• Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Live and Let's Fly
  • Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Home » News » Sweden Mulls Pricey New Airline Tax
NewsNorwegian Airsas

Sweden Mulls Pricey New Airline Tax

Matthew Klint Posted onJune 8, 2017November 14, 2023 1 Comment

a room with chairs and a large window

Sweden’s governing coalition has proposed a tax of up to 439 Krona (~$49) on airfare originating in Sweden, a move that critics say will cripple the country’s growing and competitive aviation industry.

The UK’s “Air Passenger Duty” and Germany’s “Air Transport Tax” provide the blueprint for the Swedish government, which notes that airfare is the is the only form of transport in Sweden that is not taxed for its carbon emissions.

Like its European counterparts, the tax would be tiered, starting at ~$9 for domestic flights and rising as high as $49 for longhaul flights. This would be in addition to other government taxes that already support airport operations and the country’s infrastructure.

The tax has been introduced as part of this fall’s budget, meaning it would go into effect early next year if approved. Opposition parties in Sweden have vowed to flight it.

Critics: Not Worth the Job Losses

The International Airline Transport Association (IATA) argues that the measure will cost Sweden 7,500 jobs while making only a negligible difference to the environment.

In a penned op-ed letter (in Swedish), Rickard Gustafson (SAS President and CEO) and Bjørn Kjos (Norwegian President and CEO) argue that the tax is counterproductive. They assert a shared goal of reducing greenhouse emissions, but a different roadmap for reaching that goal. Promising a 50% carbon reduction by 2030 over 2005 levels, they point to more fuel efficient aircraft and the use of biofuels as the primary engines to achieve those reductions.

The leaders also point to projections indicating the the 2BN Kroner the new tax would generate would be offset by a GDP dip of 11BN. Why? Higher airfare would discourage travel to or transit through Sweden, creating a ripple-effect that makes the proposed tax counterproductive. Kjos warns a tax will impact the viability of routes from Sweden and threaten the viability of Stockholm’s Arlanda Airport.

Furthermore, IATA asserts the tax will be redundant after the implementation of Carbon Offsetting Scheme for International Aviation, known as CORSIA. That’s a voluntary carbon offset measure that does not kick in until 2021, so I can see why that “alternative” may not be persuasive to Swedish lawmakers.

CONCLUSION

We saw what happened when the UK introduced its “Air Passenger Duty”. It started small and rose…and rose…and rose again. I’m going to London next week but will likely be returning home from Dublin because it is cheaper to buy a ticket from London to Dublin and fly home from Dublin than pay the pricey taxes to travel home directly from the UK. That’s not making the environment cleaner…

Get Daily Updates

Join our mailing list for a daily summary of posts! We never sell your info.

You have Successfully Subscribed!

Previous Article Review: British Airways 747-400 First Class London to New York
Next Article A Glowing Review of Delta from My German Cousins

About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

Related Posts

  • Emirates Most Profitable Carrier

    Emirates Declares Itself World’s Most Profitable Airline

    May 8, 2025
  • Army Helicopter Flights DCA

    Army Grounds Helicopter Flights Near DCA After Another Close Call

    May 7, 2025
  • TLV Rocket Attack

    Delta and United Suspend Tel Aviv Flights After Houthi Rocket Strike Near Airport

    May 5, 2025

1 Comment

  1. henry LAX Reply
    June 8, 2017 at 10:02 am

    UK and DE’s variants are diff from each other – UK APD, IIRC, only punishes those originating the UK, not those transiting, but DE’s APT is pretty much slapped on all itineraries that include a German departure.

    As for the critics, and UK and DE taxes are clear examples on how people continue flocking to London in droves and how FRA and MUC continue to be bursting at the seams despite the levies.

    As for Sweden (read : ARN), their biggest risk remains SAS and Norwegian shifting more connecting traffic in favor of OSL and CPH.

Leave a Reply to henry LAX Cancel reply

Search

Hot Deals for May

Note: Please see my Advertiser Disclosure

Capital One Venture X Business Card
Earn 150,000 Miles Sign Up Bonus
Chase Sapphire Preferred® Card
Earn 100,000 Points
Capital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit Card
Earn 75,000 Miles!
Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card
Earn 75,000 Miles
Chase Ink Business Unlimited® Credit Card
Earn $750 Cash Back
The Business Platinum Card® from American Express
The Business Platinum Card® from American Express
Earn 120,000 Membership Reward® Points

Recent Posts

  • a row of seats with monitors on the side
    What I Booked Before Emirates Restricted First Class Awards May 12, 2025
  • Slippers Airport
    My Accidental Footwear Fail At LAX May 12, 2025
  • Chase Sapphire Lounge LGA
    Crazy Chase Sapphire Reserve Changes Floated May 11, 2025
  • airport control tower atc duffy
    A Deeper Dive Into Duffy’s Air Traffic Control Overhaul Plan May 11, 2025

Categories

Popular Posts

  • a room with a table and benches
    Where To Smoke At Paris Charles De Gaulle Airport (CDG) April 26, 2025
  • United Airlines Polaris Lounge Chicago Review
    Review: United Polaris Lounge Chicago (ORD) May 1, 2025
  • United Airlines Refresh Polaris Lounge Chicago
    First Look: United Airlines Reopens Renovated Polaris Lounge In Chicago (ORD) April 29, 2025
  • a hand holding a blue card
    Chase Sapphire Preferred 100K Bonus Offer Ending Soon May 2, 2025

Archives

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    

As seen on:

facebook twitter instagram rss
Privacy Policy © Live and Let's Fly All Rights Reserved. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Live and Let's Fly with appropriate and specific directions to the original content.