Volaris Investor Day March 15, 2016 Disclaimer The information - - PowerPoint PPT Presentation

Volaris Investor Day

March 15, 2016

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

• n 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.

Disclaimer

2

Agenda

12:15 pm Enrique Beltranena, CEO 1:00 pm Holger Blankenstein, CCO 1:40 pm José Luis Suárez D., COO 2:00 pm Fernando Suárez G., CFO 2:20 pm Q&A session 3:00 pm Event concludes

3

Enrique Beltranena CEO

Volaris´ first 10 years: setting the foundations for a more “democratic” air travel market

100 routes 10 million passengers 50 aircraft / 50 million passengers Entry into Mexico City airport

2006 2008 2010 2012 2014 2016

Placement of incremental 44 aircraft order First A320 First A321 Launch of USA routes Start of

• perations

“You decide” unbundling campaign IPO Launch of Central America routes

2007 2009 2011 2013 2015

5

Volaris has been a key player in the Mexican air travel market growth

(1) Among domestic carriers Source: DGAC-SCT

6

0% 25% 50% 75% 100% Market Volaris 9% 22% 22% 21% 22% 23% (million passengers)

Domestic market penetration

(million passengers)

International passenger penetration(1)

0% 25% 50% 75% 100% Market Volaris 13% 15% 18% 20% 23% 23% 25% 12% 8% 22 27 28 24 24 25 28 30 33 37 7 7 7 7 6 5 6 7 8 10

Volaris has achieved sustained high growth

2008 2009 2010 2011 2012 2013 2014 2015

12 million

passengers Non-ticket per

• pax. (MXN):

$338

TRASM (MXN cents):

$129

• Avg. fare (MXN):

$1,181

7

Low cost structure, record EBITDAR margins and ROIC increase

• Adj. EBITDAR margin: 36%

CASM ex-fuel: 4.5 US cents

(1)

• Adj. ROIC: 22%

(2)

(-6.9% yoy) (+13.7pp yoy) (+8.2pp yoy)

Full year 2015 highlights

(1) Converted to USD at a period end exchange rate (2) Pre-tax; adjusted to aircraft rents

8

Routes Destinations Domestic airports International airports Aircraft

148 63 40 23 59

Volaris today: The first successful ULCC in Latin America, ready for the next stage of growth

Passenger market penetration(1)

29%

(1) Passenger market penetration for January 2016 Source: Company data; DGAC

9

• 0.6

6.0 4.8 2013 2014 2015 1.3 2.3 2.5 1.5 2.5 3.1 2013 2014 2015 GDP Non-oil GDP

The Mexican macro environment is poised to support Volaris´ continued growth

Private Consumption growth (%) General Economic Activity Indicator growth (1) (%) USD Remittances growth (%) GDP growth (%)

(1) IGAE (Mexican General Economic Activity Indicator) Source: INEGI; Banxico

1.4 2.1 2.5 2013 2014 2015 1.71 2.79 5.19 2013 2014 2015

10

2.05 0.55 0.45 0.42 0.27 0.25 0.21 0.04 0.01 USA Chile Brazil Colombia Peru Mexico Argentina Costa Rica Paraguay

Domestic air trips per capita (2) 2010 demographic composition by age Middle class as a % of Mexican population (1)

(1) Classes are defined by the following monthly family income: AB<MXN $98,500, C+MXN $40,600- $98,499, C MXN $13,500- $40,599, D+ MXN $7,880 $13,499, D MXN $3,130- $7,879 and E <MXN $3,129 (2) ALTA 2014 Yearbook air trips per capita Source: INEGI; CONAPO

Mexico’s best kept secret: Favorable demographics and underpenetrated air travel market

10 5 5 10 Male Female 2030 estimate

Million inhabitants

0-19 years 20-64 years 65+ years

11

26% 20% 35% 25% 17% 30% 14% 17% 7% 8% 2010 2025E D/E D+ C C+ AB

Mexico’s geography supports air traffic growth

Tijuana Cancun Mexico City Tapachula Reynosa Seattle Atlanta Chetumal Omaha Denver

12

22 37 18 26 5 12 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Domestic USA Other international

Mexican air travel market has the characteristics of a high growth emerging market

Segment passenger volume (millions)

45 53 75

(1) Includes regular and charter Source: DGAC-SCT; INEGI; Banco de México

5.7% CAGR

Yoy Growth 15.0% 2.1%

• 11.9%

3.3% 4.0% 8.3% 8.3% 8.3% 12.3% GDP growth 5% 3.2%

• 4.7%

5% 4.0% 3.8% 1.7% 2.1% 2.5% GDP multiplier 3.0 0.7 2.5 0.6 1.0 2.2 4.9 4.0 4.9 52 47 49 51 55 60 65

13

Fuel prices and the Mexican peso inversely correlated

20 40 60 80 100 120 10 11 12 13 14 15 16 17 18 19 20

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

USD/MXN WTI

Source: Bloomberg

MXN/USD FX rate and WTI prices (Mar 2014 - Feb 2016)

MXN/USD FX rate WTI prices

14

Volaris ULCC model perfect fit for such a market

The first 10 years: set the foundations for a more “democratic” air travel market in Mexico The Mexican macro environment is poised to support Volaris´ continued growth Mexico’s geography supports air traffic growth Volaris is the first successful ULCC in Latin America and is ready for the next stage of growth Mexico’s best kept secret is its favorable demographics and underpenetrated air travel market

15

Mexican air travel market has the characteristics

• f a high growth emerging market

Holger Blankenstein Chief Commercial Officer Fernando Suárez G. Chief Financial Officer José Luis Suárez D. Chief Operating Officer

The Volaris flight crew

Enrique Beltranena Chief Executive Officer

16

Holger Blankenstein CCO

Volaris serves 148 routes to 63 destinations throughout Mexico, USA and Central America

Volaris footprint after 10 years of flight: A point-to-point network with growth potential

Portland Reno Sacramento San Francisco/Oakland San Jose Fresno Ontario Los Angeles San Diego Las Vegas Phoenix Denver Dallas Houston San Antonio Chicago New York Orlando Fort Lauderdale Tijuana Mexicali La Paz Los Cabos Hermosillo

• Cd. Juarez

Chihuahua

• Cd. Obregon

Monterrey Los Mochis Torreon Culiacan Mazatlan Durango Tampico Zacatecas San Luis Aguascalientes Guadalajara Puerto Vallarta Leon Uruapan Morelia Queretaro Mex.City Toluca Veracruz Acapulco Huatulco Tapachula Puebla Oaxaca Tuxtla Villahermosa Chetumal Cancun Merida Guatemala San Jose, CR San Juan, PR

Routes Dom. USA CAM Tijuana 29 1

• Mexico City

25 8

• Guadalajara

19 20 2 Monterrey 18 1

• Cancun

16 1 2 Other 3 13

• Total

100 44 4

Note: Not mutually exclusive; E.g. Tijuana-Mexico City is included both in Tijuana and Mexico City

18

Resilient Volaris Ultra-Low Cost Model

19

Strong, diversified growth Ultra low costs “Clean”, low base fares More price sensitive customers More ancillaries

(“You decide”)

We have created a resilient ULCC model by stimulating demand by reducing base fares

Commercial metrics: Our low fare philosophy enables profitable growth

Important Less Important Not important

• Route profitability
• TRASM
• Volume/price elasticity
• ASM growth
• Yield
• RASM
• Market share
• Other airlines fares
• “Trophy” routes

We manage the network for profitability Developing an efficient network to support a low cost operation is fundamental

“Clean”, low base fares Strong, diversified network Ultra low costs More price sensitive customers More ancillaries

(“You decide”)

Volaris focuses on offering low base fares to be competitive with bus fares

70 75 80 85 90 95 100 1,000 1,100 1,200 1,300 1,400 1,500

…and competitive with bus fares

Monitoring competition (15-16)

Lowest base fares most of the time…

Volaris average fare (MXN)*

We continue to lower base fares…

Source: Company data, Excelsior

Market

Bus Average

Culiacan-Tijuana $1,260 $1,310 Guadalajara- Hermosillo $1,190 $1,420 Guadalajara-Tijuana $1,870 $1,910 Mexico–Tijuana $1,940 $2,120 Bajío-Tijuana $2,160 $2,090 Cancún-México $1,600 $1,620 Durango-Tijuana $1,580 $2,050 Guadalajara-Monterrey $1,170 $1,060 México-Monterrey $1,240 $1,100

22

“Clean”, low base fares Strong, diversified network Ultra low costs More price sensitive customers More ancillaries

(“You decide”)

Volaris has the right customer focus for future demand stimulation

Core customers: Price sensitive travelers Visiting Friends & Relatives (VFR) Leisure Small & medium enterprises (SME)

• 49% of total
• +37%
• From 38% to 49%
• 26%
• +24%
• 18% to 29%
• 25%
• +29%
• 10% to 19%

Passenger growth from 4 M in 2010 to 12 M in 2015 Passenger growth from 4 M in 2010 to 12 M in 2015

• Routes today
• Market growth

2010-2015

• Volaris share

growth 2010-2015

24

Source: Company data, DGAC-SCT

ULCC model First sale Trial Ticket giveaway #NoMásCamión Strong conversion rate

Stimulating demand from bus to air substitution

Source: Company data, Secretaría de Comunicaciones y Transportes (SCT), Dec. 2014

Mass media campaigns Digital capabilities Attracting 1st time flyers Education

Bus Switching Program Key Highlights

• 15M targeted impacts in bus cities
• 40M digital impacts with #NoMásCamión
• Geo-fenced communication near bus terminals
• 30K free tickets distributed in bus stations
• 2 week road show in key bus cities
• 30% of our costumers first considered bus
• 85% of costumers had never flown Volaris
• 50K pre paid cards in convenience stores
• Incremental online sales during first 6 months with

“Air travel at the price of a bus ticket”

25

ULCC Customer ULCC Customer Trial Trial Education First Sale First Sale

26

Geo-fencing

Reaching over 35 million customers on and off- line with our bus switching campaign

2,000 4,000 6,000 8,000 10,000 12,000 5 10 15 20 25

Trip time on bus (Hrs) Weekly bus seats

We have more than 20 million potential customers to capture in 50+ domestic bus routes

Routes with a distance longer than 200 miles Source: Company data and analysis; SCT, bus websites

57 more domestic Mexico routes in scope for bus switching Too short for air travel Too small for profitable A320 operation Bus routes

27

Low base fares have also stimulated price sensitive leisure travelers

Cancun 728 2,329 220% Los Cabos 133 405 205% Puerto Vallarta 68 257 279% Mazatlán 69 135 96% Acapulco 72 133 85% Huatulco 2 45 1,863%

Initiatives

• Improved vacation

packages value proposition

• Stepped-up online

presence on volaris.com

• Maximized cross

and up-sell of hotel, car, tours, etc.

• Increased share
• f wallet of leisure

customers Destinations Volaris Seats 2010 (K) Volaris Seats 2015 (K) %

28

Market growth Volaris growth Tijuana Guadalajara Los Cabos Cancun Vallarta

Note: Markets not mutually exclusive, contested domestic markets

• Source. Company data, airlines public information

Culiacán Hermosillo Segment passenger CAGR Market vs Volaris (2010-2015) Monterrey Mexico City

15.3%

2.3%

10.2%

6.6%

27.2%

6.6%

22.5%

5.3%

38.2%

9.7%

32.3%

6.0%

20.6%

7.2%

74.3%

10.3%

27.9%

10.8%

29

Volaris is the engine of growth for leisure and VFR markets in Mexico

“Clean”, low base fares Strong, diversified network Ultra low costs More price sensitive customers More ancillaries

(“You decide”)

Non-ticket revenue has been a major growth driver

0.5 1 1.5 2 2.5 3 3.5 4 4.5 50 100 150 200 250 300 350 400 (billion, MXN)

Non-ticket revenues

(MXN)

Non-ticket revenues per passenger

31

Several successful initiatives over the last two years have driven ancillary revenue growth to current level

Initiative Description Sales Contribution 2015

Baggage policy

• Introduced carry on fee
• Improved checked bag fees

Travel commerce Dynamic pricing Seat assignments Combos

• Launched sale of travel products in

booking and preflight journey

• Optimized ancillaries price points through

the customer journey

• Segmented seat zones to maximize seat

value location VClub

Strong contribution Minor contribution

$$$$ $$$$ $$$$ $$$$ $$$$ $$$$

$$$$ $$$$

• Improved options with a targeted ancillary

combos offering

• Started fee based loyalty program with

exclusive access to discounted fares

32

Three avenues of ancillary growth in the coming years

30+ product pipeline 30+ product pipeline

2 1

Dynamic pricing & revenue management More touch points to sell throughout customer journey

Data COLLECTION and ANALYTICS Data COLLECTION and ANALYTICS Product Price Channels 3

Today Full Potential

33

“Clean”, low base fares Strong, diversified network Ultra low costs More price sensitive customers More ancillaries

(“You decide”)

Our growth comes from a mix of factors: demand, expansion, market and route performance

8 9 10 11 12 13 14 15 2014 additional frequencies new routes joining existing airports 2015 Billions Domestic International

Note: Includes Charter operations Source: Company data

Key Notes

• Fleet increase

from 50 to 56

• Density: 161 vs.

168 seats per departure

• Favorable

domestic conditions generated market

• pportunities
• 25 new routes

were operated during 2015

• Beginning of

Guatemala, San Jose, CR and San Juan, PR

74% 26% 54% 46% 70% 30% 11.8 1.8 0.3 14.1

Growth (%) 36.5% 12.5%

Volaris capacity (ASMs)

Growth (%) 15.6% 2.4% 0.8% 18.8%

35

0.1

For 2016, we will carefully adapt capacity growth based

• n market conditions and route performance

New destinations & countries New destinations & countries

+

3.0% - 4.0%

2016 capacity growth contribution

Additional frequencies Additional frequencies 12.5% - 13.0%

+

Joining existing airports Joining existing airports

+

Total ASM growth Total ASM growth

=

We have flexibility to modify our growth up or down, through aircraft utilization, lease extensions and new leases

1.5% - 2.0%

17% - 19%

36

103 103 116 112 126 119 119 129 2008 2009 2010 2011 2012 2013 2014 2015

Positive unit revenue momentum

TRASM (MXN, cents)

TRASM focus as part of key commercial objective 3% CAGR

38

Accelerating digital transformation

As a ULCC, Volaris will remain focused on direct, online distribution

Volaris’ distribution channels mix Online channels Online channels 2006 2015

Online channels (web & mobile) Online travel agencies Call center Airports Traditional travel agencies

0% 8% 20% 50% 20% 10% 11% 66% 11% 4%

39

Low cost digital channels require presence on multiple screens throughout the customer journey

Inspiration Planning Booking Experience Sharing

Shows usage of device throughout the customer journey Improve content and speed to attract organic search

TABLET

Focus on speed of transaction, site usability and quality

DESKTOP

Improving automated customer assistance functions Enhance self-service functions; sell services at the airport Add destination related services

MOBILE

Add relevant & up- to-date flight information

40

41

Desktop

• nly website

Fully responsive & adaptive website Creative driven projects Data informed projects Anonymous marketing Predictive marketing Static marketing Test & learn marketing

Test Measure Analyze Learn Understand Predict Target

Develop campaign Measure results Develop new campaign ….

Web site heat map analysis

Volaris is in the process of digital transformation

Before Volaris Today

Multiscreen

42

42

Growth & Digital marketing and distribution

Strong, diversified growth Ultra low costs “Clean”, low base fares More price sensitive customer s More ancillaries

(“You decide”)

Commercial strategy for 2016

Digital marketing and distribution

• Focus on digital channels
• App, mobile and traditional website
• Data informed decisions
• Lower base fares
• Be least expensive
• ption to fly
• Be competitive with

bus fares

• Focus on price sensitive

travelers

• Stimulating demand from

bus to air substitution

• Capacity growth in

Mexico, USA and Central America

• Focus on non-

competed or high fare markets

• Increase VFR and

leisure markets

• More products
• Intelligent pricing
• More presence of

products throughout customer journey

José Luis Suarez D. COO

Running an efficient

• peration focused on
• ur customers and

safety

Volaris

Spirit Southwest JetBlue Virgin America Frontier

On-time performance(1)

81%

69% 80% 76% 80% 73% Schedule completion(2)

99.8%

98.3% 98.5% 99.7% 98.2% 99.0% Aircraft utilization(3)

12.7

12.5 NA 11.9 10.9 NA Mishandled bags(4)

1.1

2.6 3.3 1.8 0.8 3.1

World class operation translates into high efficiency and low cost

(1) Arrivals + 15 minutes (2) Total scheduled flights minus cancelations (3) Block hour per day (4) Reports per 1,000 passengers Source: DOT; airlines public information

45

4.6 4.5 2015 2020E

Fleet utilization (block hours per day)

11 12 13 14 15 1Q15 2Q15 3Q15 4Q15

Fleet age (years) Fuel consumption (gal/ASM)

0.0112 0.0113 0.0114 0.0115 0.0116 0.0117 0.0118 0.0119 0.0120 0.0121

Average seats per aircraft

A young and fuel efficient fleet is the key to an effective and low cost operation

46

168 189 2015 2020E

Cost efficient operation

15 12 5 13 13 13 28 28 28 2 8 18 10 10 10 2 6 2016E 2017E 2018E A319 A320 A320 w/sharklets A320 NEO w/sharklets A321 w/sharklets A321 NEO w/sharklets

Fleet plan with flexibility that enables capacity management

Note: NEO stands for the Airbus new engine option; CEO stands for the Airbus current engine option (1) Net fleet after additions and returns

68 73 80

Contractual fleet obligations (number of aircraft)(1)

• A321 (CEO and NEO)
• 230 seats (up-gauge)
• Cost dilution
• A320 NEO
• Combined fuel consumption

reduction by approx. 17%

• A320 CEO with sharklets
• Fuel consumption reduction by
• approx. 3%
• A319
• Decrease A319 fleet
• Operations to Midway and

Central America

• Ramping up markets

47

Source: Airbus

A320 A321 A320 NEO A321 NEO

Illustrative NEO range NEO characteristics

• Pratt & Whitney Pure Power

PW1100G-JM engine

• 17% combined fuel efficiency (approx.)
• 3% sharklet fuel efficiency (approx.)
• 50% noise reduction (approx.)
• CO2 and NOx emissions reduction
• Maintenance:
• Fewer stages
• Lower parts count

48

NEO engine-powered fleet provides enhanced fuel efficiency ideal for ULCC operation

Improving facilities, for an efficient operation

Tijuana hangar

• Proximity to the U.S., (spare parts)
• Line maintenance
• DGAC certifications
• FAA licenses - FAR 129 and 145

Training center

• New Airbus facility in Mexico City
• Flight attendant training center
• Maintenance, mechanics school alliances

Pilot sourcing

• Cadet program since 2007, source of
• approx. 40% of actual pilots
• Development of 5 crew bases

49

Tijuana bi-national terminal

• Market leader in Tijuana with over 30

destinations

• Convenient and seamless border-crossing

Focus on airport operations and technology improvements

Efficiency enhancement in the travel process

• Mobile paperless boarding
• Home printed bag tag
• Airport new innovative table top self

check-in

• Ancillary revenue airport strategy

New airport signaling

• Clear, efficient and direct communication
• New web check-in boarding pass

50

IATA Operational Safety Audit (IOSA) System

Operational and safety certifications

IATA Safety Audit for Ground Operations (ISAGO) ISO 9001:2008 and 14001:2004

51

Fernando Suárez G. CFO

8,879 11,686 13,002 14,037 18,180 5,000 10,000 15,000 20,000 2011 2012 2013 2014 2015 (MXN mm) 20% 16% 15% 14% 10% 7% 5% 0% 10% 20% 30% 1,238 2,475 2,806 3,081 6,492 2,000 4,000 6,000 8,000 2011 2012 2013 2014 2015 (MXN mm)

• Adj. EBITDAR

Revenue growth and margin expansion

(1) Gol as of September 2015, LTM Source: Company data, airlines public information

53

Revenue FY 2015 Adj. EBITDAR margin Revenue CAGR 2011-2015

35.7% 24.1% 24.1% 23.3% 19.5% 17.6% 14.4% 0.0% 10.0% 20.0% 30.0% 40.0%

20% CAGR 51% CAGR

4.9 11.3 8.3 8.3 7.8 6.7 6.4 8.6 5.8 5.5 10.4 2.1 3.6 3.2 2.7 2.8 3.6 2.8 2.6 2.6 2.2 2.6

• Economies of scale
• Dilute fixed costs
• High seat density
• Young and fuel efficient fleet
• Sharklet rollout
• Average age of 4.6 years (4)
• Low fuel burn
• Productive network
• Point-to-point
• No connections complexity
• High aircraft utilization
• On average 12.7 block hours a day

during FY 2015

Volaris has a best-in-class unit cost structure

(1) Based on CASM among the publicly-traded airlines (2) Non-USD data converted to USD at an average exchange rate (3) DCOMPS= Direct Competitors: Average CASM and CASM ex-fuel; US network carriers include: Delta, United, Alaska Airlines and American Airlines (4) As of December 2015 (5) Gol as of LTM Sep15 Source: Company data, airlines public information

Latin American carriers US LCCs US network carriers (3)

Continued cost improvement potential

54

Cost structure

Lowest unit cost in the Americas(1)

In line with best-in-class ULCCs

CASM ex-fuel (FY2015, USD cents) (2)

7.0 15.0 11.5 11.0 10.6 10.4 9.2 11.2 8.5 7.7 13.0

8.2 7.7 8.5 9.2 10.4 10.6 11.1 11.2 11.5 13.0 15.0 . Spirit Allegiant Copa Gol Interjet Aeromexico Southwest Latam US network carriers Avianca

Our cost structure enables us to lower base fares below competitors unit cost

Volaris TRASM is below most competitors CASM (1)

TRASM and CASM (FY2015, USD cents) (2)

(1) Based on CASM and TRASM among the publicly-traded airlines (2) Non-USD data converted to USD at an average exchange rate (3) Gol as of LTM September 2015 (4) US network carriers direct competitors include: Delta, United, Alaska Airlines and American Airlines Source: Company data, airlines public information

Overlap: Volaris’ resilient ULCC model

55

2 5 %

TRASM CASM CASM CASM CASM CASM CASM CASM CASM CASM CASM

(4) (3)

28.4% 31.2% 30.4% 13.4% 13.4% 11.0% 10.8%

Strong balance sheet and liquidity, well funded for continued growth

(1) Figures converted to USD at December end of the period spot exchange rate $17.2065 for convenience purposes only (2) Gol as of LTM September 2015 Source: Company data, airlines public information

LTM liquidity-cash and equivalents as a % of LTM Op. Revenue

56

• Unrestricted cash of $5.2 billion pesos (US$

300 million(1)) as of December 31st 2015.

• Net cash position of $3.6 billion pesos (US$

207 million(1)) as of December 31st 2015.

• Adjusted long term net debt to EBITDAR of

3.3x as of FY2015.

• Fully financed pre-delivery payments

through 2018 and executed sale- leasebacks for 2016 deliveries.

• Expected 2016 net CAPEX neutral (US$ 0

to -10 million):

• PDPs: from US$ -50 to -45 million,

net of PDP reimbursements (8 aircraft

• rder book deliveries)
• Major maintenance: US$ 25 to 35

million

• Other: from US$ 10 to 15 million

Focused on return on invested capital

57

LTM adjusted pre-tax ROIC (1)

Committed to continue increasing shareholder value

11% 14% 17% 19% 21% 22% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

(1) Adjusted to rents

Enrique Beltranena CEO

Avenues of future growth

Reduce unit costs Fleet growth Expand network Increase total revenues

• Deepen footprint in

markets with high demand stimulation

• Grow ancillary revenue to

world class ULCC benchmarks

• Backlog 59 additional

aircraft to be delivered

• Up-gauge fleet from

A319 to A320/A321

• Higher seat density

configuration

• Expand network

geographically, additional frequencies

• Fuel efficient

NEO engine incorporation

• Price, product,

presence

59

• Lower distribution

cost though digital innovation

Thank you

Fuel hedging position

61 61

Period Total % hedged(1)

• Avg. price (gal/USD$)

Instrument

1Q16 55% $1.94 Call 2Q16 60% $1.95 Call 3Q16 60% $1.99 Call 4Q16 60% $1.99 Call 1Q17 50% $1.64 Call 2Q17 50% $1.61 Call 3Q17 50% $1.44 Call 4Q17 50% $1.40 Call 1Q18 15% $1.47 Call

(1) Approximate percentage of gallons hedged

(1) Full year 2015 and 4Q 2015 figures converted to USD at December end of the period spot exchange rate $17.2065, respectively, for convenience purposes only (2) Audited financial information 2013A – 2015A (3) Includes debt prepayment of Ps.65 million Source: Company data

Consolidated statements of operations summary

MXN millions unless otherwise stated (2) 2013A 2014A 2015A 2015A (1) 4Q 2015 4Q 2015(1) % of total

• perating

revenues (USD millions) (USD millions) Passenger 11,117 11,303 14,130 821 3,930 228 77.2 Non-ticket 1,885 2,733 4,049 235 1,163 68 22.8 Total operating revenues 13,002 14,037 18,180 1,057 5,092 296 100 Fuel 5,086 5,364 4,721 274 1,158 67 22.7 Aircraft and engines rent expense 2,187 2,535 3,525 205 1,043 61 20.5 Landing, take off and navigation expenses 1,924 2,066 2,595 151 712 41 14.0 Salaries and benefits 1,563 1,577 1,903 111 539 31 10.6 Sales, marketing and distribution expenses 704 817 1,089 63 339 20 6.6 Maintenance expenses 572 665 875 51 288 17 5.6 Other operating expense, net 347 468 505 29 171 10 3.4 Depreciation and amortization 302 343 457 27 108 6 2.1 Total operating expenses 12,685 13,833 15,669 911 4,357 253 85.6

EBIT 317 204 2,510 146 736 43 14.4 Operating margin (%) 2.4 1.5 13.8 13.8 14.4 14.4 Finance income 25 23 47 3 10 1 0.2 Finance cost (126) (32) (22) (1) (7) (0.1) Exchange gain, net 66 449 967 56 178 10 3.5 Income tax expense (18) (39) (1,038) (60) (263) (15) (5.2) Net income 265 (3) 605 2,464 143 654 38 12.8 Net margin (%) 2.0 4.3 13.6 13.6 12.8 12.8 Adjusted EBITDAR 2,806 3,081 6,492 377 1,886 110 37.0

• Adj. EBITDAR margin (%)

21.6 22.0 35.7 35.7 37.0 37.0 EPS Basic and Diluted (Pesos) 0.31 0.60 2.43 0.14 0.65 0.04 EPADS Basic and Diluted (Pesos) 3.10 6.00 24.35 1.42 6.46 0.38

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Consolidated statements of financial position summary

(1) Full year 2015 figures converted to USD at December end of the period spot exchange rate $17.2065 for convenience purposes only (2) Net debt = financial debt - cash and cash equivalents (3) Adjusted debt = (LTM aircraft rent expense x 7) + financial debt (4) Adjusted net debt = adjusted debt - cash and cash equivalents (5) Audited financial information 2013A – 2015A Source: Company data

MXN millions unless otherwise stated (5) 2013A 2014A 2015A 2015A (1) (USD millions) Cash and cash equivalents 2,451 2,265 5,157 300 Current guarantee deposits 499 545 861 50 Other current assets 1,050 879 1,223 71 Total current assets 4,000 3,689 7,241 421 Rotable spare parts, furniture and equipment, net 1,341 2,223 2,550 148 Non-current guarantee deposits 2,603 3,541 4,704 273 Other non-current assets 434 452 765 44 Total assets 8,378 9,905 15,261 887 Unearned transportation revenue 1,393 1,421 1,957 114 Short-term financial debt 268 823 1,371 80 Other short-term liabilities 2,211 2,524 3,774 219 Total short-term liabilities 3,872 4,768 7,103 413 Long-term financial debt 294 425 220 13 Other long-term liabilities 250 242 1,113 65 Total liabilities 4,415 5,435 8,436 490 Total equity 3,962 4,470 6,825 397 Total liabilities and equity 8,378 9,905 15,261 877 Net debt (2) (1,888) (1,017) (3,566) (207) Adjusted debt (3) 15,874 18,990 26,268 1,527 Adjusted net debt (4) 13,423 16,725 21,111 1,227 63

Consolidated statements of cash flows summary

(1) Full year 2015 figures converted to USD at December end of the period spot exchange rate $17.2065 for convenience purposes only (2) Audited financial information 2013A - 2015A. (3) Includes debt prepayment premium Source: Company data

MXN millions unless otherwise stated (2) 2013A 2014A 2015A 2015A (1) (USD millions) Cash flow from operating activities Income before income tax 283 644 3,502 204 Depreciation and amortization 302 343 457 27 Guarantee deposits (620) (695) (1,165) (68) Unearned transportation revenue 135 27 536 31 Changes in working capital and provisions (61) 14 (261) (15) Net cash flows provided by operating activities 39 334 3,070 178 Cash flow from investing activities Acquisitions of rotable spare parts, furniture, equipment and intangible assets (1,161) (1,603) (1,456) (85) Pre-delivery payments reimbursements 698 396 670 39 Proceeds from disposals of rotable spare parts, furniture and equipment 151 22 185 11 Net cash flows used in investing activities (312) (1,185) (601) (35) Cash flow from financing activities Payments of Treasury Shares

• (7)
• Net proceeds from initial public offering

2,578

• Transaction costs on issue of shares

(38)

• Proceeds from exercised treasury shares

26

• 23

1 Interest paid (65) (23) (42) (2) Other finance costs

• (11)

(40) (2) Payments of financial debt (1,084) (3) (400) (801) (47) Proceeds from financial debt 444 966 925 54 Net cash flows provided by financing activities 1,861 525 65 4 Increase (decrease) in cash and cash equivalents 1,587 (326) 2,533 147 Net foreign exchange differences 41 141 359 21 Cash and cash equivalents at beginning of period 822 2,451 2,265 132 Cash and cash equivalents at end of period 2,451 2,265 5,157 300 64

• Adj. EBITDA and Adj. EBITDAR reconciliation

(1) Full year 2015 figures converted to USD at December end of the period spot exchange rate $17.2065 for convenience purposes only (2) Audited financial information 2013A - 2015A Source: Company data

MXN millions unless otherwise stated (2) 2013A 2014A 2015A 2015A (1) 4Q 2015 4Q 2015 (1) (USD millions) (USD millions) Net income 265 605 2,464 143 654 38 Plus (minus): Finance costs 126 32 22 1 7

• Finance income

(25) (23) (47) (3) (10) (1) (Benefit)/provision for income taxes 18 39 1,038 60 263 15 Depreciation and amortization 302 343 457 27 108 6 EBITDA 685 995 3,934 229 1,021 59 Exchange (gain) loss, net (66) (449) (967) (56) (178) (10) Adjusted EBITDA 619 547 2,967 172 844 49 Aircraft and engine rent expense 2,187 2,535 3,525 205 1,043 61 Adjusted EBITDAR 2,806 3,081 6,492 377 1,886 110

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