Volaris adjusts hedging relationships

Volaris, the ultra-low-cost airline serving Mexico, the United States and Central America, has determined that as of June 30, 2020 certain of its non-derivative financial instruments designated as hedging relationships were no longer effective at offsetting the hedged risk. These accounting changes were due lower jet fuel consumption than anticipated, which was directly related to the adverse impact of COVID-19. The impact of this adjustment for the six months ended June 30, 2020 was a benefit of Ps.120 million in the company´s net loss for the period. Further, Ps.53 million were also reclassified from other comprehensive income to operating expenses