MONTREAL - Air Canada, citing an improved Canadian air market, said Thursday it will add two more Ontario cities to its no-frills Tango network.

The airline also announced more capacity for the expected summer demand and travel to Florida for the peak month of March. With the addition of Windsor and London on June 17, Tango will reach 23 Canadian destinations.

The airline said the airline's load factor in January, the proportion of filled seats in each flight, was 74.5 per cent, the highest of any major North American carrier. The figure was also six percentage points higher than Air Canada had in January 2001.

Demand has grown so much that Air Canada's summer schedule within Canada will have five per cent more capacity than the company had the same time last year, said chief executive Robert Milton.

However this probably reflects the absence of Canada 3000, which was the country's second-largest airline until it went bankrupt last November.

Tango, which is not a separate airline but a low-cost brand with its own planes, began service Nov. 1. By summer it will increase to 98 departures per day compared with 36 currently.

Air Canada (TSE:AC) also announced additional seats for the spring to three Florida destinations from Montreal and Toronto, by adding more flights and introducing larger aircraft.

This will make its Canada-Florida seat capacity for the month of March 30 per cent higher than last year.