Scandinavian airline SAS Group said earning is still under pressure as weak demand adds further challenges.

SAS Group, half-owned by Sweden, Norway and Denmark, said that traffic declined almost 14 percent in July as the airline slashed capacity with 17 percent in a move to adjust supply to lower demand.

The company’s earnings also continue to dive. The yield for June - the most recent month for which data is available - was down by 7.6 percent, putting pressure on the revenues for the second quarter. For July the change in yield is expected to be slightly less negative than June.

“The higher jet fuel prices in combination with the weak demand adds further challenges to the industry and requires actions in order to mitigate the negative earnings' impact”, the company said in the statement on Friday.

“To address the unprecedented challenges, SAS management and Board evaluates further measures to reduce cost and improve the efficiency”.

Still, the summer leisure traffic overall developed well that helped to boost the load factor with 3.6 percentage points to 83.8 percent.

SAS Group will publish its first half result on 12 August.