Singapore - Jett8 Airlines Cargo, Singapore's first privately-owned cargo carrier, is gearing up to increase its services with two new aircraft, a newspaper reported on Monday.

The expansion comes as soaring fuel prices force other carriers to cut capacity and in some cases, cease operation, The Straits Times said.

Jett8 currently operates two services, one between Singapore and Hong Kong and the other connects Singapore to Dubai, Manchester and Luxembourg.

The service will be increased to five in the first week of July, chief executive Louis Tan told the newspaper.

The airline will continue to fly to Hong Kong, but will cease operations in Dubai, Manchester and Luxembourg at the end of the month, Tan said.

It is seeking to move valuable resources to better-performing markets, including Chennai, Mumbai and Bangalore in India and Pudong in China, the report said.

Jett8 also plans to start flying to Amsterdam and Malmoe, Sweden.

Currently operating two Boeing 747-200 freighters, the airline will soon add a third aircraft, a B747-400, Tan said.

"The 747-400 burns 15 per cent less fuel and has 15 per cent more capacity than the 747-200, so it is more economical, especially for long-haul flying," he was quoted as saying. Another aircraft is due in October.

The Asia-Pacific region accounts for 46 per cent of international global cargo traffic. (dpa)