UPDATE 1-Delta says August air traffic very strong, yen helps

* Strong yen important contributor for business recovery

* Says still keen on slot-swap deal with U.S. Air (Adds quotes, details)

TOKYO, Sept 2 (Reuters) - Delta Air Lines Inc (DAL.N) has seen very strong traffic on its flights in August, helped in part by a stronger yen that spurred more Japanese to take overseas trips, its company president said on Thursday.

"It has been an important contributor to our recovery from the economic recession we have seen this past year," Delta President Edward Bastian told reporters in Tokyo.

"Certainly, 84 yen to the dollar has helped us improve financial results."

The airline industry contracted in 2008 and 2009 amid volatile fuel prices and a global economic slowdown that sapped travel demand.

In July, Delta's air traffic rose 0.5 percent from a year ago while its capacity fell 0.3 percent. [ID:nN10145488]

Bastian also said Delta is still interested in swapping slots with U.S. Airways at two U.S. airports.

Delta and US Airways (LCC.N) said in July they would bring a lawsuit challenging conditions the U.S. government imposed on a proposal to swap dozens of East Coast airport slots.

The companies said in a regulatory filing they would not proceed with the exchange of assets, which involved government-regulated slots -- or takeoff and landing rights -- at New York's LaGuardia Airport and Washington's Reagan National airport. (Reporting by Mariko Katsumura; Editing by Edwina Gibbs)