Volaris Announces the Substitution of Its External Auditor

Rhea-AI Summary

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) announced the appointment of KPMG as its independent external auditor, effective from the third quarter of 2021, replacing EY, who served for 15 years. The decision aligns with best corporate practices as per the Mexican Code of Corporate Governance Principles. Volaris acknowledges EY's professional service during their tenure and will continue a business relationship for other services. The company's future performance remains uncertain and dependent on multiple factors.

Positive

• Appointment of KPMG as independent external auditor, indicating a strategic corporate governance move.
• Continued relationship with EY for other services reflects stability in external partnerships.

Negative

• None.

MEXICO CITY, July 20, 2021 /PRNewswire/ -- Controladora Vuela Compañía de Aviación, S.A.B. de C.V. ("Volaris" or the "Company") (NYSE: VLRS and BMV: VOLAR), an ultra-low-cost airline serving Mexico, the United States of America and Central America, informs that the Board of Directors of the Company, considering best corporate practices stated in the Mexican "Code of Corporate Governance Principles and Best Practices" and the recommendation of the Audit and Corporate Governance Committee, approved the hiring of KPMG Cárdenas Dosal, S.C. ("KPMG"), as its independent external auditor. Accordingly, KPMG will begin with the review of the Company's financial statements as of the third quarter of 2021, replacing Mancera, S.C. ("EY").

EY had been external auditor of Volaris for fifteen years, providing services in a professional manner, for which the Board of Directors and the Company's management express their appreciation to the firm for the services provided during the aforementioned period.

EY and Volaris will maintain their business relationship for other services than the audit of the Company's financial statements.

Investor Relations Contact

María Elena Rodríguez / Félix Martínez / Investor Relations / ir@volaris.com / +52 55 5261 6444

Media Contact

Gabriela Fernández / gabriela.fernandez@volaris.com / +52 55 3104 5264

The information included in this report has not been audited and it does not provide information on the Company´s future performance. Volaris´ future performance depends on many factors and it cannot be interred that any period´s performance or its comparison year over year will be an indicator of a similar performance in the future.

About Volaris:

Controladora Vuela Compañía de Aviación, S.A.B. de C.V. ("Volaris" or the "Company") is an ultra-low-cost carrier (ULCC), with point-to-point operations, serving Mexico, the United States and Central America. Volaris offers low base fares to build its market, providing quality service and extensive customer choice. Since beginning operations in March 2006, Volaris has increased its routes from five to more than 180 and its fleet from four to 93 aircraft. Volaris offers more than 450 daily flight segments on routes that connect 43 cities in Mexico and 28 cities in the United States with one of the youngest fleets in The Americas. Volaris targets passengers who are visiting friends and relatives, cost-conscious business and leisure travelers in Mexico and in selected destinations in the United States and Central America. Volaris has received the ESR Award for Social Corporate Responsibility for eleven consecutive years. For more information, please visit: www.volaris.com.

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SOURCE Controladora Vuela Compania de Aviacion, S.A.B. de C.V. - Volaris

FAQ

What is the significance of KPMG being appointed as the new auditor for Volaris (VLRS)?

KPMG's appointment as the independent external auditor for Volaris signifies a commitment to enhance corporate governance and transparency in financial reporting.

Why did Volaris replace EY with KPMG as its external auditor?

Volaris replaced EY with KPMG to align with the best corporate governance practices as recommended by their Audit and Corporate Governance Committee.

How long did EY serve as the auditor for Volaris (VLRS)?

EY served as the external auditor for Volaris for a total of 15 years.

When will KPMG start auditing Volaris' financial statements?

KPMG will begin the review of Volaris' financial statements starting from the third quarter of 2021.

What is the impact of the auditor change on Volaris (VLRS)?

The impact of the auditor change on Volaris remains to be seen, but it is expected to improve corporate governance and potentially enhance investor confidence.