Norwegian Air traffic up, yield down in May

OSLO, June 6 (Reuters) - Budget airline Norwegian Air Shuttle (NWC.OL) reported on Friday a rise in May traffic volume but a drop in the yield, an indicator of average fares.

Norwegian carried 612,381 passengers in May, an increase of 9 percent from a year earlier. Its yield, or the average revenue per passenger carried and kilometre flown, fell 10 percent to 0.60 Norwegian crown ($0.116).

Total passenger traffic (RPK), which factors in distance flown, rose 27 percent, Norwegian Air said.

"Certain routes in the Scandinavian/Nordic region continue to show pressure on yield from increased competition," said the low-cost rival to Scandinavian airline SAS (SAS.ST) (SASNOK.OL).

It repeated that growth in international capacity caused larger seasonal fluctuations than last year.

"The yield development is in part due to changes in the route portfolio mix, which increased the average flying distance of 16 percent," Norwegian said.

International passenger traffic and international capacity both increased 34 percent, producing a passenger load factor -- a measure of how full a flight is -- of 79 percent, unchanged from the same period last year. Domestic passenger traffic increased 9 percent, while domestic capacity rose 6 percent, resulting in a passenger load factor of 79 percent, up 2 points from last May last.

(Reporting by Aasa Christine Stoltz; Editing by Erica Billingham)