Finance income and cost

12 Months Ended

Dec. 31, 2020

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