The Leading Ultra-Low-Cost Airline Serving Mexico and the US March - PowerPoint PPT Presentation

The Leading Ultra-Low-Cost Airline Serving Mexico and the US March 2015

Disclaimer The information ("Confidential Information") contained in this presentation is confidential and is provided by Controladora Vuela Compañía de Aviación, S.A.B. de C.V., (d/b/a Volaris, the "Company") confidentially to you solely for your reference and may not be retransmitted or distributed to any other persons for any purpose whatsoever. The Confidential Information is subject to change without notice, its accuracy is not guaranteed, it has not been independently verified and it may not contain all material information concerning the Company. The Company, nor any of their respective directors makes any representation or warranty (express or implied) regarding, or assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. None of the Company or any of their respective directors, officers, employees, stockholders or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness. This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this presentation as legal, tax or investment advice and should consult their own advisers in this regard. This presentation contains statements that constitute forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ significantly from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances. 2

Solid fourth quarter 2014 results confirm reversal of trend Disciplined capacity management: International ASMs grew 14% in 4Q and 17% FY, Disciplined capacity management: International ASMs grew 14% in 4Q and 17% FY, while Domestic ASMs remained stable for the quarter, supporting yield recovery. while Domestic ASMs remained stable for the quarter, supporting yield recovery. Total ASMs grew only 3% during the quarter and 8.5% for the year. Total ASMs grew only 3% during the quarter and 8.5% for the year. Total operating revenues: Increase 24% for the quarter and 8% full year, reaching Total operating revenues: Increase 24% for the quarter and 8% full year, reaching Ps. 3,958 million and Ps. 14,038 million, respectively. Ps. 3,958 million and Ps. 14,038 million, respectively. Continuous non-ticket revenue growth: Non-ticket per passenger reached Ps. 313 (US Continuous non-ticket revenue growth: Non-ticket per passenger reached Ps. 313 (US $23 (1) ) and Ps. 279 (US $21 (1) ), for the quarter and full year; an increase of 61% and 31%, $23 (1) ) and Ps. 279 (US $21 (1) ), for the quarter and full year; an increase of 61% and 31%, $23 (1) ) and Ps. 279 (US $21 (1) ), for the quarter and full year; an increase of 61% and 31%, $23 (1) ) and Ps. 279 (US $21 (1) ), for the quarter and full year; an increase of 61% and 31%, respectively. Year end non-ticket revenues represent 19% of Total Revenues. respectively. Year end non-ticket revenues represent 19% of Total Revenues. Costs control & strong profitability: CASM ex fuel was Ps. 74.4 cents (US 5.37cents (1) ) Costs control & strong profitability: CASM ex fuel was Ps. 74.4 cents (US 5.37cents (1) ) during 4Q and Ps. 71.6 (US 5.38 cents (1) ) FY; maintaining lowest unit cost in the Americas. during 4Q and Ps. 71.6 (US 5.38 cents (1) ) FY; maintaining lowest unit cost in the Americas. EBITDAR margin of 31% and 22%, an increase of 16.1 p.p. and 0.4 p.p., for the quarter EBITDAR margin of 31% and 22%, an increase of 16.1 p.p. and 0.4 p.p., for the quarter and FY, respectively. and FY, respectively. Positive cash flow generation, strong balance sheet and good liquidity: Net increase Positive cash flow generation, strong balance sheet and good liquidity: Net increase of cash by Ps. 342 million for the quarter; generating 16% of LTM revenues and negative of cash by Ps. 342 million for the quarter; generating 16% of LTM revenues and negative net debt (or positive net cash position) of Ps. 1,017 million. net debt (or positive net cash position) of Ps. 1,017 million. Notes: 3 (1) Converted to USD at an average exchange rate corresponding for the period.

Volaris – Mexico’s Ultra-Low-Cost Carrier’s snapshot at 30,000 feet Serving to 57 destinations throughout Mexico and the US Volaris’ destinations 2008 2014 CAGR Portland Unit cost Chicago (Midway/O’Hare) Sacramento (CASM ex-fuel; 5.5 5.4 -0.4% Oakland Denver cents, USD) (1) Reno San Jose Fresno Las Vegas Passenger FY14 Int. Pax FY14 Int. Pax Ontario Los Angeles Revenue 28% Revenue 28% demand 3.2 9.7 +20.5% San Diego Phoenix (RPMs, bn) Tijuana Mexicali Dallas Ciudad Juárez Aircraft Aircraft Houston Houston 21 21 50 50 +15.6% +15.6% FY14 Dom. Pax FY14 Dom. Pax FY14 Dom. Pax FY14 Dom. Pax Orlando Orlando Hermosillo Hermosillo (End of Period) San Antonio Revenue 72% Revenue 72% Chihuahua Ciudad Obregón Monterrey Fort Lauderdale Passengers Los Mochis 3.5 9.8 +18.7% Torreón (mm) (2) Culiacán La Paz Zacatecas Tampico Los Cabos San Luis Potosí Mazatlán León Durango Aguascalientes Mérida Operating revenue Tepic Cancún Querétaro 397 1,056 +17.7% Guadalajara (mm, USD) (1) Morelia Puerto Vallarta Cd. de México/D.F. Colima Veracruz Toluca Villahermosa Puebla Adj. EBITDAR Uruapan Tuxtla Gutiérrez 67 232 +23.0% Oaxaca (mm. USD) (1) Acapulco Tapachula Huatulco Adj. ROIC (pre- Domestic market share (3) 11.0% 13.5% +2.5pp tax) 22.7% 23.0% 20.7% 12.2% Notes: 2008 2012 2013 2014 (1) Converted to USD at an average annual exchange rate (2) Corresponds to the number of booked passengers (3) Based on number of passengers, domestic and international passengers 4 Source: Company data, SCT-DGAC

Volaris’ low base fares stimulate demand and drive continuing growth Since its launch, Volaris has stimulated new demand in the Mexican market through an aggressive revenue management strategy that drives lower fares and higher load factors Lower base Stimulation fares of demand Resilient ULCC business model driving high, profitable growth Lower cost More ancillary revenue More capacity 5

Volaris’ ULCC business model is clearly differentiated from legacies, hybrids and other LCC’s Aeromexico Interjet VivaAerobus Volaris � � � � CASM FY 2014 (cents, USD) (1) 9.7 (2) 13.8 13.1 8.8 � ≈ � � Low ticket prices FY 2014 Average Fare (USD) (1) 45 (2) 167 103 87 � � � � Non-ticket rev. exc. Cargo FY 2014 Non-ticket rev. exc. Cargo per pax (USD) (1) 23.4 (2) Non-ticket rev. exc. Cargo per pax (USD) 6.7 6.7 8.5 8.5 23.4 19.2 19.2 � ≈ � � Modern & uniform fleet Average age fleet (years) 8.9 6.4 19.7 4.2 � � � � High daily utilization Block hours per day 11.4 8.8 8.4 12.3 � ≈ � � Other/ eg. (No GDS) Legacy < Hybrid/LCC < ULCC Notes; (1) Converted to USD at an average exchange rate corresponding for the period, $13.2973 Ps. (2) Figures updated as per latest public reports as of September YTD 2014 6 Source: Company data, data airlines public information, DGAC reports, MI DIIO

Volaris has a best-in-class unit cost structure Lowest unit cost in the Americas (1) CASM and CASM ex-fuel (FY 2014, USD cents) (3) 17.4 15.2 14.9 5.5 13.8 13.6 13.1 12.5 4.5 5.2 11.0 4.6 10.5 4.5 5.5 9.7 4.0 9.6 8.8 4.3 4.0 3.8 4.2 3.4 11.9 10.4 9.9 9.2 8.6 8.5 8.0 6.6 6.6 5.9 5.5 5.4 (4) (4) (4) (4) Avianca LatAm Aeromexico Gol Interjet Copa VivaAerobus SouthWest Allegiant Spirit DCOMPS Latin American Carriers US LCCs US Network Carriers (2) Denotes fuel cost per ASM Notes: (1) Based on CASM among the publicly-traded airlines (2) DCOMPS= Direct Competitors: Average CASM and CASM ex-fuel; US network carriers include: Delta, United, Alaska Airlines, American Airlines (3) Non-USD data converted to USD at an average exchange rate corresponding for the period, $13.2973 Ps. 7 (4) Based on CASM among the publicly-traded airlines as of September YTD 2014 Source: Company data, Airlines public information