Air France-KLM said on Friday that it plans to increase its stake in Scandinavian airline SAS to 60.5%, up from around 20% currently.
The additional shares will be acquired from Castlelake and Lind Invest, for an amount that will be determined by SAS’s financial performance at closing.
The sale is expected to be completed in the second half of 2026, subject to regulatory approval. The European Commission is likely to scrutinise the merger with care to ensure that it doesn’t threaten fair competition. The Commission has already shown some opposition to airline consolidation. A merger between Ryanair and Aer Lingus was blocked on several occasions, while IAG abandoned plans to take over Air Europa due to expectations that the deal wouldn’t receive the regulatory green light.
Despite this, airlines in Europe continue to seek consolidation options in order to compete with overseas rivals, particularly from the US and the Middle East.
Lufthansa, for example, has recently taken a stake in ITA Airways and airBaltic.
“As global interest in Scandinavia continues to grow, we believe this consolidation strengthens SAS’ ability to connect Scandinavia with the world — and the world with Scandinavia — by positioning Copenhagen as our global hub for the region, while continuing to uphold strong and strategic operations in both Oslo and Stockholm,” said Anko van der Werff, president and CEO of SAS.
Benjamin Smith, CEO of Air France-KLM, said: “Following their successful restructuring, SAS has delivered impressive performance, and we are confident that the airline’s potential will continue to grow through deeper integration within the Air France-KLM Group. This operation would benefit our customers and all Scandinavians who would enjoy enhanced connectivity.”
Air France-KLM took an initial stake in SAS in 2023 as the struggling Scandinavian airline underwent a two-year restructuring process following its bankruptcy filing.
The Danish government also holds a 26.4% stake in SAS and will retain its board seats if the sale to the Franco-Dutch carrier goes through.
SAS has a fleet of 138 aircraft, carried more than 25 million passengers last year, and flies to over 130 destinations.
