The Air France-KLM airline group has begun "the process of acquiring a majority stake in the capital" of the Scandinavian airline SAS, in which it is already one of the main shareholders, the group announced today.
"Air France-KLM plans to increase its stake in SAS from the current 19.9% to 60.5% by acquiring all the shares held by Castlelake and Lind Invest," the Franco-Dutch group announced.
This is the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals.
In the summer of 2024, the group acquired a stake in the Scandinavian airline, weakened by the Covid-19 epidemic, and initiated a commercial cooperation between Air France, KLM and SAS, based on extended code-sharing and interline marketing agreements.
This cooperation, initiated by expanded code-sharing and interline marketing agreements between Air France, KLM, and SAS, has been strengthened by SAS's entry into the SkyTeam alliance. Air France-KLM aims to finalize the transaction by the second half of 2026.
At the time, Air France-KLM made no secret of its intention to "increase its stake in order to become the majority shareholder after a minimum period of two years".
"Subject to obtaining the necessary regulatory approvals and the lifting of the conditions precedent, the objective is to complete the transaction in the second half of 2026," said the group, for whom this project "reflects the success of the restructuring of SAS and the positive results of the commercial cooperation initiated in 2024".
Benjamin Smith, CEO of Air France-KLM:
“ We are delighted to welcome SAS as a full member of the Air France-KLM family… SAS is performing excellently following its successful restructuring, and we are confident that its potential will continue to grow through further integration within the Group. This would be beneficial for our customers and Scandinavian travelers, who would benefit from improved connectivity, as well as for the SAS teams, whose commitment has been instrumental in restoring their airline to its rightful place. SAS would join a group of airlines united by a shared ambition for excellence and a commitment to more sustainable air travel. We look forward to opening this new chapter together. ”
The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings (EBITDA) and net debt, added the company.
It's to be noted that in the year 2024, SAS generated revenue of €4.1 billion and carried approximately 25 million passengers. During the same period, Air France-KLM generated revenue of €31.5 billion and carried approximately 98 million passengers.
