Discount on flight fees to increase domestic flights

It is about fees that airlines have to pay to state-owned Swedavia, which operates ten Swedish airports, with Arlanda as the largest. Last year, they accounted for 63 percent of the company's total revenue.

In practice, it is about what the flights have to pay to take off and land at Arlanda. Now the company is releasing its fees for next year. One novelty is something the company calls a hub incentive – that companies with lines at smaller airports will receive a lower fee if they operate at least two departures per day.

"Airlines that choose to fly with many departures per day, between Arlanda and a smaller airport, get a fairly strong discount on take-off and passenger fees," says Aron Backström, commercial manager at Swedavia.

Exactly how big the discount will be in total is unclear, but it is about 40 percent reductions on take-off and the passenger fee. Then, however, there are other fees for the airlines that affect the level.

All domestic routes to Arlanda are included, as well as flights from smaller cities in Norway, Finland, the Baltics and northern Poland, according to Swedavia.

The reason for the new system is that Swedavia wants to increase domestic flights. Aron Backström points out that international flights are back to pre-covid 2019 levels. Domestic flights have decreased by 40 percent.

In its latest quarterly report, Swedavia states that domestic travel is still weak and that several airlines signal lower capacity ahead of winter.

- We are doing this to strengthen Arlanda, make it easier for business travelers but also to create a basis for international long-haul routes, says Aron Backström.

Irish low-cost airline Ryanair has previously said it would offer 60 new routes if airport charges were reduced. Swedavia's CEO Mats Johannesson said in an earlier interview with DN that a dialogue was held with the airlines about the levels for 2027.

Aron Backström says, however, that the discounts are not aimed directly at Ryanair.

- We have had dialogue with all our large customers, but we are not targeting specific companies. We target companies that fly at smaller airports and build a hub at Arlanda, says Aron Backström.

The idea is that increased domestic traffic should in turn attract larger airlines to establish routes at Arlanda.

Seen from a climate perspective, increased air travel is negative. How does Swedavia view them introducing measures to increase travel?

- It should not be understated that aviation has an environmental impact. But I think it is absolutely necessary for an elongated country like Sweden that the infrastructure works, claims Aron Backström.

In total, Swedavia is raising airport charges by 5.9 percent for next year. Last year the increase was 9 percent.

How do you think the increase will affect the other air traffic that is not covered by the new discounts?

- Swedavia's fee levels are low compared to other European airports. We assess that the market can handle the increase, says Aron Backström.