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Cathay enjoyed record profits in 2010 when the market rebounded from financial crisis but cargo demand has been falling since April 2011 as demand for Chinese goods slowed amid global financial market turmoil. Cargo load factor was down 9.6 percentage points to 67.8 percent in December.

Analysts said Cathay had taken steps to mitigate the impact of a slowing global economy and weak cargo demand from China. The company had cut 2012 estimated passenger and cargo capacity growth to 7 percent and 10 percent year-on-year, from a previous target of 13 percent and 17 percent, respectively, Daiwa Securities analyst Kelvin Lau said. "The overall industry outlook is relatively bearish and there is no sign of rebound on the cargo side," he added. "Cargo throughput is likely to continue to decline in the first half of 2012 and may rebound in the second half on low comparison basis as the global economy might not deteriorate further," Lau said.

However, its passenger traffic continued to grow last month, to 2.46 million passenger, up 7.9 percent, although passenger load factor eased 0.5 percentage points to 79.6 percent. In 2011, it carried 27.6 million passengers, up 2.9 percent. "The biggest area of concern was the continuing pressure on yield in the economy cabin, particularly on long-haul routes," Cathay's General Manager Revenue Management James Tong said. "We'll be seeing high loads again over the upcoming Chinese New Year peak but yield will remain an area of concern." (Airwise)