Chinese domestic air travel is growing strongly again, according to first-quarter traffic statistics for the Big Three Chinese airlines. Even allowing for weak international demand, the companies are enjoying rises in network traffic that foreign competitors could only envy. China Eastern, for all its financial woes, says its first-quarter domestic traffic was up by a spectacular 24.4% on a year earlier.

Cathay Pacific, determined to reduce its rate of cash burn, will cut passenger capacity by 8%, and cargo capacity by 11%, and also will ask its entire work force to take unpaid leave. The service cuts will begin next month. The Hong Kong airline is negotiating to sell five aircraft and will park two more Boeing 747-400BCF freighters, adding to three already grounded, and wet lease a sixth to its subsidiary Air Hong Kong. Another subsidiary, Dragonair, will cut capacity by 13%.

Air China achieved a small profit in the first quarter of this year, thanks to a strong rise in domestic traffic, but has reported a big loss for 2008. Domestic traffic was 18.9% higher in the first quarter than a year earlier, helping the company to a net profit of ¥981 million ($143 million). Operating profit was somewhat less, at ¥256 million. Chinese airlines enjoy strong traffic in their first quarters, because of the lunar New Year holiday, which prompts tens of millions of people to travel.