Sweden will scrap its tax on airline tickets from the middle of next year in a move to reduce prices and boost accessibility and competitiveness.

The tax will end on July 1, 2025.

Initially introduced in 2018 to lessen aviation’s impact on climate change, it resulted in weaker passenger growth and a slower recovery from the pandemic compared with neighbouring Scandinavian countries.

The tax currently charges passengers depending on their destination, ranging from SEK76 ($7.40) for domestic flights and to countries within the European Union and SEK315 ($30.60) for longer trips.

The International Air Transport Association (IATA) has welcomed the announcement from the Swedish government.

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