Cathay Pacific is only airline to suffer passenger traffic dive

That's between September to November 2012.

According to UOB Kay Hian, Cathay Pacific has the dubious distinction of being the only airline to show a decline in pax traffic during the key Sep-Nov 12 period. The recent share price strength was due to expectation of a recovery in air freight, which we believe is highly premature.

In 2013, CX could continue to decline while facing new competition from startup LCCs in Northeast Asia.

Here's more from UOB Kay Hian:

We have forecast CX to reverse to a net profit of HK$500m in 2013 from a net loss of HK$722m in 2012. Profitability in 2013 is expected to remain weak with EBIT margin of just 0.1%.

The stock remains our top SELL but we have raised our target price to HK$13.40 from HK$12.60, after incorporating changes to our fair value to Air China.