Airlines Welcome the End of Sweden’s Aviation Climate Tax

Sweden’s government has abolished its air travel tax, rolling back a six-year-old levy that charged airlines up to $54 per passenger per flight, depending on the distance.

At the time of its introduction, the Swedish government said the purpose of the tax was to help reduce the climate impact of aviation. 

Since the policy came into effect in 2018, domestic air traffic fell by nearly a third, according to a report by aviation data firm Cirium. In the report, Cirium suggests that some of the decline was a result of growing concern amongst consumers of the environmental impacts of flying. 

While several small regional airports, including Bromma near Stockholm, shut down as demand fell, there had been a gradual rise in rail use in the country over the past few years. 

Airlines Ready to Expand Again

The reversal is already changing airline strategies. Ryanair had scaled back its Swedish domestic flights last year, citing low profitability. Now the airline plans a comeback.

“As Europe’s No. 1 airline, Ryanair is thrilled to announce significant growth and expansion in Sweden, following the Swedish Govt’s forward-thinking decision to abolish the harmful aviation tax, which has been holding back Sweden’s post-Covid recovery and stifling traffic, jobs, and economic growth,” Ryanair CEO Eddie Wilson previously said in a statement.

Ryanair’s enthusiasm for Sweden contrasts with its decision to pull routes from Denmark, where a new aviation tax is being introduced. 

EasyJet told Skift it also welcomed the change. “We strongly welcome the abolition of taxes on passengers to help keep flying affordable,” a spokesperson said. 

Anko van der Werff, CEO of SAS, had previously urged the government to scrap the tax, calling it a barrier to competitiveness. “This will help us reduce emissions and strengthen Sweden’s global position,” he wrote on LinkedIn.

In an email to Skift, the International Air Transport Association, a trade body representing most major airlines, said it also praised the move.

“Today marks a significant step forward for Sweden’s aviation industry as the aviation tax is abolished. This decision is a bold and positive move which will bring great benefits in a number of ways,” IATA’s Area Manager for the Nordic and Baltic regions, Catrin Mattsson, said.

“The previous aviation tax did nothing to support the transition to reducing emissions. With the tax abolished, instead of funds leaving the industry, they can be used for investments in Sustainable Aviation Fuel, new technologies, and innovations needed for the transition.”

Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.