Swedavia Launches Fee Discounts to Boost Domestic Flights at Arlanda Airport

Swedavia, the operator of ten Swedish airports including Arlanda, has introduced a major fee discount initiative to increase domestic air travel, which has declined by 40% since pre-COVID levels. Under this new strategy, airlines operating at least two daily flights between Arlanda and smaller airports will receive up to 40% reductions on takeoff and passenger fees, a move aimed at stimulating job-related travel and laying groundwork for international routes.

This fee restructuring, part of a one billion kronor investment over the next five years, is described by CEO Mats Johannesson as "the largest transformation of its kind." While overall airport fees will rise by 5.9% next year—after a 9% increase last year—Swedavia believes the market can absorb these changes given their fees remain lower than many European counterparts. Commercial director Aron Backström clarified that the discounts are not targeted at any specific airline despite Ryanair's indication they could add 60 new routes if fees were lowered.

Swedavia’s latest quarterly report highlights continued weakness in domestic travel, contrasting with international flights that have returned to pre-pandemic levels. Backström also acknowledged environmental concerns associated with increased flying but emphasized the importance of maintaining efficient infrastructure for a geographically long country like Sweden.

Overall, Swedavia anticipates that the incentivized fee structure will attract more passengers, balancing out revenue loss from discounts through increased flight frequency and passenger numbers.