SAS airline warns of cuts to Norway flight routes over rising taxes

Kjetil Håbjørg, CEO of SAS Norway, has warned that the airline may have to reduce routes if the Norwegian government continues to increase taxes on the aviation industry.

Advertisement

The SAS executive argued that Norway already imposes the highest tax levels in the sector and that further increases could harm the industry and reduce flight availability.
“The limit has been reached,” Håbjørg told the newspaper E24, criticising the government’s plans to raise taxes over the next five years.
READ ALSO: Why a Norwegian airline wants to charge tourists more than residents
He warned that higher taxes could lead to fewer flights, negatively impacting the route offerings.

The state-owned airport operator, Avinor, has been struggling financially due to reduced air traffic.
To address this, the Norwegian government has announced cuts to the air passenger tax but plans to raise airport taxes over the coming years to stabilise Avinor’s finances.
These airport taxes, paid by airlines to Avinor, are intended to support the operation and maintenance of Norway’s airports.
Different situation in Sweden
Håbjørg highlighted the contrast with Sweden, where airport taxes have been cut.
He urged the Norwegian government to reconsider its approach, noting that the aviation industry already contributes significantly to infrastructure costs and environmental quotas.
The CEO of SAS Norway expressed concerns that additional fiscal burdens will force not just SAS but other airlines to reduce their services as well.
Advertisement
NHO Aviation, which represents the industry, has previously called for air passenger taxes to be used to reduce emissions through sustainable fuels.
Håbjørg also called on Avinor to review its own expenses to help mitigate the industry’s financial strain.
“We think that Avinor should also look at their own costs and what they can do to reduce these, as the entire industry is doing,” he said.
READ MORE: What you need to know about Norway’s Oslo Gardermoen Airport

More

#Travel news

Comments

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in here to leave a comment.

See Also

The SAS executive argued that Norway already imposes the highest tax levels in the sector and that further increases could harm the industry and reduce flight availability.
“The limit has been reached,” Håbjørg told the newspaper E24, criticising the government’s plans to raise taxes over the next five years.
READ ALSO: Why a Norwegian airline wants to charge tourists more than residents
He warned that higher taxes could lead to fewer flights, negatively impacting the route offerings.
The state-owned airport operator, Avinor, has been struggling financially due to reduced air traffic.
To address this, the Norwegian government has announced cuts to the air passenger tax but plans to raise airport taxes over the coming years to stabilise Avinor’s finances.
These airport taxes, paid by airlines to Avinor, are intended to support the operation and maintenance of Norway’s airports.
Different situation in Sweden
Håbjørg highlighted the contrast with Sweden, where airport taxes have been cut.
He urged the Norwegian government to reconsider its approach, noting that the aviation industry already contributes significantly to infrastructure costs and environmental quotas.
The CEO of SAS Norway expressed concerns that additional fiscal burdens will force not just SAS but other airlines to reduce their services as well.
NHO Aviation, which represents the industry, has previously called for air passenger taxes to be used to reduce emissions through sustainable fuels.
Håbjørg also called on Avinor to review its own expenses to help mitigate the industry’s financial strain.
“We think that Avinor should also look at their own costs and what they can do to reduce these, as the entire industry is doing,” he said.
READ MORE: What you need to know about Norway’s Oslo Gardermoen Airport