TORONTO (Reuters) - Air Canada and WestJet reported stronger quarterly operating results yesterday, as Canada's two biggest airlines benefited from more traffic, especially on international flights.

Air Canada, the country's No. 1 airline, posted a quarterly net loss yesterday, hurt by foreign exchange, but its operating results improved as a rebounding economy boosted high-end business travel.

"The recovery in business travel that we are seeing, I think, is pretty typical of a pattern of recovery post-recession," said Chris Murray, an analyst at PI Financial.

Passenger revenue at the Montreal-based carrier rose 12 percent to C$256 million. Almost half of that came from higher revenue from the more lucrative "premium cabin" sector, which saw usage up 31 percent.

Calgary-based WestJet, which focuses more on leisure travel, saw a big jump in profit from a year earlier, but said that with uncertainty lingering in Canada's economy it would focus on building its capacity on nondomestic routes.

"We are seeing continued strengthening in the Canadian domestic market but it's a slow recovery," Gregg Saretsky, WestJet's chief executive, said on a call with analysts. "It hasn't been a fast rebound."

Citing the recent downward revision of Canadian GDP growth estimates, WestJet said it deferred delivery from Boeing of one plane to 2017 from 2011 and two other planes to 2017 from 2012. It will take delivery of six planes in 2011 and five planes in 2012.

Air Canada also plans to look abroad for growth. It has seen its Pacific routes surge, and said it plans on doubling its capacity between Toronto and China this autumn.