SAS, the Scandinavian airline, will cut 500 more jobs and ground seven aircraft after high fuel prices and slowing demand pushed it into a loss for the third consecutive quarter.

The carrier reported a second-quarter loss of SKr411m ($65m) compared with a profit of SKr584m a year earlier. Revenues rose 8.7 per cent to SKr17.7bn, while passenger numbers rose 5.2 per cent to 11.6m.