British Airways (BA) will introduce cheap flights to Stockholm from London City Airport in the new year.
The national carrier, which operates BA CityFlyer at the Docklands airport, is also taking up options for two new Embraer E-190 jets as it looks to expand its fleet.
It is expected that the jets will be delivered in spring 2011 and will allow the airline to increase its presence at London City.
Luke Hayhoe, BA CityFlyer's commercial manager, said he is "delighted to confirm" the airline's plans in terms of expansions to both its fleet and route network.
"This does of course present opportunities for us to further expand our London City schedule," he commented.
"The success of our recently launched Copenhagen service and customer requests made the decision on Stockholm an exciting choice. We will announce further new services in the coming months."
Earlier this month, Swiss International Airlines' passenger Dr Paul Thind became the 30 millionth passenger to use the Docklands airport.