Volaris announces adjustments in hedging relationships in respect of non-derivative financial instruments, which resulted in a benefit

MEXICO CITY, Oct. 5, 2020 /PRNewswire/ — Volaris* (NYSE: VLRS and BMV: VOLAR), the ultra-low-cost airline serving Mexico, the USA and Central America, declares the next changes to its hedging relationships in respect of non-derivative monetary devices.

In accordance with IFRS 9, Volaris decided that as of June 30, 2020 sure of its non-derivative monetary devices designated as hedging relationships had been now not efficient at offsetting the hedged threat. These accounting adjustments had been due decrease jet gas consumption than anticipated, which was straight associated to the adversarial have an effect on of COVID-19. The influence of this adjustment for the six months ended June 30, 2020 was a good thing about Ps.120 million within the Firm´s internet loss for the interval. This quantity was reclassified from different complete revenue to complete monetary end result. Additional, Ps.53 million had been additionally reclassified from different complete revenue to working bills on account of the completion of a forecasted transaction designated in a hedge relationship.

The changes are offered under:

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Assertion of Operations

Unaudited adjusted figures	Three months ended June 30, 2020 (Reported)	Changes	Three months ended June 30, 2020
(In tens of millions of Mexican pesos)
Whole working revenues	1,526	–	1,526
Working bills	3,873	(53)	3,820
Working loss	(2,347)	53	(2,294)
Complete monetary end result	(1)	120	119
Earnings tax profit	704	(52)	653
Web loss	(1,644)	121	(1,523)

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. and Subsidiaries
Consolidated Assertion of Monetary Place

Unaudited adjusted figures	At June 30, 2020 (Reported)	Changes	At June 30, 2020
(In tens of millions of Mexican pesos)
*Belongings*
Whole present belongings	15,522	–	15,522
Whole non-current belongings	52,261	(52)	52,209
Whole belongings	67,783	(52)	67,731
*Liabilities*
Whole short-term liabilities	25,124	–	25,124
Whole long-term liabilities	46,827	–	46,827
Whole liabilities	71,951	–	71,951
*Fairness*
Capital inventory	2,974	–	2,974
Different capital accounts	1,967	–	1,967
Retained losses	(2,698)	121	(2,577)
Collected different complete losses	(6,409)	(173)	(6,582)
Whole fairness	(4,167)	(52)	(4,219)

The knowledge included doesn’t present data on the corporate’s future efficiency. Volaris’ future efficiency is determined by many components and it can’t be inferred that any interval’s efficiency or its comparability yr over yr will likely be an indicator of the same efficiency sooner or later.

About Volaris:
*(“Volaris” or the “Firm”) (NYSE: VLRS and BMV: VOLAR), is an ultra-low-cost service (ULCC), with point-to-point operations, serving Mexico, the USA and Central America. Volaris gives low base fares to construct its market, offering high quality service and in depth buyer selection. Since starting operations March 2006, Volaris has elevated its routes from 5 to greater than 142 and its fleet from 4 to 84 plane. Volaris gives greater than 304 each day flight segments on routes that join 41 cities in Mexico and 21 cities in the USA with one of many youngest fleets in The Americas. Volaris targets passengers who’re visiting associates and family, cost-conscious enterprise and leisure vacationers in Mexico and in chosen locations in the USA and Central America. Volaris has obtained the ESR Award for Social Company Accountability for eleven consecutive years. For extra data, please go to: www.volaris.com