The International Air Transport Association (IATA) has welcomed the Swedish government's decision to scrap the country's air ticket tax effective July 1, 2025, saying it was detrimental to Sweden's economic competitiveness without providing any environmental benefits.
The tax was introduced in 2018 and ranged from SEK76 kronor (USD7.49) to SEK504 (USD49.72) per ticket, depending on the destination. The Swedish government's announcement on September 3 to abolish it forms part of broader growth reforms, which include investments in infrastructure, research, and facilitating business operations in Sweden. The government said the aviation tax reform aims to enhance air travel accessibility across the country and shift from national to European regulatory measures for aviation. It is expected to result in reduced tax revenue of SEK870 million (USD85.8 million) in 2025, SEK1.82 billion (USD179.8 million) in 2026, and SEK1.88 billion (USD185.7 million) in 2027.
IATA praised the move as recognition that taxing air travel is economically counterproductive and ineffective for environmental goals. It urged investments in sustainable aviation fuels (SAF) and technology to achieve net-zero CO2 emissions by 2050.
Swedish airline BRA - Braathens Regional Airlines (Stockholm Bromma) equally welcomed the Swedish government's announcement, saying the tax was never effective as a sustainability policy as it was not based on the extent of climate-affecting carbon emissions. "Regardless of the actual climate impact of a passenger's specific flight, the flight tax is the same. In addition, aviation's climate-affecting carbon dioxide emissions in our market are already regulated by the European Emissions Trading System (EU-ETS), which is undergoing significant change where the free allocation is rapidly being phased out. In conclusion, starting in 2025, a blending requirement of SAF/biofuel will be introduced within the EU," the airline said in a statement.
