COPENHAGEN - Scandinavian Airlines says its flights operated by Swedish pilots are being cancelled because of a strike over a wage increase, meaning nearly 160 flights and some 20,000 passengers are affected Saturday.

The Stockholm-based airline said planes with Danish and Norwegian pilots are not affected.

The Swedish pilots' union demands a 3.5 per cent salary increase while company had offered an overall pay increase of 2.2 per cent, according to the Swedish news agency TT.

SAS vice-president Karin Nyman said in a statement the sides "have unfortunately been unable to come to an agreement." The strike started late Friday.

The airline is partly owned by the governments of Sweden, Denmark and Norway. It's the largest airline in Scandinavia.