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Fortune
Fortune
Nino Paoli

Sweden reverses air travel tax, pushing against ‘flight shaming’ wave it created

Passengers are silhouetted in front of SAS planes as they stand tin the departure hall at Arlanda airport, Stockholm, Sweden, on July 4, 2022 after it became clear that 900 pilots of Scandinavian airline SAS would be taken out on strike. (Credit: Photo by -/TT News Agency/TT NYHETSBYRÅN/AFP via Getty Images)
  • Sweden reversed its air travel tax policy that aimed to curb carbon emissions in 2018, during a time when “flight shaming” had been popularized by environmental activists like Greta Thunberg. Since its inception, domestic air travel has slumped—but the shift, effective July 1, has aviation industry leaders hopeful for future investments in sustainable technology.

Sweden is abandoning a tax on air travel six years after its introduction as the government looks to boost the country’s commercial aviation industry. 

The government reversed the 2018 policy, effective July 1, that placed levies on airline tickets, depending on distance flown. The flip flop comes from a country that invented the Swedish term “flygskam,” or flight shame, during a pre-pandemic anti-air travel movement championed by environmental activist Greta Thunberg. Flight shame is a social crusade that discourages air travel because of its significant environmental impact, most notably its contribution to carbon emissions.

Since the inception of the tax, Sweden has seen a steady decrease in air traffic, particularly to the country’s rural airports. In September 2024, a center-right coalition, which depends on the support of far-right Sweden Democrats, presented a 2025 budget proposal that eliminated the tax.

“This will lead to lower prices for travellers and rising demand, boosting the competitiveness of airlines,” Sweden Democrats Member of Parliament Linda Lindberg said in a press conference reported by Reuters last year.

The Guardian reported the move is expected to cut ticket prices from Sweden by 80 kronor ($8.44 USD today) on European flights and 325 kronor ($34.28 USD today) on those outside Europe.

The government-owned airport network Swedavia AB, which operates 10 of Sweden’s busiest airports including ones in Stockholm and Gothenburg, saw a consecutive seven-month downtrend in passengers at their locations from September 2018 to March 2019, Bloomberg reported. A 2019 survey by the World Wildlife Fund found that 23% of Swedes held off from traveling by air in the previous year to reduce their climate impact. That number was up 6% from 2017.

At the same time, train travel passenger numbers jumped to a record 32 million in 2018. A majority of Swedes in 2018 supported the air tax, Stockholm’s newspaper Dagens Nyheter reported.

Since the policy came into effect in 2018, flights landing in Swedish airports dropped by more than 35%, according to aviation data firm Cirium, reported by Bloomberg. Irish airline Ryanair, which advertises cheap ticket fares, withdrew entirely from Sweden’s domestic market last year. 

Now, Swedish policymakers’ move to revive the country’s air travel market has given airlines hope for the future.

“The previous aviation tax did nothing to support the transition to reducing emissions,” International Air Transport Association Area Manager Catrin Mattsson wrote in a LinkedIn post. “With the tax abolished, instead of funds leaving the industry, they can be used for investments in Sustainable Aviation Fuel, new technologies, and innovations needed for the transition to net-zero CO2 emissions.”

“Sustainability remains a priority for Sweden, but the focus is now on reducing emissions rather than discouraging air travel,” Mattsson wrote.

But others don’t see the policy change as good news.

“The removal of the aviation tax is another example of the government’s stupid and counterproductive policies,” Sweden’s Green Party spokesperson told Bloomberg.

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