The International Air Transport Association has welcomed the Swedish government’s announcement that it will axe the country’s aviation tax from July 1, 2025.
The tax, which charges passengers between SEK76-504 (£5.63-£37.35) depending on destination, is a “drag on Swedish economic competitiveness while making no positive environmental impact”, said Iata.
Rafael Schvartzman, Iata regional vice-president for Europe, said: “We congratulate the Swedish government for abolishing the aviation tax. It is excellent news, which recognises that taxation of air passengers is counterproductive economically and ineffective environmentally.
“Better air connectivity boosts the productive capacity of the economy, leading to stronger tax revenues in the long term.
“Sweden’s post-pandemic aviation recovery has notably lagged its neighbours, a problem made worse with the tax.
“And the number of routes had still not rebounded to 2019 levels by the end of 2023.
“The removal of this tax shows the Swedish government is serious about restoring access to air travel for all its citizens across the whole country, and will give a strong positive economic signal for investors.”
Iata claimed the removal of the tax also confirms that aviation taxation is not a solution for air travel’s sustainability challenge.
Schvartzman added: “Aviation must get to net-zero CO2 by 2050. That is non-negotiable. But that will not be achieved by pricing people off planes.
“The solution is to invest in sustainable aviation fuels and other technologies. Sweden is in a prime position to make itself a leader in these fields, with its proud domestic aviation industry and its abundant resources to create SAF.”
The Telegraph reported that the prime minister, Linda Lindberg, of the Sweden Democrats, said: “This will lead to lower prices for travellers and rising demand, boosting the competitiveness of airlines.”
The Telegraph noted the tax was introduced around the same time as the “flight shame” movement emerged, with climate campaigners calling on the public to give up flying to cut down on emissions.
The movement was born in Sweden, where it is known as “flygskam”, and Swedish climate activist Greta Thunberg helped to popularise it.
The Telegraph reported climate campaigners criticised the abolition of the tax but noted that shares in Norwegian Air jumped by 6.4% in Oslo after the announcement.