Hong Kong (CNN Business) Shares of Cathay Pacific opened down 1.6% in Hong Kong on Wednesday after the city's flagship airline recorded yet another dismal month and said it would reduce capacity next year. But the stock reversed direction in mid-morning trade and was last up 0.2%.

overcome months of protests in the Asian financial hub, which have The company is still trying toovercome months of protests in the Asian financial hub, which have deterred tourists and weighed heavily on the airline industry and other sectors.

Cathay CPCAY passenger demand dropped. said Tuesday afternoon that its inbound traffic to Hong Kong plunged 46% in November compared to a year ago. The airline and its Cathay Dragon subsidiary, which handles regional flights, also carried 9% less passengers last month than they did a year prior. That was the fourth straight month thatpassenger demand dropped.

"November continued to be very challenging for both Cathay Pacific and Hong Kong, with sentiment for travel still weak," wrote Ronald Lam, chief customer and commercial officer for Cathay Pacific, in a filing with the Hong Kong Stock Exchange.

The company also decided to cut seat capacity next year by 1.4%, reversing an original plan to increase capacity by 3.1%. Lam said that's the "first time in a long while" that Cathay will reduce its size.

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