From The Floor: Swedavia Sees Growing International Demand

arlanda
Credit: Swedavia

Swedish airport operator Swedavia is continuing to see growth in international traffic, with the removal of the Scandinavian country’s aviation tax from next July set to further boost its appeal.

Elizabeth Axtelius, Swedavia's director of aviation business, tells Aviation Week that the company’s 10 airports have collectively added 25 new routes this summer, including 17 from Stockholm Arlanda Airport and eight from Göteborg Landvetter Airport.

“During the summer season of 2024, Stockholm Arlanda Airport (ARN) has had several direct routes to important hubs in North America,” Axtelius says. “Air Canada, United Airlines and Delta Air Lines have operated routes to Toronto, Montreal and New York several times a week, increasing the connectivity between Sweden and the North American continent.

“And looking forward to the winter season of 2024-25, we have Star Alliance carrier All Nippon Airways establishing at Stockholm Arlanda Airport with a direct route to Tokyo Haneda.”

Axtelius adds there has also been an expansion in charter flights at Malmö, Luleå, Umeå and Åre Östersund airports.

Looking ahead, she says that Swedavia is eyeing potential growth in destinations like Saudi Arabia, India and Southeast Asia. “In a couple of years’ time traffic into Saudi Arabia would make sense, for example,” she says. “Sweden is a large market, and we have a large Muslim community and a lot of VFR traffic. A big hub in Southeast Asia is also something we’re looking into as well as India and a long-haul leisure route.”

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Despite Sweden’s capacity still lagging 2019 levels, Axtelius emphasizes that Swedavia is committed to creating a favorable environment for airlines. The company is enhancing its infrastructure and improving airport services while planning for future travel trends.

“In September 2023, we carried out the first phase of our transformation of Terminal 5 at Stockholm Arlanda Airport,” she says. “A new, state-of-the-art security check point is the entry point to airside, leading straight into the new marketplace.

“This 11,000-m2 space provides the heart for Stockholm Arlanda’s commercial offering with a variety of food and beverages as well as shopping options. The two subsequent phases of the new marketplace are well underway and will open during [the fourth quarter] 2024 and [the first quarter] 2025.”

Despite having sufficient capacity at ARN to meet current demand, Axtelius explains that Swedavia recognizes the need for forward planning, especially regarding capacity and sustainability. As a leader in low-climate-impact operations, the group achieved fossil-free airport operations across all 10 airports by 2020 and aims for all ground operations by other operators to also be fossil-free by the end of 2025.

In September, the company welcomed a move by Sweden’s government to scrap its tax on airline tickets July 1, 2025. Sweden’s previous left-wing government introduced the tax in 2018 to reduce demand for air travel, thereby lessening aviation’s impact on climate change. However, the move heralded weaker passenger growth in Sweden and a slower recovery from the pandemic compared with its Scandinavian neighbors.

The current tax rate depends on the passenger’s final destination and ranges from SEK76 ($7.40) for domestic flights and to countries within the European Union, to SEK315 ($30.60) for longer sectors like trips to the U.S.

David Casey

David Casey is Editor in Chief of Routes, the global route development community's trusted source for news and information.

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