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Stockholm Arlanda Airport (photo: Swedavia)

Sweden air tax could help Danish aviation

Sweden’s newly introduced aviation tax could have the effect of boosting air traffic in Denmark.

Denmark could benefit from Sweden’s new aviation tax, which was introduced on Sunday, an aviation industry expert says.

The new tax will add an extra charge to all passenger flights from the country, something the Swedish government thinks will cut air travel’s impact on the climate.

This is because the move could have the unintended consequence of rerouting travellers through Denmark, Jacob Pedersen, a stockmarket analyst at Danish bank Sydbank tells the Danish news agency Ritzau.

“There is no doubt that the pendulum will swing away from Sweden and Norway, which has also recently introduced an aviation tax, when airlines are determining where they want to fly to and from,” he said.

“My best guess is that Denmark will see a positive effect without us really having to do anything.”

The Swedish tax will not result in a huge swing in business towards Danish aviation, “but there will be a tendency for airlines to choose Denmark,” Pedersen said. “That will give a better network and options for flights in and out of the country.”

Airline profits
All flights departing Swedish airports now have an added charge of between SEK 60 and SEK 400 (€6 to €39), depending on the destination. This is more likely to hit the profits of airlines rather than passengers, Pedersen thinks.

“Competition in the air travel industry is so great that the introduction of tax will not mean ticket prices rise accordingly. So it typically affects the economy of airlines in the end.”

That could amount to around DKK 100 million (€13 million) in the case of SAS, for example, Pedersen estimates.

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