SAS has blamed the volcanic ash cloud for a net Q2 loss of €53m (SEK 502m).
The Scandinavian carrier said it lost €74m (SEK 700m) when air space was shut down over Europe earlier this year.
It said that without this loss, it would have made a profit in the three months from April to June.
During the quarter, SAS said operating revenue fell from €1,294m (SEK12,223m) in the same period in 2009 to €1,056m (SEK9,979m) while the number of passengers fell by 8.3% to 6.3m.
It said figures adjusted for the ash cloud gave it a net surplus of €49m (SEK464m).
For the first six months of the year, SAS said it made a net loss of €128m (SEK1,214m), compared with a loss of €190m (SEK1,795m for the same period in 2009.
Mats Jansson, the airline's ceo who announced last week he was leaving in the autumn, said that although aviation was in better shape than a year ago, SAS still faced "major challenges moving forward."
He added: "The ash cloud and the subsequent closure of airspace had a significant impact on net income for the second quarter and greatly affected our customers."
But the airline had recovered "within a few weeks" and its cash flow was now "positive".
Jansson said: "We also noted growth in travel in Economy extra and Business class and a record-high load factor on primarily intercontinental flights.
"This has added to the platform we must establish to attain profitable growth.
"Accordingly, we will now reintroduce one long-haul aircraft that will increase the number of departures to Asia and the US and, in Scandinavia, we will increase the frequency of services between the capital cities already in September."
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