FLC Group reports $81 million after-tax loss in 1Q from $345,500 profit

The parent company of Bamboo Airways reported a huge loss despite revenue grew 60% year-on-year to VND4,768 billion in the last three months.

In the first quarter of 2019, the group reported VND2,979 billion in revenue.

The spreading coronavirus outbreak has increased costs and suspended operations of tourism, aviation, resort, and real estate sectors that the corporation is investing into.

FLC returned the negative business result after it reported profit for the first time in the fourth quarter of 2019 since it sold stakes in Bamboo Airways.

In 4Q of last year, FLC Group reported VND5 trillion revenue, up 22.7%. The company recorded a profit of VND368 billion.

End-2019, FLC's ownership in Bamboo Airways unexpectedly dropped to 51.11% (compared to 100% ownership from the third quarter. Information on the buyer has not been disclosed.

Bamboo Airways was established on May 31, 2017 with a charter capital of VND700 billion and FLC Group contributes 100% of the capital.

In an interview with Bloomberg, CEO Dang Tat Thang said that Bamboo Airways' profit before tax in 2019 is estimated at VND303 billion, expected to increase to VND1,000 billion by 2020.

The airline also plans to list 400 million shares on the Ho Chi Minh Stock Exchange in the second quarter of 2020.