Volaris: the Leading Ultra-Low-Cost Airline Serving Mexico, USA and Central America

Volaris: the leading ultra-low-cost airline serving Mexico, USA and Central America

September 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.

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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 Volaris: snapshot at 30,000 feet

Serving 68 destinations throughout Mexico (40), USA (24) and Central America (4)

Jun 17 CAGR 2008 2016 LTM (08-16) Unit cost (CASM ex- 5.5 4.8 4.9 -1.6% fuel; cents, USD)(1) Passenger demand 3.2 14.3 15.3 20.6% (RPMs, bn) Aircraft 21 69 66 16.0% (End of period) Routes 42 162 164 18.4% (End of period) Passengers 3.5 15.0 16.0 20.0% (mm) Operating revenue 4.4 23.5 24.8 23.3% (bn, MXN) Adj. EBITDAR 0.7 8.9 7.5 37.4% (bn. MXN) Adj. ROIC 11% 20% 15% +9 pp. (pre-tax)

(1) Converted to USD at an average annual exchange rate Source: Company data 3 Volaris’ flight path for demand stimulation and continued growth

Capacity increase Cost reduction

More Resilient ULCC ancillaries (“You decide”) business model driving high, profitable growth

“Clean”, low base fares More customers

4 Volaris’ consistent execution of its ULCC business model well positioned for growth

Accomplishments Opportunities

Strong penetration of Mexican air Attractive emerging air travel market in travel market Mexico

Diversified and resilient point-to-point Continue geographic diversification network through international growth

Bus to air substitution Continue route frequency increase

Successful price unbundling Upside in ancillary revenue

Flexible fleet plan and utilization; Proven ancillary revenue model capacity management

Sustained profitability with strong Continue cost reductions balance sheet

5 Accomplishments Volaris has a best-in-class unit cost structure

Long-term unit cost advantage

CASM and CASM ex-fuel (LTM June 2017, USD cents) (1) Cost structure • Economies of scale In line with best-in- - Dilute fixed costs class ULCCs - High seat density 13.3 13.2 13.1 12.5 • Young and fuel efficient fleet 2.9 11.5 2.5 3.5 11.0 - Sharklet rollout 10.3 3.7 9.8 - Average age of 4.4 years 2.5 2.7 8.9 2.2 8.7 - NEO Engines rollout 2.7 7.4 7.6 - Low fuel burn 7.1 2.4 2.4 6.4 6.4 1.8 1.9 5.9 5.9 • Productive network 2.0 1.9 2.4 1.2 10.6 - Point-to-point 10.4 9.8 1.7 8.8 8.9 8.3 8.1 - No connections complexity 7.2 6.5 6.3 5.6 5.7 5.0 4.6 • High aircraft utilization 4.5 4.0 4.2 - 2Q17 average 12.8 block hours per day

Latin American carriers US LCCs WW LCCs US network Continued cost carriers improvement potential

(1) DCOMPS = Direct Competitors: Delta, American Airlines, Alaska Airlines and United | (Average CASM and CASM ex-fuel) (2) As of March 2017 Note: Non-USD data converted to USD using an end of period exchange rate for the period 7 Source: Company data, airlines public information Volaris’ cost structure enables us to lower base fares and increase ancillaries

Volaris’ TRASM is below most competitors’ CASM

TRASM and CASM (LTM June 2017 USD cents)

13.1 13.2 13.3 12.5 11.5 11.0 10.3 9.8

8.7 8.9 7.6 7.2 7.4 6.4 6.4 5.9 5.9

(1) DCOMPS = Direct Competitors: Delta, American Airlines, Alaska Airlines and United | (Average CASM and CASM ex-fuel) Note: Non-USD data converted to USD using an end of period exchange rate for the period 8 Source: Company data, airlines public information Non-ticket revenues continue to grow, with upside potential

Non-ticket revenue per passenger

Volaris (MXN) per passenger Ancillaries

• Apply revenue management techniques 2011-2016 CAGR: + 21,9% - Pricing by route, season, day 407 381 - Fully dynamic pricing for some products 338 279 • Add products 204 211 - New products & services 142 - Enhancements to existing products • Improve presence - More touch-points to sell ancillaries throughout 2011 2012 2013 2014 2015 2016 1H 2017 the journey - Allow customization Best-in class ULCCs, including first bag fee (1) • Benefit from network diversification (Jun 2017 LTM, as % of total operating revenue) (2) - More international capacity 45% 48% 41% • First checked bag - USA and Puerto Rico 25% - Costa Rican AOC

Increasing non-ticket revenue allows to Volaris Allegiant Wizz Spirit Non-ticket reduce fare further and stimulate revenue per $20.43 $54.91 $29.20 $41.94 demand pax (USD)

(1) Mexican legislation does not allow Mexican airlines to charge for the first checked bag on domestic flights (2) Converted to USD using an average exchange rate for the period 9 Source: Company data, airlines public information Network enhancement: connecting the dots and diversifying further

LTM July 2017 Volaris diversified its network by starting operations in 16 routes and 5 stations

Volaris’ LTM July 2017 new routes

New routes Domestic International Guadalajara 3 2 Mexico City - 4 Costa Rica - 3 Other - 4 Total 3 13

New stations USA Central America

Austin San Salvador Miami Managua Milwaukee New International New Domestic New Volaris Costa Rica 10 Note: Excludes routes and stations announced to start operations …supporting strong capacity growth

1H 2017 capacity growth contribution (yoy)

+ Additional frequencies 10.3%

+ Joining existing airports 1.7%

+ New airports 3.4%

+ Volaris Costa Rica 1.0%

= Total ASM growth 16.4%

Our network is well positioned for diversified growth

11 Source: Company data Growth opportunities In recent years, Mexico’s volume growth has been robust despite challenging economic environment

Mexico passenger market volume has increased since 2011

Passenger volume (millions)

Main industry 2011 - 2016 CAGR: +8.6% 87 growth drivers 82 75 14 • Strong demand and 66 13 61 12 increasing middle 57 11 class 52 10 29 9 27 8 26 • LCC gaining market 21 23 through low fares 19 19 -43.8% LCC (1) 37 42 44 share 25 28 30 33 • High improvement potential: 2011 2012 2013 2014 2015 2016 LTM Jun -Domestic air 2017 Domestic USA Other international trips per capita in Mexico 0.42 Yoy growth 4.0% 8.3% 8.3% 8.3% 12.3% 10.4% 10.6%(3) vs. Brazil 0.49 GDP growth (2) 4.0% 4.0% 1.4% 2.3% 2.6% 2.3% 3.1% GDP multiplier 1.0 2.1 6.1 3.7 4.7 4.5 3.4 3.6x GDP multiplier (1) Considers Volaris and VivaAerobus domestic market share 1H 2017 (2) Values according to INEGI´s new methodology in recent years (3) Yoy growth for LTM June 2016 vs. LTM June 2017 13 Source: DGAC-SCT; INEGI; Banco de México Volaris growth has surpassed market growth in both domestic and international markets

Domestic passenger growth (%)

25.2% 24.8% 23.0% 19.7%

13.0% 12.8% 12.0% 10.3% 11.5% 8.6% 7.9% 7.7%

2012 2013 2014 2015 2016 LTM June 2017 Market Volaris

International passenger growth (%)

33.3% 26.9% 23.4% 21.8% 19.6% 14.6% 11.6% 10.3% 8.8% 6.5% 8.1% 8.0%

2012 2013 2014 2015 2016 LTM June 2017 Market Volaris 14 Source: DGAC, Company data Volaris has been the engine of growth for VFR and leisure markets in Mexico

Segment passenger CAGR Volaris vs. market (2010-2016) Volaris’ main growth drivers

Tijuana • Low costs allow Volaris to offer lower fares and make flying 10% 12% Hermosillo possible Market Volaris • Fleet growth growth 5% 17% - Up-gauging: A320neo with 186 seats and A321 with 230 seats Monterrey Los Cabos - Young and fuel efficient: Culiacan (1) 9% 38% average of 4.4 years; new 10% 28% generation aircraft 8% 23% Guadalajara Cancun • Productive network with high Vallarta utilization 13% 27% 8% 19% - Around 20 new routes per 11% 34% Mexico City year - Avg. 12.4 block hours/day in 11% 61% 1Q 2017 • High and healthy load factors - 83.2% in 1Q 2017 • 28% domestic passengers market share as of Mar. 2017 2016, Volaris was the source of 46% of the growth among Mexican carriers

(1) Data as of June 2017 15 Note: Markets not mutually exclusive, contested domestic markets Source. Company data, airlines public information Significant untapped opportunities

Domestic – growth potential of approx. 110 International – growth potential of approx. 130 routes (4) routes (4) Number of routes (1) Number of routes (2)

50 100 40 75 30 50 20

10 25

0 0 USA (VFR) USA (Leisure) CAM, SAM, Canada, Routes served Growth potential Caribbean

In terms of air trips per capita Mexico has plenty potential to grow 2016 air trips per capita (domestic and international) (5)

2.55

0.91 0.66 0.45 0.47 0.42 0.34 0.31 0.05

USA Chile Colombia Brazil Peru Mexico Argentina Costa Rica Paraguay

(1) Minimum stage length of 170 miles (2) Minimum stage length of 200 miles; CAM stands for Central America; SAM stands for South America (3) South and northbound leisure routes (4) Figures calculated as of June 2017 16 (5) Data from the World Bank Source: Company data, DGAC and DIIO MI Market Intelligence for the Aviation Industry; ALTA Volaris contributed by stimulating demand from bus to air substitution

Significant upside for air travel Bus switching program

Total bus passengers in Total air travel passengers Mexico (mm) in Mexico (mm) Education

Mass media campaigns “Tarifa no + camion” positioning 2,971 Digital capabilities 2,758 Trial

2,683 2,891 Ticket giveaway #Nomáscamión

First sell 82 55 40 Strong conversion rate 74 80 29 33 28 42 2012 2016 2012 2016 ULCC model

First, economy and other Domestic Attracting 1st Executive and luxury International time flyers 17 Source: Company data, Secretaría de Comunicaciones y Transportes (SCT), 2016 Volaris’ Costa Rican AOC provides growth potential in Central America

Central America key insights Potential markets (1)

New York Chicago • The right market - Costa Rica is top three middle class growth Los Angeles of LATAM

- Costa Rica GDP growth of 4.2% in 2016 Dallas - Population of ~45M in Central America San Antonio Houston Orlando - VFR potential in the region and to the USA, Miami Costa Rica is the country with the most La Habana immigrants as a % of its population Guadalajara Cancun Puerto Rico Mexico City Santo Domingo - Bus switching potential Guatemala • The right moment San Salvador - No ULCC presence in the region Managua Cartagena San José, CR - Local competitors have 38% of capacity Medellin share while US carriers 46% Bogota - High average fare and yield environment Quito • The right ULCC model Guayaquil - Growth sustainable and proved model, easily translatable to Central America - Ancillary revenue potential - USD denominated revenue contributing to Lima FX natural hedge La Paz

Volaris’ Central American operation full potential of 18-22 aircraft

(1) Subject to authorization from the corresponding authorities 18 Source: World Bank, ALTA, MI-DIIO, CEPAL, Infare Drivers of continued profitable growth

Uniquely positioned to capture growth in underpenetrated Mexican aviation market

• Grow ancillary revenue • Up-gauge fleet from to world class ULCC A319 to A320/A321 benchmarks • Neo incorporation • Price, product, Increase - Fuel efficiency presence Reduce total unit costs revenues

Expand Fleet • 44 additional aircraft • Expand network network growth geographically to be delivered • Deepen footprint in • Higher seat density markets with high configuration demand stimulation

19 Source: Company data Fleet and financials Volaris’ fleet plan supports its strategy to drive lower unit costs

Contractual fleet obligations (number of aircraft)(1) 1 0 73 75 1 69 5 • A321 (CEO and NEO) 10 10 10 - 230 seats (up-gauge) 7 - ~10% CASM dilution(2) 11

28 • A320 NEO 28 28 - Combined fuel consumption reduction by approx. 15-16% per seat(2) 15 15 15 • A320 CEO with sharklets 15 12 6 - Fuel consumption reduction by approx. 3%(2) 2016 2017E 2018E A319 A320 • All PDP requirements fully A320 w/sharklets A320 NEO w/sharklets financed A321 w/sharklets A321 NEO w/sharklets

Backlog of 44 Aircraft to support growth (3)

Note: NEO stands for the Airbus new engine option; CEO stands for the Airbus current engine option (1) Net fleet after additions and returns 21 (2) Source: Airbus (3) Figure calculated as of July 28, 2017 High growth and solid financial performance

Revenues Adj. EBITDAR

24.8 25 2011 – 2016 CAGR: +21.5% 23.5 12 2011 – 2016 CAGR: +48.3% 8.9 18.2 9 7.5

6.5 bn) ) 14.0 15 13.0 6

bn 11.7 3.1 2.5 2.8 8.9 (MXN 3

1.2 (MXN 5 0 2011 2012 2013 2014 2015 2016 LTM 2011 2012 2013 2014 2015 2016 LTM Jun Jun 2017 2017

Revenue CAGR 2011 - 2016 LTM June 2017 Adj. EBITDAR margin

22% 30% 20% 28% 27% 25% 17% 24% 21% 20% 19% 11% 10% 9%

4% 2%

Volaris Azul Interjet Latam Gol Aeromexico Copa Avianca Volaris Azul Copa Aeromexico Latam Avianca Gol Interjet

22 Source: Company data, airlines public information Volaris’ international expansion has been key in constructing a better hedge for FX volatility

Increasing international operation brings higher USD revenues

Volaris’ revenues breakdown, MXN billion (International revenues priced in USD)

11.7 13.0 14.0 18.2 23.5 11.6

24% 26% 27% 31% 33% 32%

76% 74% 73% 69% 67% 68%

2012 2013 2014 2015 2016 1H 2017

Domestic International

23 Strong balance sheet and liquidity, well funded for continued growth

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

• Unrestricted cash of $6.0 billion pesos 24% (US$ 309 million) as of June 30, 2017.

• Net cash position of $3.9 billion pesos 15% (US$ 219 million) as of June 30, 2017. 12% 10% 9% 7% 7% • Adjusted net debt to EBITDAR of 5.2x as 5% of June 30, 2017.

Volaris Aeromexico Latam Copa Gol Avianca Azul Interjet • Fully financed pre-delivery payments. (1)

• Expected 2017 net CAPEX (US$ 120 to - Adj. net debt/EBITDAR 140 million): 8.9x • PDPs: from US$ 60 to 65 million, net of PDP reimbursements 5.5x 5.6x 5.7x • Major maintenance: US$ 50 to 60 5.1x 5.2x 5.3x million

• Other: from US$ 10 to 15 million 2.8x

Copa Aeromexico Volaris Azul Latam Gol Avianca Interjet

24 Non-USD data converted to USD using an end of period exchange rate for the period Source: Company data, airlines public information Appendix Fuel price protection

Period Total % hedged(1) Avg. price (gal/USD$) Instrument

3Q17 59% $1.44 Call

4Q17 57% $1.40 Call

1Q18 50% $1.63 Call

2Q18 50% $1.74 Call

3Q18 45% $1.78 Call

4Q18 35% $1.85 Call

26 (1) Approximate percentage of gallons hedged as of June 30, 2017 Consolidated statements of operations summary

% of total operating MXN millions unless otherwise stated (3) 2014A 2015A 2016A 2016A(1) 2Q 2017 2Q 2017(2) revenues (USD (USD millions) millions) Passenger 11,303 14,130 17,790 861 4,252 238 71.1 Non-ticket 2,733 4,049 5,722 277 1,730 97 28.9 Total operating revenues 14,037 18,180 23,512 1,138 5,982 334 100 Other operating income (22) (193) (497) (24) (10) (1) (0.2) Fuel 5,364 4,721 5,741 278 1,694 95 28.3 Aircraft and engine rent expenses 2,535 3,525 5,590 271 1,378 77 23.0 Landing, take off and navigation expenses 2,066 2,595 3,272 158 1,006 56 16.8 Salaries and benefits 1,577 1,903 2,420 117 717 40 12.0 Sales, marketing and distribution expenses 817 1,089 1,413 68 387 22 6.5 Maintenance expenses 665 875 1,344 65 362 20 6.1 Other operating expenses 490 698 952 46 271 15 4.5 Depreciation and amortization 343 457 537 26 139 8 2.3 Total operating expenses 13,833 15,669 20,773 1,005 5,943 332 99.3

6 EBIT 204 2,510 2,740 133 39 2 0.7 Operating margin (%) 1.5 13.8 11.7 11.7 0.6 0.6 Finance income 23 47 103 5 21 1 0.4 Finance cost (32) (22) (35) (2) (22) (1) (0.4) Exchange gain (loss), net 449 967 2,170 105 (558) (31) (9.3) Income tax (expense) benefit (39) (1,038) (1,457) (71) - - - Net income (loss) 605 2,464 3,519 170 (520) (29) (9.3) Net margin (%) 4.3 13.6 15.0 15.0 8.7 8.7 Adjusted EBITDAR 3,081 6,492 8,866 429 1,556 87 26.0 Adj. EBITDAR margin (%) 22.0 35.7 37.7 37.7 26.0 26.0 EPS Basic and Diluted (Pesos) 0.60 2.43 3.48 0.17 (0.51) (0.03) EPADS Basic and Diluted (Pesos) 5.98 24.35 34.78 1.68 (5.14) (0.29)

(1) Full year 2016 figures converted to USD at December end of the period spot exchange rate $20.6640 for convenience purposes only (2) 2Q 2017 figures converted to USD at June end of the period spot exchange rate $17.8973 for convenience purposes only 27 (3) Audited financial information 2014A – 2016A Source: Company data Consolidated statements of financial position summary MXN millions unless otherwise stated (5) 2014A 2015A(6) 2016A 2016A(1) 2Q 2017 2Q 2017(7) (USD (USD millions) millions) Cash and cash equivalents 2,265 5,157 7,071 342 5,981 334 Current guarantee deposits 545 873 1,167 56 1,097 61 Other current assets 879 1,193 3,313 160 2,826 158 Total current assets 3,689 7,224 11,551 559 9,904 553 Rotable spare parts, furniture and 2,223 2,550 2,525 122 3,117 174 equipment, net Non-current guarantee deposits 3,541 4,693 6,560 317 5,891 329 Other non-current assets 452 765 1,146 55 939 52 Total assets 9,905 15,232 21,782 1,054 19,851 1,109 Unearned transportation revenue 1,421 1,957 2,154 104 3,296 184 Short-term financial debt 823 1,371 1,051 51 1,281 72 Other short-term liabilities 2,524 3,745 4,683 227 4,414 247 Total short-term liabilities 4,768 7,073 7,888 382 8,991 502 Long-term financial debt 425 220 943 46 784 44 Other long-term liabilities 242 1,113 2,157 104 1,479 83 Total liabilities 5,435 8,407 10,988 532 11,253 629 Total equity 4,470 6,825 10,794 522 8,598 480 Total liabilities and equity 9,905 15,232 21,782 1,054 19,851 1,109 Net debt (2) (1,017) (3,566) (5,077) (246) (3,916) (219) Adjusted debt (3) 18,990 26,268 41,125 1,990 45,146 2,522 Adjusted net debt (4) 16,725 21,111 34,053 1,648 39,165 2,188

(1) Full year 2016 figures converted to USD at December end of the period spot exchange rate $20.6640 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 2014A – 2016A (6) Certain amounts related to prepaid income tax and guarantee deposits, presented in the consolidated statement of financial position have been reclassified in 2015A, in order to be comparative with the classification between current and non-current assets presented during 2016A 28 (7) 2Q 2017 figures converted to USD at June end of the period spot exchange rate $17.8973 respectively, for convenience purposes only Source: Company data Consolidated statements of cash flows summary

MXN millions unless otherwise stated (3) 2014A 2015A 2016A 2016A(1) 2Q 2017 2Q 2017(2) (USD (USD millions) millions) Cash flow from operating activities Income (loss) before income tax 644 3,502 4,977 241 (520) (29) Depreciation and amortization 343 457 537 26 139 8 Guarantee deposits (695) (1,165) (1,957) (95) 210 12 Unearned transportation revenue 27 536 196 10 309 17 Changes in working capital and provisions 14 (261) (2,773) (134) (353) (20) Net cash flows (used in) provided by operating activities 334 3,070 979 47 (215) (12) Cash flow from investing activities Acquisitions of rotable spare parts, furniture, equipment and intangible assets (1,603) (1,456) (2,259) (109) (502) (28) Pre-delivery payments reimbursements 396 670 1,733 84 - - Proceeds from disposals of rotable spare parts, furniture and equipment 22 185 498 24 - - Net cash flows (used in) provided by investing activities (1,185) (601) (28) (1) (502) (28) Cash flow from financing activities Treasury shares purchase (7) - (17) (1) - - Proceeds from exercised stock options - 23 20 1 - - Interest paid (23) (42) (39) (2) (24) (1) Other finance costs (11) (40) (138) (7) - - Payments of financial debt (400) (801) (1,531) (74) (206) (12) Proceeds from financial debt 966 925 1,716 83 321 18 Net cash flows provided by financing activities 525 65 11 1 91 5

(Decrease) increase in cash and cash equivalents (326) 2,533 962 47 (625) (35) Net foreign exchange differences 141 359 952 46 (232) (13) Cash and cash equivalents at beginning of period 2,451 2,265 5,157 250 6,839 382 Cash and cash equivalents at end of period 2,265 5,157 7,071 342 5,981 334

MXN millions unless otherwise stated (3) 2014A 2015A 2016A 2016A(1) 2Q 2017 2Q 2017(2) (USD (USD millions) millions) Net income (loss) 605 2,464 3,519 170 (520) (29)

Plus (minus): Finance costs 32 22 35 2 22 1 Finance income (23) (47) (103) (5) (21) (1) (Benefit)/provision for income taxes 39 1,038 1,457 71 - - Depreciation and amortization 343 457 537 26 139 8 EBITDA 995 3,934 5,446 264 (380) (21)

Exchange (gain) loss, net (449) (967) (2,170) (105) 558 31 Adjusted EBITDA 547 2,967 3,276 159 178 10

Aircraft and engine rent expense 2,535 3,525 5,590 271 1,378 77 Adjusted EBITDAR 3,081 6,492 8,866 429 1,556 87