Air France-KLM is set to raise its stake in Scandinavian airline SAS to 60.5%. This move comes as part of efforts to consolidate Europe’s disjointed airline industry, with airlines aiming to bolster their competitive stance.
The Franco-Dutch airline group announced on Friday that it plans to increase its current 19.9% share by purchasing shares from major stakeholders Castlelake and Lind Invest.
According to Air France-KLM, the purchases—pending regulatory approval—are expected to be finalized in the latter half of 2026.
The company stated that the value of this investment will depend on SAS’s recent financial performance, although specific metrics were not disclosed.
Steven Zaat, the financial director, mentioned during a call with analysts that the company anticipates achieving significant synergy, potentially amounting to hundreds of millions of euros, from the increased stake in SAS.
Zaat clarified that the transaction would be financed through cash or simple debt, and it wouldn’t impact the company’s commitment to reduce hybrid debt, emphasizing that there’s room for maneuver.
SAS expressed its support for Air France-KLM’s decision.
SAS CEO Anko van der Werff remarked to Danish TV2 that they were very pleased with the move, noting that more European integration was needed.
“As it stands now, even with Air France-KLM holding 19.9%, they still compete with us,” he said. “But with over 50% new shares, we can leverage synergies and provide greater benefits to our customers.”
SAS also mentioned its intention to keep investing in its fleet and network.
This year, Air France-KLM announced plans to invest about $144.5 million to increase its presence in Sweden, Denmark, and Norway through its initial stake in SAS.
However, SAS faced Chapter 11 bankruptcy protection in August 2024.
The two airlines have been collaborating commercially since the summer of 2024. Air France-KLM noted that managing SAS would enable them to grow in the Scandinavian market and create additional shareholder value.
“Post-restructuring, SAS has demonstrated impressive results. We are optimistic about the airline’s growth prospects through more profound integration within the Air France-KLM Group,” the statement added.
This agreement suggests a necessity for competitiveness against both local players and Middle Eastern rivals, as executives aim for further integration in Europe’s fragmented aviation landscape.
SAS operates 138 aircraft and served over 25 million passengers last year, generating approximately 4.1 billion euros ($4.8 billion).
Air France-KLM holds a majority of the board seats, while Denmark retains a 26.4% stake in SAS along with its representation on the board.
