equity offering (Details) $ / shares in Units, $ / shares in Units, $ in Thousands	Dec. 11, 2020USD ($)$ / sharesshares	Dec. 11, 2020MXN ($)shares	Feb. 16, 2018shares	Dec. 31, 2020USD ($)EquityInstruments	Dec. 31, 2020MXN ($)EquityInstruments$ / sharesshares	Dec. 31, 2019EquityInstruments$ / sharesshares
Equity
Par value | $ / shares					$ 0	$ 0
Number of authorized shares					1,165,976,677	1,011,876,677
Treasury shares					(19,020,202)	(15,136,057)
Shares fully subscribed and paid					1,146,956,475	996,740,620
Forfeited during the year | EquityInstruments				327,217	327,217	294,541
Proceeds from issuance of shares	$ 164,419,000			$ 164,062,000	$ 3,272,832
Increase in capital stock | $		$ 3,272,832			$ 3,272,832
Series A shares
Equity
Number of authorized shares					1,077,924,804	923,824,804
Number of shares per CPO	1	1
Series B shares
Equity
Number of authorized shares					88,051,873	88,051,873
Conversion of equivalent number of shares			45,968,598
Fixed Class I
Equity
Number of authorized shares					24,180	24,180
Shares fully subscribed and paid					24,180	24,180
Fixed Class I | Series A shares
Equity
Number of authorized shares					10,478	10,478
Fixed Class I | Series B shares
Equity
Number of authorized shares					13,702	13,702
Variable Class II
Equity
Number of authorized shares					1,165,952,497	1,011,852,497
Treasury shares					(19,020,202)	(15,136,057)
Shares fully subscribed and paid					1,146,932,295	996,716,440
Variable Class II | Series A shares
Equity
Number of authorized shares					1,077,914,326	923,814,326
Variable Class II | Series B shares
Equity
Number of authorized shares					88,038,171	88,038,171
American Depositary Shares
Equity
Weighted average share price | $ / shares	$ 11.25
Number of CPOs per ADS	10	10
Primary follow-on equity offering
Equity
Number of shares offered	134,000,000	134,000,000
Over-allotment | American Depositary Shares
Equity
Number of shares issued	20,100,000	20,100,000

Equity - Earnings (loss) per sh

Equity - Earnings (loss) per share (Details) $ / shares in Units, $ / shares in Units, shares in Thousands, $ in Thousands, $ in Thousands	Apr. 19, 2017MXN ($)	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2020MXN ($)$ / sharesshares	Dec. 31, 2019MXN ($)$ / sharesshares	Dec. 31, 2018MXN ($)$ / sharesshares	Dec. 31, 2020MXN ($)
Equity
Net (loss) income for the period		$ (215,242)	$ (4,293,791)	$ 2,639,063	$ (942,882)
Weighted average number of shares outstanding (in thousands):
Basic		1,021,561	1,021,561	1,011,877	1,011,877
Diluted		1,021,561	1,021,561	1,011,877	1,011,877
EPS- LPS :
Basic | (per share)		$ (0.211)	$ (4.203)	$ 2.608	$ (0.932)
Diluted | (per share)		$ (0.211)	$ (4.203)	$ 2.608	$ (0.932)
Legal reserve		$ 14,596		$ 291,178	$ 291,178	$ 291,178
Legal reserve as a percent of capital stock		8.50%		9.80%	9.80%	8.50%
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, 2020	Dec. 31, 2019	Dec. 31, 2018
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	$ 302,029	$ 938,304	$ 777,513
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
El Salvador
Income tax
Corporate income tax rate	30.00%	30.00%	30.00%
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, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Income tax
Current year income tax expense		$ (90,609)	$ (281,491)	$ (232,824)
Deferred income tax benefit (expense)		1,496,793	(813,340)	582,644
Total income tax benefit (expense)	$ 70,490	1,406,184	(1,094,831)	349,820
Deferred income tax expense, translation effect		2,035	(2,278)	2,680
Deferred tax related to items recognized in OCI during the year
Net gain (loss) cash flow hedges		46,835	(74,820)	85,107
Remeasurement (loss) gain of employee benefits		794	3,058	(1,797)
Deferred income tax charged to OCI		$ 47,629	$ (71,762)	$ 83,310

Income tax - Reconciliation of

Income tax - Reconciliation of statutory corporate income tax rate to effective tax rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income tax
Statutory income tax rate	30.00%	30.00%	30.00%
Amendment tax return effects and other tax adjustments	0.92%	(0.51%)	0.05%
Inflation on furniture, intangible and equipment	0.29%	(0.48%)	2.08%
Inflation of tax losses	0.23%	(0.21%)	1.16%
Foreign countries difference with Mexican statutory rate	(0.06%)	0.11%	(0.02%)
Annual inflation adjustment	(0.91%)	(0.05%)	0.26%
Unrecorded deferred taxes on tax losses	(1.29%)	0.27%	(3.96%)
Non-deductible expenses	(4.51%)	0.19%	(2.51%)
Total effective tax rate	24.67%	29.32%	27.06%

Income tax - Analysis of deferr

Income tax - Analysis of deferred taxes (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Analysis of consolidated deferred taxes
Net operating loss	$ 163,099	$ 3,253,596	$ (4,355,423)	$ (534,797)
Deferred income tax assets					$ 15,768,220	$ 14,511,827
Deferred income taxes					12,839,436	13,125,430
Deferred tax liability, net		2,928,784	1,386,397	2,269,220	2,928,784	1,386,397	$ 2,269,220
Reflected in consolidated statement of financial position
Deferred tax assets	156,830				3,128,555	1,542,536
Deferred tax liabilities	$ (10,014)				(199,771)	(156,139)
Deferred tax liability, net		2,928,784	1,386,397	2,269,220	2,928,784	1,386,397	2,269,220
Reconciliation of deferred tax liability, net
Deferred tax (liability) asset, net - beginning of the year		1,386,397	2,269,220
Deferred income tax (expense) benefit during the current year recorded on profits		1,494,758	(811,061)
Deferred income tax (expense) benefit during the current year recorded in accumulated other comprehensive income (loss)		47,629	(71,762)	83,310
Deferred tax (liability) asset, net - end of the year		2,928,784	1,386,397	2,269,220
Temporary differences associated with investments in subsidiaries					150,683	276,393
Deferred tax assets
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		1,208,764	297,878
Lease liabilities
Analysis of consolidated deferred taxes
Deferred income tax assets					13,239,254	12,155,114
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		1,084,140	313,137
Unearned transportation revenue
Analysis of consolidated deferred taxes
Deferred income tax assets					1,233,661	797,063
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		436,598	61,708
Extension lease agreement
Analysis of consolidated deferred taxes
Deferred income tax assets					773,443	459,343
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		314,100	(137,639)
Intangible
Analysis of consolidated deferred taxes
Deferred income tax assets					420,908	446,849
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(25,941)	(13,741)
Allowance for doubtful accounts
Analysis of consolidated deferred taxes
Deferred income tax assets					61,565	14,089
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		47,476	9,187
Tax losses available for offsetting against future taxable income
Analysis of consolidated deferred taxes
Deferred income tax assets					576,422	303,970	309,320
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		272,452	(5,350)
Employee benefits
Analysis of consolidated deferred taxes
Deferred income tax assets					15,191	11,463
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		2,934	2,958
Financial instruments
Analysis of consolidated deferred taxes
Deferred income tax assets					7,948	38,865
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(22)
Employee profit sharing
Analysis of consolidated deferred taxes
Deferred income tax assets					4,323	7,227
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(2,904)	2,734
Provisions
Analysis of consolidated deferred taxes
Deferred income tax assets					91,253	351,345
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(442,598)	60,655
Non derivative financial instruments
Analysis of consolidated deferred taxes
Deferred income tax assets					473,242	4,229
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(477,471)	4,229
Deferred tax liabilities
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(285,994)	1,108,939
Right of use asset
Analysis of consolidated deferred taxes
Deferred income taxes					10,292,753	10,236,929
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		55,824	672,311
Supplemental rent
Analysis of consolidated deferred taxes
Deferred income taxes					1,878,865	1,706,949
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		171,916	111,430
Rotable spare parts, furniture and equipment, net
Analysis of consolidated deferred taxes
Deferred income taxes					707,092	884,476
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(177,384)	239,452
Inventories
Analysis of consolidated deferred taxes
Deferred income taxes					83,402	90,287
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(6,885)	1,392
Other prepayments
Analysis of consolidated deferred taxes
Deferred income taxes					9,786	27,728
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(17,942)	(4,329)
Prepaid expenses and other assets
Analysis of consolidated deferred taxes
Deferred income taxes					132,462	179,061
Reconciliation of deferred tax liability, net
Deferred income tax (expense) benefit during the current year recorded on profits		(311,523)	88,683
Guatemala
Analysis of consolidated deferred taxes
Net operating loss		(1,835)	(1,085)
Guatemala | Tax losses available for offsetting against future taxable income
Analysis of consolidated deferred taxes
Net operating loss			8,549
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		55,751	50,246	$ 170,731
El Salvador
Analysis of consolidated deferred taxes
Net operating loss		$ 16,619	$ 32,494

Income tax - Tax loss carry-for

Income tax - Tax loss carry-forward (Details) - MXN ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Available tax loss carry-forward
Historical Loss	$ 2,084,960
Restated tax loss	2,238,306
Utilized	296,242
Total remaining amount	1,942,064
Unrecognized NOLs	20,657
Net remaining amount	$ 1,921,407
Statutory income tax rate	30.00%	30.00%	30.00%
Deferred income tax	$ 15,768,220	$ 14,511,827
Tax balances
Adjusted contributed capital account (CUCA)	4,607,752
CUFIN	3,241,275
Tax losses available for offsetting against future taxable income
Available tax loss carry-forward
Deferred income tax	576,422	$ 303,970	$ 309,320
Comercializadora Volaris, S.A. de C.V.
Available tax loss carry-forward
Historical Loss	42,777
Restated tax loss	43,685
Total remaining amount	43,685
Concesionaria
Available tax loss carry-forward
Historical Loss	1,875,180
Restated tax loss	2,027,302
Utilized	217,393
Total remaining amount	1,809,909
Operaciones Volaris
Available tax loss carry-forward
Historical Loss	18,648
Restated tax loss	18,965
Total remaining amount	18,965
Vuela, S.A.
Available tax loss carry-forward
Historical Loss	148,355
Restated tax loss	148,354
Utilized	78,849
Total remaining amount	69,505
2017, Expiration 2027
Available tax loss carry-forward
Historical Loss	1,067,836
Restated tax loss	1,206,232
Utilized	217,393
Total remaining amount	988,839
2018, Expiration 2021
Available tax loss carry-forward
Historical Loss	92,604
Restated tax loss	92,604
Utilized	78,849
Total remaining amount	13,755
2019, Expiration 2029
Available tax loss carry-forward
Historical Loss	4,922
Restated tax loss	5,186
Total remaining amount	5,186
2020, Expiration 2030
Available tax loss carry-forward
Historical Loss	863,847
Restated tax loss	878,533
Total remaining amount	878,533
2020, Expiration 2023
Available tax loss carry-forward
Historical Loss	55,751
Restated tax loss	55,751
Total remaining amount	$ 55,751

Other operating income and ex_3

Other operating income and expenses (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Analysis of other operating income
Gain on sale and leaseback transactions of aircraft and spare engines		$ 710,522	$ 284,759	$ 609,168
Loss on sale of rotable spare parts furniture and equipment		(2,604)	(8,954)	(2,356)
Other income		22,415	51,403	15,161
Other operating income	$ 36,611	730,333	327,208	621,973
Analysis of other operating expenses
Administrative and operational support expenses		632,041	581,181	536,079
Technology and communications		383,648	381,055	385,841
Passenger services		87,850	65,477	70,337
Insurance		53,507	74,661	60,892
Others		194	10,553	5,949
Other operating expenses	$ 58,011	$ 1,157,240	$ 1,112,927	$ 1,059,098

Finance income and cost (Detail

Finance income and cost (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Analysis of finance income
Interest on cash and equivalents		$ 93,122	$ 201,191	$ 152,437
Interest on asset backed trust notes		6,342	6,525
Interest on recovery of guarantee deposits		2,047	83	166
Total finance income	$ 5,089	101,511	207,799	152,603
Analysis of finance cost
Leases financial cost		2,350,250	2,128,162	1,755,978
Financial instruments loss		448,559
Interest on asset backed trust notes		116,240	80,314
Cost of letter credit notes		73,141	49,856	57,277
Interest on debts and borrowings		16,368	1,660	56,916
Bank fees and others		3,707	3,607	6,141
Other finance costs		10,219	6,230
Total finance costs	$ 151,313	3,018,484	2,269,829	1,876,312
Capitalized borrowing costs
Interest on debts and borrowings		400,406	457,973	414,836
Capitalized interest		(384,038)	(456,313)	(357,920)
Interest on debts and borrowing in the consolidated statements of operations		$ 16,368	$ 1,660	$ 56,916

Components of other comprehen_3

Components of other comprehensive (loss) income (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019MXN ($)	Dec. 31, 2018MXN ($)
Derivative financial instruments:
Reclassification of call options and forwards during the year to profit or loss (Note 4)				$ (455,009)
Net gain (loss) on cash flow hedges	$ (87,609)	$ (1,747,686)	$ 263,495	(283,691)
Jet fuel Asian call options contracts
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		(11,993)	11,148	227,509
Net gain (loss) on cash flow hedges		(11,993)	11,148	(174,984)
Jet fuel Zero cost collars
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		(143,224)	256,515	(122,948)
Net gain (loss) on cash flow hedges		(143,224)	256,515	(122,948)
Foreign currency forward contract
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax			(14,241)	$ 66,757
Interest rate Cap
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		(900)	(4,023)
Net gain (loss) on cash flow hedges		(900)	(4,023)
Non derivative financial instruments
Derivative financial instruments:
Gains (losses) on cash flow hedges, before tax		$ (1,591,569)	$ 14,096

Commitments and contingencies_2

Commitments and contingencies (Details) $ in Thousands	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Commitments and contingencies
2021					$ 40,213,000	$ 802,197
2022					138,919,000	2,771,253
2023					265,836,000	5,303,083
2024					705,331,000	14,070,437
2025 and thereafter					3,221,596,000	64,266,652
Total committed expenditures					$ 4,371,895,000	$ 87,213,622
Exchange rate	19.9785	19.9487	7.8095	615.7800	19.9487		18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100

Commitments and contingencies -

Commitments and contingencies - Sale and lease back commitments (Details) $ in Thousands	Apr. 29, 2021$ / $	Dec. 31, 2020$ / $	Dec. 31, 2020Q / $	Dec. 31, 2020₡ / $	Dec. 31, 2020USD ($)	Dec. 31, 2020MXN ($)	Dec. 31, 2019$ / $	Dec. 31, 2019Q / $	Dec. 31, 2019₡ / $	Dec. 31, 2019USD ($)	Dec. 31, 2018$ / $	Dec. 31, 2018Q / $	Dec. 31, 2018₡ / $
Disclosure of maturity analysis of operating lease payments [line items]
Estimated proceeds from aircraft sale					$ 756,828,000	$ 15,097,735
Non-cancellable sale and leaseback contracts of aircraft leases					$ 758,665,000	15,134,381
Exchange rate	19.9785	19.9487	7.8095	615.7800	19.9487		18.8452	7.6988	573.4400	18.8452	19.6829	7.7440	609.6100
Within one year
Disclosure of maturity analysis of operating lease payments [line items]
Estimated proceeds from aircraft sale					$ 209,500,000	4,179,253
Non-cancellable sale and leaseback contracts of aircraft leases					9,720,000	193,901
Between one year and two years
Disclosure of maturity analysis of operating lease payments [line items]
Estimated proceeds from aircraft sale					547,328,000	10,918,482
Non-cancellable sale and leaseback contracts of aircraft leases					47,972,000	956,979
Between two and three years
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable sale and leaseback contracts of aircraft leases					63,222,000	1,261,197
Between three and four years
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable sale and leaseback contracts of aircraft leases					63,222,000	1,261,197
Later Than Four Years
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable sale and leaseback contracts of aircraft leases					$ 574,529,000	$ 11,461,107

Operating segments (Details)

Operating segments (Details) $ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)segment	Dec. 31, 2020MXN ($)segment	Dec. 31, 2019MXN ($)segment	Dec. 31, 2018MXN ($)segment
Operating segments
Number of geographic segments | segment	2	2	2	2
Total operating revenues	$ 1,110,828	$ 22,159,591	$ 34,752,672	$ 27,305,150
Non-derivatives financial instruments	$ (20,614)	(411,222)	(72,949)
Domestic (Mexico)
Operating segments
Total operating revenues		16,572,198	24,594,797	18,493,476
United States of America and Central America
Operating segments
Total operating revenues		$ 5,998,615	$ 10,230,824	$ 8,811,674
United States of America
Operating segments
Percentage of total revenues from external customers	27.00%	27.00%	29.00%	31.00%

Subsequent events (Details) - E

Subsequent events (Details) - Exclude	3 Months Ended
	Mar. 31, 2021
Current Available Seat Miles [Member]
Disclosure of non-adjusting events after reporting period [line items]
Available seat miles (as a percent)	88.30%