Aviation tax is not a solution to the airline industry’s sustainability challenge, the International Air Transport Association (IATA) has claimed.
In welcoming Sweden’s decision to abolish the country’s aviation tax – which charged passengers anything from around €10 to almost €50, depending on their flight destination – IATA said the tax had been a drag on Swedish economic competitiveness and made no positive environmental impact.
It said the revenues from the tax were not being used to invest in vital environmental solutions like sustainable aviation fuel (SAF).
Rafael Schvartzman, IATA’s 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.”
“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. We look forward to working with the Swedish government and energy industry to help focus delivery of this,” said Mr Schvartzman.
