国泰航空(00293) 　　Cathay Pacific’s RPK growth turned negative to -2.9% YoY in Oct-16, vs. +1.9% YoY in Sept-16. The weakness was mainly led by negative trends in China (-5.9% vs. -1.3%), SW Pacific/ S Africa (-4.7% vs. -0.6%), North America (-4.2% vs. +1.0%) and SE Asia/Middle East (-8.5% vs. +0.3%), despite still positive momentum in Europe (5.4%, vs. 9.9%) and North Asia (1.2% vs. -1.6%). YTD, RPK growth has slowed significantly to 1.4% YoY, vs. 8.9% YoY in the same period of 2015. Given 0.2% YoY ASK increase, PLF fell 2.6ppt to 81.5%. YTD, PLF is down 1.3ppt oY at 84.6%. 　　RFTK growth decelerated to 3.2% from 6.3% YoY in Sept-16, but is still above0.6% YoY AFTK growth. As a result, FLF improved 1.7ppt to 68.1%. YTD, RFTK isup marginally by 0.4% YoY, with 0.1ppt dip in FLF to 63.5%.According to management, the fall in passenger traffic in October was partlycaused by Typhoon Haima, which led to the cancellation of more than 200flights. A drop in overall passenger volumes is a worrying trend, as is the fact that booking growth is failing to keep pace with the increase in capacity. A reduction in the number of passengers carried on North American routes was the result of softer demand from the US and other key sales areas. On a brighter note, premium cabins saw revenue and load factor improvement thanks to the Canton Fair in Guangzhou. Meanwhile, yield continues to come under intense pressure due to excess capacity in the market.