Air France-KLM to Increase Stake in Scandinavian Airline SAS
Air France-KLM has announced plans to boost its stake in Scandinavian airline SAS to 60.5%, marking a significant move towards consolidating Europe’s airline sector. The Franco-Dutch airline group intends to increase its current stake of 19.9% by acquiring the shares held by top shareholders Castlelake and Lind Invest.
The purchase, subject to regulatory approvals, is expected to be finalized in the second half of 2026. The value of the investment will be based on SAS’s latest financial performance, including core earnings and net debt.
Air France-KLM anticipates generating significant synergies from raising its stake in SAS, with finance chief Steven Zaat highlighting potential “three-digit million” euros in savings. The funding for the deal is expected to come from cash reserves or a bond issuance, without impacting the group’s debt reduction efforts.
SAS CEO Anko van der Werff welcomed Air France-KLM’s decision, emphasizing the importance of European consolidation in the airline industry. With the increased stake, SAS looks forward to tapping into synergies and offering enhanced benefits to customers.
The Danish government, retaining a 26.4% stake in SAS, will maintain its seats on the board. SAS plans to continue investing in its fleet and network to drive growth and competitiveness in the market.
Air France-KLM initially invested around $144.5 million in SAS in 2023, with the option to become a controlling shareholder after a minimum of two years. Following SAS’s exit from Chapter 11 bankruptcy protection in 2024, the two carriers have already established a commercial cooperation.
Air France-KLM CEO Ben Smith expressed confidence in SAS’s potential for growth within the group, citing the airline’s impressive performance post-restructuring. The deal signifies a strategic move to expand Air France-KLM’s presence in the Scandinavian market and create additional value for shareholders.
Executives in the airline industry are increasingly pushing for further consolidation to compete effectively with global rivals. SAS, with 138 aircraft in service and over 25 million passengers transported last year, generated revenues of 4.1 billion euros.
With Air France-KLM holding a majority of seats on SAS’s board of directors, the partnership is poised to drive strategic growth and enhance competitiveness in the European airline sector. The Danish government’s continued stake in SAS reinforces the airline’s commitment to serving the Scandinavian market effectively.
