Air China is to add nearly 100 new planes to its fleet by 2012 and boost capacity as demand rebounds in China. The country’s flag carrier, which operated a fleet of 262 planes at the end of last year, will take deliveries of 96 planes between now and 2012 as it accelerates capacity expansion and retires aging planes from its fleet, said chairman Kong Dong.

Cargo volumes increased rapidly in the first quarter, contributing significantly to an improved outlook for the company. Cargo traffic measured in revenue-freight tonne kilometres increased by 51 per cent year-on-year to 1 billion.

The Beijing-based carrier is also speeding up expansion in Shanghai, home base of China Eastern. Air China aims to have a 20 per cent share of the air travel market in Shanghai by the end of 2015, up from 10-12 per cent currently.