Air China to increase cargo capacity — or not

Air China, the country’s flag carrier,said it will continue to increase capacity in 2009 as it has seen signs of improvement in its domestic cargo business.

China Daily reported, citing Air China’s chairman Kong Dong, reported that the airline would expand its fleet in a constrained manner by taking delivery of 27 aircraft this year and returning eight to 10 leased aircraft.

China Morning Post reported, somewhat in contradiction, that Air China said it will cut one freighter from its fleet this year in response to the economic downturn.

The airline said its cargo revenue had been heavily hit by the global economic downturn, slumping 46% in the first quarter from a year earlier.