UBS raised its target price for Air China to HK$4.50 from HK$4 due to expected growth in both passenger and cargo demand, though it maintained its "sell" call on the carrier.

"Passenger and cargo demand should be supportive for yields," UBS said in a note to investors.

On Feb. 4, Hong Kong-listed Air China closed up HK$1.01, or 14.05 pct, at HK$8.2.