Stockholm  - The SAS Group, operator of the joint carrier Scandinavian Airlines, flew more passengers in July than in the corresponding period in 2007, the group said Thursday.

The group said traffic increased by 2.7 per cent, citing that the "market is still characterized by relatively good demand and passenger growth," adding that it was uncertain about the "future macroeconomic development."

The group said it was due to benefit from fuel surcharges that have been introduced to offset soaring fuel bills.

The governments of Norway, Sweden and Denmark together own a 50- per-cent stake in SAS, while private shareholders hold the rest. (dpa)