HONG KONG, April 3 (Reuters) - Dominant Hong Kong carrier Cathay Pacific Airways (0293) said on Wednesday it will reinstate some flights to the U.S., Canada and Indonesia this summer amid signs that regional and international travel is slowly recovering. Like many other carriers, Asia's fourth largest airline by capacity cut flights late last year following the sharp slump in business and leisure travel after the September 11 attacks in the United States. Starting in June, Cathay said it will increase the frequency of flights to Los Angeles to 10 a week from seven. >From July, it will increase the number of flights to Vancouver to 14 from 11 and use planes with larger capacity on San Francisco flights. Cathay also will resume two flights a week to Jakarta from July. "Cathay Pacific reinstating previously suspended flights is a measured response to some signs of recovery in those markets," corporate planning director Augustus Tang said in a statement posted on the airline's website. But Cathay also said it maintains a cautious outlook about a broader recovery, and will keep some passenger and cargo aircraft in mothballs for the time being. The airline said in mid-March that passenger and cargo numbers improved in the first two months of 2002 versus the same period last year. But it said average fares fell due to sharp discounting and weak demand for first and business class travel. Cathay's shares were down 3.91 percent at HK$11.05 in early trade on Wednesday. The stock has risen about 20 percent in the past three months versus a drop of more than three percent for the blue-chip Hang Seng Index (HSI), of which it is a component. The airline is 25.5 percent owned by CITIC Pacific Ltd (0267) and about 45 percent owned by Swire Pacific Ltd (0019). ©2002 Reuters Limited.