The strike by Norwegian Air pilots is to continue today as the airline admits the action is hurting ticket sales.
The walkout, which began seven days ago and follows three months of talks, was called by the Norwegian Pilot Union over concern that working conditions in Norway, Denmark and Sweden will deteriorate in a push to cut costs.
Norwegian said around 35,000 passengers will be affected by today's walkout as almost all domestic flights in Norway, Sweden and Denmark will be cancelled.
The airline said that despite passenger traffic growing 7 per cent in February compared with the previous year the strike had led to a decline in ticket sales for March, "especially on domestic routes in Scandinavia".
“2015 got off to a good start until the pilot strike hit us, which has influenced our traffic figures," said Norwegian CEO Bjørn Kjos.
"The situation is deeply regrettable. Although our traffic is running as normal on our long-haul operation and from our bases outside Scandinavia, the strike still affects the entire company,” he added.
The pilots are striking in order to achieve a collective labour agreement with Norwegian's parent company, instead of its local subsidiaries, and for the same employment terms to be put in place across Norway, Sweden and Denmark. They went on strike after talks broke last Saturday.
Flights between Scandinavia and the UK and USA, and Scandinavia and Thailand will not be affected by the pilot strike.
Norwegian said passengers affected by cancellations can call its customer service centre at +47 21 49 21 49.
The Scandinavian low-cost airline reported its first annual net loss in 2014 in at least eight years, as it attempts to grow its low-cost long-haul services.