"This year, we're putting on more new planes, more routes and more capacity," the official said. Unlisted, state-owned Vietnam Airlines expects to carry 4.9 million passengers in 2004, up from four million last year, he added.
The recent relaxation of visa requirements for tourists from Japan, Singapore, Malaysia, Thailand, Indonesia and the Philippines was seen aiding the airline's recovery from the outbreak of Severe Acute Respiratory Syndrome, a sometimes deadly flu-like virus, which hurt travel to Vietnam last year.
Japanese tourists, who typically are among the biggest spenders, are particularly important. The waiving of visas has put that market which slumped last year "at the beginning of a recovery", the official said.
According to state-run Vietnam News daily on Monday, the airline earned $4.8 billion over the last 10 years.
The airline had forecast revenues of around $719 million for 2003, rising to a record $1 billion by 2005.
It flies 25 international and 16 domestic routes and added a number of new destinations last year including Paris and Frankfurt.
Late last year, Vietnam also signed an aviation pact with America that will permit direct flights between the former war foes for the first time since the end of their conflict in 1975.
At the beginning of this year, the airline scrapped a two-tier ticket price system that charged foreigners more money than locals for their seats.
Its fleet comprises four Boeing 777s, seven Boeing 767s, 10 Airbus 320s and three Airbus 321s as well as ATR 72s and Fokker 70s. Airbus is owned by EADS and Britain's BAE Systems Plc.