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

currencies translated to

functional currencies

Average

Local

Functional

exchange rate

Exchange rate

exchange rate

Exchange rate

exchange rate

Exchange rate

Country

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

7.7292

7.8095

7.7066

7.6988

7.5337

7.7440

El Salvador

U.S Dollar

U.S. dollar

21.4961

19.9487

19.2618

18.8452

—

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