3 major reasons why Cathay may be heading to turbulence this year

Cost pressures are going up.

According to Maybank Kim Eng, Cathay is facing a challenging 2013 due to: 1) a bloodbath yield environment for the full service carriers (FSC) with declines of 3%-5% seen in 1Q13; 2) a near zombie state cargo markets; and 3) mounting cost pressures from higher staff cost and airport  charges. 

Furthermore, the traditional second tier airlines have upped their game and are a genuine threat to Cathay, Maybank Kim Eng said.