Global airline capacity increased last week for the first time since late January, according to the latest data from OAG. The company said there was a 2% increase in capacity with 29.8 million scheduled seats in the past week, 600,000 more than the previous week, with pockets of growth occurring in 8 of the 17 regional markets analyzed. Total capacity is now at 29.9 million seats, about 80 million fewer seats than operated in the same week last year. The growth has been led by China, where a million domestic seats were added. Hong Kong added 40,000 seats. From a smaller base, according to OAG, there are signs of recovery in South America, which showed double-digit capacity growth. One positive note, said John Grant, an analyst with OAG, was that the number of cancellations in the US has dropped to below 4%, a substantial improvement on recent levels.