SAS March Traffic Falls 16.7 Percent

Loss-making Scandinavian airline SAS said on Tuesday its passenger traffic fell 16.7 percent in March from a year earlier, adding that it would continue to cut capacity due to weak demand in its core markets.

SAS said its passenger load factor declined 9.9 percentage points year-on-year to 64.5 percent.

March traffic was hit by weaker demand, with intercontinental traffic the most affected by the worst global economic crisis in decades. Traffic along European routes fell following capacity reductions.

The airline, half of which is owned by Sweden, Norway and Denmark, said its yield in February -- the most recent month for which data is available -- rose 2.6 percent.

The airline said its March yield would be positively affected by the Easter holiday which fell in March last year. The Easter effect would also impact capacity reductions and the load factor for March, it said.

SAS said the weaker global economy has hit demand in its core markets. The airline has said it plans to cut capacity by 18 percent during this year and the next, with six planes being taken out of service from April.