UPDATE 1-Finnair says June traffic drops 13.4 pct y/y

* June passenger volumes down 13.4 pct y/y

* Passenger load factor +0.6 pct pts

* Av ticket price per kilometre fell over 18 pct y/y in Q2

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HELSINKI, July 7 (Reuters) - Finnish national carrier Finnair Oyj (FIA1S.HE) said demand continued to decline in June, with passenger volumes falling 13.4 percent from a year ago.

"The demand in air traffic is still weakening and Finnair has reduced capacity accordingly," the company said in a statement on Tuesday.

Finnair said it had cut capacity in June by 14.2 percent. Its passenger load factor, a measure of seats sold, rose 0.6 percentage points in the month from a year ago.

Cargo volumes sank 20.7 percent.

The slump in demand reduced the average price per passenger kilometre by more than 18 percent in the second quarter from a year ago, the airline said. (Editing by David Holmes)