UPDATE 1-Finnair matches weak Oct demand with capacity cuts

* Oct passenger load factor +0.5 pct-pts y/y

* Scheduled traffic falls nearly 11 pct y/y

* Capacity cut by 12 pct

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HELSINKI, Nov 9 (Reuters) - National Finnish carrier Finnair Oyj (FIA1S.HE) slashed capacity in October at a slightly faster rate than the fall of its passenger traffic, the firm said on Monday, adding the coming months would remain tough.

The group said its passenger load factor in October, a measure of capacity use, rose 0.5 percentage points versus a year ago.

"Capacity was optimally cut to match falling demand. Winter is expected to continue to be difficult, so further adjustments to traffic will be made," the airline said in a statement.

"For leisure traffic in particular, the coming winter season will be tough. The decline in cargo traffic, however, currently appears to be over," it said.

State-controlled Finnair, like other airlines, has been battered as the economic slowdown throttles demand. It expects to report a loss in 2009. (Editing by David Holmes)