Ryanair Expands Swedish Operations After Tax Removal
In a significant move following the Swedish Government’s decision to abolish the aviation tax, Ryanair has announced plans to expand its flight operations in Sweden during the summer of 2025. The government’s announcement, made on September 5, 2024, revealed that the aviation tax, which has been in effect since 2018, will be scrapped from July 1, 2025, aiming to boost air travel in the region.
The aviation tax imposed a levy between SEK 76 and SEK 504 (approximately $7 to $49) on each airline ticket for flights arriving or departing from Swedish airports, with transit passengers being exempt. Ryanair responded positively to this development on September 25, 2024, stating that the removal of the tax would reduce travel costs and enhance Sweden’s competitiveness as a destination for airlines.
As part of its expansion strategy, Ryanair plans to increase its fleet in Sweden by adding two Boeing 737 aircraft, which represents a 33% increase in its aircraft based in the country. The airline will introduce ten new routes from various Swedish airports, contributing to the creation of approximately 60 new jobs in the Swedish economy. This expansion is part of Ryanair’s broader strategy to capitalize on the growing demand for air travel in the region.
The addition of the two new aircraft represents a $200 million investment for Ryanair, with one aircraft to be stationed at Stockholm-Arlanda Airport (ARL) and the other at Gothenburg Landvetter Airport (GOT). Ryanair’s CEO, Eddie Wilson, expressed enthusiasm for the airline’s growth in Sweden, stating, “As Europe’s No. 1 airline, Ryanair is thrilled to announce significant growth and expansion in Sweden, following the Swedish Government’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.”
Wilson emphasized that the tax removal would align Sweden’s cost competitiveness with that of its European Union counterparts, enabling Ryanair to deliver record growth and investment in the region. He noted, “Ryanair’s much-needed investment will be in addition to extraordinary growth in traffic to date, with Ryanair traffic in Sweden at 160% of pre-Covid levels.”
However, Wilson also cautioned that the additional growth and investment are contingent upon Swedavia, the Swedish airport operator, not increasing airport charges. He added that Ryanair will increase the number of aircraft based in Arlanda to a total of six, an investment that will lead to 81 total routes to and from Sweden by the summer of 2025.
This expansion reflects Ryanair’s commitment to enhancing connectivity for Swedish citizens and inbound tourists. The removal of the aviation tax is expected to serve as a catalyst for further investment in aircraft, connectivity, tourism, and job creation in the region.
As Ryanair positions itself to meet the growing demand for air travel in Sweden, the airline aims to make air travel more accessible and affordable, reinforcing its status as a leading low-cost carrier in Europe. With the government’s support, Ryanair is set to play a crucial role in revitalizing Sweden’s aviation sector as travel continues to rebound post-pandemic.