Swedavia Sees Growth as Sweden Scraps Aviation Tax

Swedish airport operator Swedavia is witnessing an upward trend in international traffic, a positive shift expected to gain further momentum with the elimination of Sweden’s aviation tax set for July 2025. Elizabeth Axtelius, Swedavia’s director of aviation business, shared insights with Aviation Week, revealing that the company’s ten airports have collectively added 25 new routes this summer, with 17 originating from Stockholm Arlanda Airport (ARN) and eight from Göteborg Landvetter Airport.

Axtelius highlighted that this summer, ARN introduced several direct routes to major North American hubs. Airlines such as Air Canada, United Airlines, and Delta Air Lines have operated frequent flights to Toronto, Montreal, and New York, enhancing connectivity between Sweden and North America. Looking ahead to the winter season of 2024-25, All Nippon Airways will establish a direct route to Tokyo Haneda from Stockholm Arlanda, marking another significant addition to the airport’s offerings.

In addition to international growth, there has been an increase in charter flights at airports in Malmö, Luleå, Umeå, and Åre Östersund, further contributing to Swedavia’s expanding network.

Axtelius noted that Swedavia is targeting potential growth in destinations such as Saudi Arabia, India, and Southeast Asia. She remarked, “In a couple of years’ time, traffic into Saudi Arabia would make sense. Sweden is a large market, and we have a substantial Muslim community and significant VFR (visiting friends and relatives) traffic. We’re also exploring the possibility of a major hub in Southeast Asia and expanding routes to India.”

Despite current capacity still lagging behind 2019 levels, Axtelius emphasized Swedavia’s commitment to fostering a favorable environment for airlines. The company is actively enhancing infrastructure and improving airport services to align with future travel trends.

In September 2023, Swedavia initiated the first phase of transforming Terminal 5 at Stockholm Arlanda Airport. This upgrade includes a new, state-of-the-art security checkpoint leading directly into a newly designed marketplace. The 11,000-square-meter space will serve as a central hub for shopping and dining options. Subsequent phases are expected to be completed by late 2024 and early 2025.

Axtelius acknowledged that while ARN currently has sufficient capacity to meet demand, Swedavia is focused on proactive planning to address future capacity and sustainability needs. The company achieved fossil-free airport operations across all ten airports by 2020 and aims for all ground operations by other operators to follow suit by the end of 2025.

The decision by Sweden’s government to eliminate the aviation tax, originally introduced by the previous left-wing administration in 2018 to mitigate climate change impacts, is seen as a crucial step toward enhancing passenger growth. The tax had hindered Sweden’s recovery from the pandemic compared to its Scandinavian neighbors. The previous tax rates varied depending on the passenger’s final destination, with domestic flights and routes within the European Union taxed at SEK76 ($7.40) and longer sectors, like flights to the U.S., subject to SEK315 ($30.60).

With the anticipated removal of this tax, Swedavia is well-positioned to further increase international traffic, enhance connectivity, and continue its commitment to sustainable aviation practices.

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Swedavia Sees Growth as Sweden Scraps Aviation Tax

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