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Income tax (Tables)

12 Months Ended

Dec. 31, 2022

Income tax

Schedule of income tax in consolidated statements of operations


		2022			2021			2020
Current year income tax expense		US$	(15,456)		US$	(17,903)		US$	(3,978)
Deferred income tax (expense) benefit			67,595			(12,670)	⁽¹⁾		65,709	⁽²⁾
Total income tax benefit (expense)		US$	52,139		US$	(30,573)		US$	61,731

⁽¹⁾ Includes translation effect by US$ (118)

Schedule of income tax in consolidated statements of OCI


		2022			2021			2020
Deferred income tax related to items recognized in OCI during the year
Net (loss) gain cash flow hedges		US$	(80)		US$	(274)		US$	2,347
Remeasurement (loss) gain of employee benefits			(79)			138			39
Deferred income tax recognized in OCI		US$	(159)		US$	(136)		US$	2,386

Schedule of reconciliation of corporate income tax rate to effective tax rate


		2022		%		2021		%		2020		%
Statutory income tax rate		(39,709)		30.00	%	41,108		30.00	%	(76,036)		30.00	%
Amendment tax return effects and other tax adjustments		1,242		(0.94)	%	(29)		(0.02)	%	(3,563)		1.41	%
Inflation on furniture, intangible and equipment		(309)		0.23	%	(2,323)		(1.70)	%	(873)		0.34	%
Inflation of tax losses		(4,335)		3.28	%	(1,971)		(1.44)	%	(676)		0.27	%
Foreign countries difference with Mexican statutory rate		(9)		0.00	%	124		0.10	%	175		(0.07)	%
Annual inflation adjustment		(11,200)		8.46	%	(7,971)		(5.82)	%	2,591		(1.02)	%
Recorded deferred taxes on tax losses		7		0.00	%	(434)		(0.32)	%	3,733		(1.47)	%
Non-deductible expenses		7,695		(5.81)	%	2,069		1.51	%	12,918		(5.10)	%
Difference in Foreign Exchange income (loss) for tax purposes		(5,521)		4.17	%	—		—		—		—
		(52,139)		39.39	%	30,573		22.31	%	(61,731)		24.36	%

Schedule of consolidated deferred taxes

2022

2021

Consolidated

Consolidated

Consolidated

Consolidated

statement of

statement of

statement of

statement of

financial position

operations

financial position

operations

Deferred income tax assets:

Lease liability

US$

755,855

US$

122,856

US$

633,033

US$

(7,745)

Unearned transportation revenue

58,010

48,176

9,885

(53,134)

Aircraft and engine lease return obligation

77,007

23,951

53,056

15,448

Tax losses available for offsetting against future taxable income

38,387

33,122

4,865

(24,499)

Intangible

29,687

(364)

30,052

10,430

Allowance for doubtful accounts

4,854

(1,510)

6,356

3,599

Employee benefits

2,486

2,104

294

(391)

Employee profit sharing

134

(3,672)

3,805

4,076

Non derivative financial instruments

—

—

—

24,360

966,420

224,663

741,346

(27,856)

Deferred income tax liabilities:

Right of use asset

571,521

106,233

465,382

(57,188)

Supplemental rent

55,479

(7,872)

63,351

(29,592)

Rotable spare parts, furniture and equipment, net

120,561

54,960

65,618

29,015

Provisions

7,345

4,200

2,430

12,789

Inventories

4,594

338

4,256

215

Other prepayments

376

(1,034)

1,431

675

Derivative Financial instruments

33

—

113

—

Prepaid expenses and other assets

8,963

243

8,684

29,017

768,872

157,068

611,265

(15,069)

US$

197,548

US$

67,595

US$

130,081

US$

(12,787)

Schedule of components of deferred taxes in the consolidated statement of financial position


		2022			2021

Deferred tax assets		US$	208,010		US$	141,272
Deferred tax liabilities			(10,462)			(11,191)
Deferred tax assets, net		US$	197,548		US$	130,081

Schedule of reconciliation of deferred tax liability, net


		2022			2021
Opening balance as of January 1,		US$	130,081		US$	146,816
Deferred income tax benefit (expense) during the current year recorded on profits*			67,595			(12,787)
Deferred income tax expense during the current year recorded in accumulated other comprehensive loss			(159)			(136)
Conversion effects			31			(3,812)
Closing balance as of December 31,		US$	197,548		US$	130,081

Schedule of available tax carry-forwards

An analysis of the available tax losses carry-forward of the Company at December 31, 2022 is as follows:


Year		Historical			Inflation adjusted						Total remaining			Year of
of loss		Loss			tax loss			Utilized			amount			expiration
2019		US$	239		US$	304		US$	166		US$	138		2029
2020			5,461			5,461			2,126			3,335		2023
2020			2,745			3,427			103			3,324		2030
2021			6,457			6,404			—			6,404		2024
2021			550			651			—			651		2031
2022			110,922			114,105			—			114,105		2032
		US$	126,374		US$	130,352		US$	2,395		US$	127,957

A breakdown of available tax loss carry-forward of Controladora and its subsidiaries as of December 31, 2022 is as follows:

Historical

Inflation adjusted

Total

loss

tax loss

Utilized

remaining amount

Concesionaria

US$

110,685

US$

113,861

US$

—

US$

113,861

Vuela Aviación

13,476

13,423

3,684

9,739

Comercializadora

2,628

3,256

166

3,090

Viajes Vuela

1,143

1,370

103

1,267

US$

127,932

US$

131,910

US$

3,953

US$

127,957

Unrecognized NOLs

—

US$

127,957

Tax rate

30

%

Deferred income tax

US$

38,387

Schedule of tax balances


		2022
Adjusted contributed capital account (Cuenta de capital de aportación or “CUCA”)		US$	489,080
CUFIN*			226,885

^*The calculation comprises all the subsidiaries of the Company.