Volaris Investor Day New York Stock Exchange September 13, 2017 - PowerPoint PPT Presentation

Volaris Investor Day New York Stock Exchange September 13, 2017

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. Neither 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 nor 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

Agenda 09:30 am Enrique Beltranena, CEO 10:00 am Holger Blankenstein, CCO 10:50 am José Luis Suárez, COO 11:10 am Fernando Suárez, CFO 11:30 pm Q&A session 12:00 pm Event concludes Source: Volaris Mexico City International Airport (AICM)

Enrique Beltranena Chief Executive Officer

Since our last Investor Day in March 2016 we have reached several milestones… Volaris entered the Volaris Central America Mexican Bolsa IPC-30 first flight Index 2017 Air Transport First NEO operator in World’s value airline of North America the year One of the 15 most on-time Opening of 30 new routes airlines worldwide according and 9 new destinations to OAG (1) (1) Official Airline Guide Enrique Beltranena, CEO 5

Volaris at 30,000 feet: the largest ULCC in Latin America 168 routes and 68 destinations across 6 countries 16M customers, the largest ULCC in Latin America (1) 67 aircraft with an average of 180 seats (2) 24.8 billion MXN (1.3 billion USD) of total revenue (3) 4.9 cents of CASM ex-fuel (3) , one of the lowest in the world % 30% EBITDAR margin (3) (1) As of LTM August 2017; Source: DGAC (2) As of August 31, 2017 (3) As of LTM June 2017 Enrique Beltranena, CEO 6

The source of our success: a strong business model that produces a consistent and profitable growth Network Passengers (Routes – end of period) (Thousands LTM Aug 2017) 168 16,088 4.6x 6.0x 3,505 28 2008 Aug 17 2008 LTM Aug 17 % Total revenues EBITDAR (Total Operating Revenues – M MXN) (LTM EBITDAR – M MXN and EBITDAR margin - %) 30% 24,837 7,473 17% 5.6x 10.0x 4,416 747 2008 LTM Jun 17 2008 LTM Jun 2017 Enrique Beltranena, CEO 7

Volaris among the best-of-breed On board passengers CAGR (2012 to 2016) Non-ticket as % of total revenue (LTM June 2017) Spirit IndiGo 27% 48% Spirit Allegiant 45% 20% Volaris 20% Wizz 42% Wizz Air 19% Ryanair 27% 26% Azul 18% Volaris Air Asia 14% Aeromexico 14% Allegiant Azul 12% 14% 1 st Largest ULCC 5 th Airline in non-ticket 1 st 5 th Ryanair 11% Gol 13% in Latin America revenue (1) Jetblue 8% IndiGo 11% Aeromexico 8% Jet Blue 10% On-time performance (July 2017) CASM ex-fuel, US cents (LTM June 2017) Volaris 87% Wizz Air 3.8 4 th Lowest CASM 4 th Azul 85% Ryanair 4.0 ex-fuel in airline industry Gol 83% AirAsia 4.4 4.9 IndiGo 81% Volaris Ryanair Spirit 80% 5.7 Wizz Air IndiGo 80% 5.9 Southwest 75% Allegiant 6.3 Spirit 74% Gol 7.1 13 th 13 th Most on-time Allegiant 69% Aeromexico 7.7 airline of the world Aeromexico 67% Jet Blue 8.1 (1) As of 2016 FY Note: non-USD data converted to USD using an average of period exchange rate Source: Airlines public information and OAG Enrique Beltranena, CEO 8

Volaris has a strong position to compete in the Mexican market Mexican airline market Volaris market share (LTM June 2017) (1) • Leading ULCC in Mexico and Latin America 27% • Youngest and most efficient fleet in #3 Mexico 21% #1 • Highest seat density 36% #4 13% • Highest fleet utilization Average seats per aircraft and fleet age (June 2017) Fleet utilization (LTM June 2017) 180 180 12.8 12.2 136 10.7 119 8.8 Volaris Aeromexico Interjet Viva Volaris Aeromexico (2) Interjet Viva 4.5 years 7.4 years 6.1 years 4.7 years (1) Passenger market penetration among Mexican carriers (domestic and international) (2) Aeromexico mainline (excludes wide-body fleet) and Aeromexico Connect Note: Estimated figures Source: Airlines public information, Airfleets, DGAC and MI-DIIO Enrique Beltranena, CEO 9

Volaris 1H 2017 growth was briefly slowed due to geopolitical and macro issues Foreign exchange rate (USD-MEX) Average economic fuel price per gallon (USD) +13% +3% +48% +12% 1.82 20.39 1.74 1.56 18.6 1.23 18.05 18.02 1Q 2016 1Q 2017 2Q 2016 2Q 2017 1Q 2016 1Q 2017 2Q 2016 2Q 2017 The first half of 2017 brought some challenges to Volaris • Geopolitical (US elections, travel bans and warnings, immigration policy, DACA and NAFTA debates) • Depreciation of the Mexican Peso • Increase in jet fuel price • Slot regime constraints in Mexico City These factors had an impact mostly on international traffic Enrique Beltranena, CEO 10

Softer demand required us to manage capacity Lower fleet utilization (hours per day)… 13.2 12.9 Volaris’ flexible network, fleet and 12.7 operation allow us to quickly 12.5 respond to market challenges • No new aircraft deliveries in 1H 1 st Quarter 2 nd Quarter 2017 and 3 re-deliveries 2016 2017 • Utilization adjustment …Resulted in lower ASM growth projections for 2017 15% to 17% • Capacity management 15% − New routes and frequencies revision 13% to 14% − Itinerary adjustment − Domestic vs International growth mix calibration Currently Beginning of the year Enrique Beltranena, CEO 11

The Mexican economy’s performance and outlook remains resilient GDP growth (% y-o-y) (1) Unemployment and consumer confidence 4.5% 120 (Consumer confidence index 2010=100) 2.3% 2.2% 2.2% 2.1% 2.1% 1.8% 1.6% (Unemployment rate %) 0.8% 4.0% 105 3.5% 90 -1.4% 3.0% 75 2016 2017E 2018E 2016 2017E 2018E 2016 2017E 2018E 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 Mexico USA Latin America and Caribbean Unemployment rate Consumer confidence Mexican economic activity index (2) (index 2010=100) US remittances to Mexico (% y-o-y) 120 13% 119 119 10% 118 7% 6% 5% 117 117 5% 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 (1) World Bank Global Economics Prospects June 2017 (2) IGAE (Indicador Global de la Actividad Económica) Source: World Bank, INEGI and Banxico Enrique Beltranena, CEO 12