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Air France-KLM announced today that it is looking to acquire a majority stake in Scandinavian Airlines (SAS). With this proposed investment, it will increase its ownership from the current 19.9% to 60.5%. This would strengthen its presence in Northern Europe and further deepen its strategic integration with SAS.
The planned acquisition will see Air France-KLM purchase all of the shares held by Castlelake and Lind Invest, with the transaction targeted for the second half of 2026 (pending regulatory approvals and satisfaction of closing conditions). The Danish State, which currently holds a 26.4% stake in SAS, will retain its ownership and board representation.
This initiative builds on the partnership that began in 2024. This included expanded codeshare and interline agreements, as well as SAS joining the SkyTeam airline alliance. This collaboration along with SAS’ successful financial turnaround encouraged Air France-KLM to pursue a deeper integration and larger share of ownership.
Benjamin Smith, CEO of Air France-KLM, said:
We are excited by the prospect of fully welcoming SAS into the Air France-KLM family. 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, as well as the SAS teams whose dedication has been key to restore their airline to its rightful place. They would join a group of airlines united by a shared commitment to excellence and a more sustainable future for air transport. We look forward to this new chapter in our shared journey.”
The exact investment amount will be determined at the time of closing, based on SAS’ most recent financials, including EBITDA and net debt. Air France-KLM confirmed that the deal aligns with its medium-term financial outlook and capital allocation strategy. Once finalized, SAS would become a full subsidiary of Air France-KLM. It would take the majority of board seats and integrate SAS across all business areas including operations, folding it into the Flying Blue loyalty program, adding it to the transatlantic joint venture, and strategic planning.
The acquisition makes sense and is far from the only one in the works. TA Airways’ is working on its full integration into the Lufthansa Group and eventual joining of Star Alliance next year. Air France-KLM is also trying to buy a majority stake in Air Europa and also might want to buy TAP Air Portugal.
Anthony’s Take: SAS worked its way out of financial issues over the past few years and is making its customer experience better. From bringing back Business Class on short-haul flights to adding Starlink Wi-Fi across its fleet, SAS is making itself a better airline and one that will fit nicely with Air France-KLM.
(Image Credits: Air France-KLM and SAS.)
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