Swedish domestic aviation continues to have a tough time.

The trend is visible in several places in Europe, but the development in Sweden stands out.

”"We are seeing a significant reduction," says Jean-Marie Skoglund at the Swedish Transport Administration.

The pandemic caused flying to slow down significantly. But for domestic flights in Sweden, the decline had already begun.

Between 2018 and 2019, there was a significant drop in the number of passengers traveling by air within Sweden, according to Jean-Marie Skoglund, aviation market analyst at the Swedish Transport Administration. International flights also showed a decrease just before Covid hit.

”They say the pandemic contributed to the decline in flights, but we could see these declines in domestic flights already in the fall of 2017, but they hit hard in 2018 and 2019,” says Skoglund. 

According to statistics from Eurostat, only a few countries within the EU have a greater decrease than Sweden in terms of domestic travel.

In Germany, this is a decrease of 52 percent between 2017 and 2023. In Sweden, domestic flights decreased by 41 percent during the same period.

The same trend is also seen among our Nordic neighbors, although the decline has not been as great as in Sweden.

In countries such as Spain, Italy and Portugal, the number of passengers has instead increased.

”"Sweden has the third largest geographical area in the EU. Yet we see a significant decrease here, while the average for the entire EU is minus 5 percent," says Jean-Marie Skoglund.

Why is such a large loss seen in Sweden? Several factors are at play here. For a long time, there has been a lack of competition in the domestic market with fewer and fewer players. This in turn leads to higher ticket prices, according to Jean-Marie Skoglund. In Spain, for example, there is a larger market for low-cost flights.

”"Low-cost flights are a big explanation for why Spain is increasing domestically. We don't have that in Sweden."” 

Skoglund also points out that the business community is not traveling in the same way as before. This may explain, among other things, the large reduction at the airports in Malmö and Gothenburg, where many trips to Stockholm previously took place during the day.

Aviation emissions and their impact on the environment also contribute and have led organizations, municipalities and authorities to introduce different policies for business travel – and this is having a hard time on domestic aviation, says Skoglund.

”"In addition to this, you also have a general opinion, a concern about the climate impact of aviation."”

But while Swedes are shying away from domestic flights, they are not as hesitant to book holiday trips to destinations abroad. International flights are increasing, although at a lower level compared to before the pandemic. 

Are there any consequences of the reduction in flights on Swedish soil?
”"It will be extremely difficult to maintain the infrastructure that exists in the country around the airports, which is also very important to have from a crisis preparedness perspective."”

In Sweden, there are 27 so-called emergency airports, which are ready if, for example, the healthcare system needs to transport patients.

”That type of preparedness will be very expensive,” says Jean-Marie Skoglund.

The Swedish Regional Airports interest group represents 33 airports run by regions and municipalities. They see how the deficits at the airports are growing.

”"Especially for smaller airports, margins are tough. Volumes have decreased and demand is so weak that it is difficult to achieve profitability in this," says CEO Peter Larsson. 

He highlights domestic flights as an important cog in the wheel when it comes to accessibility:

”"For example, when it comes to the inland areas of Norrland where the distance to Stockholm is great. There are road connections, but not trains. There, flights become an important component."”

According to Larsson, there is little indication that the trend will reverse. In the short term, more government support is needed, he says.

Jean-Marie Skoglund at the Swedish Transport Administration points to the importance of getting the aviation transition underway.

”Demonstrating that aviation can contribute to as little emissions as possible and that zero emissions can be achieved in the future is extremely important. But the transition will be difficult to manage if domestic travel continues to decline.”

Source: TT-DI.SE