Vietnam Airlines said on Monday its revenues this year would jump an estimated 48 percent to 17.39 trillion dong (USD$1.1 billion) thanks to a rise in tourist arrivals and cargo transport.

State media on Monday said Vietnam welcomed 2.9 million foreign visitors this year, a rise of 19 percent.

Vietnam's national carrier was targeting a 9.3 percent rise in revenues in 2005 to 19 trillion dong (USD$1.21 billion), the unlisted airline said in a statement.

It said it 2004 pre-tax profit would jump 40 percent, despite higher oil prices increasing its costs by 640 billion dong. It had forecast an annual pre-tax loss of more than USD$2 million in August due to higher fuel costs.

The airline posted a pre-tax profit of 424.4 billion dong for 2003 on revenues of 11.74 trillion dong, state-run media said in January.

It said it planned to start direct flights this year to Frankfurt and Nagoya, Japan.

The airline said it would expand its fleet to 49 aircraft by the end of 2005 and 75 planes by 2010. Next year it would lease two Boeing 777 jets and take delivery of a fifth Airbus A321 under a contract signed in October 2002.

This month, Vietnam Airlines signed a contract to buy 10 additional Airbus A321 narrow-body jets, with the first to be delivered in 2006.

The statement said Vietnam Airlines carried 2.29 million foreign passengers and 2.75 million domestic passengers this year, the first time the combined figure topped 5 million. Its seat occupancy rate stood at 65.37 percent.

Cargo transport in 2004 was estimated at 88,589 tonnes, up 14 percent.

Vietnam Airlines said it was targeting 5.72 million passengers and 95,000 tonnes of cargo in 2005.

(Reuters)