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Air France-KLM acquires majority stake in SAS

Air France-KLM announced on Friday that it intends to increase its stake of Scandinavian airline SAS from 19.9% to 60.5% by acquiring stakes currently held by Castlelake and Lind Invest, the top shareholders.

It said that the purchase is subject to receiving the necessary regulatory approvals and should close in the second quarter of 2026.

The company said that the value of the investment will be determined by closing, and will be based on SAS’s most recent financial performance including EBITDA, net debt, and other factors.

Air France-KLM's CEO Ben Smith said in March that his company is looking to increase its stake in SAS as the airline was meeting all the required milestones. This included integration into SkyTeam, an alliance of airlines which Air France KLM also belongs.

Since summer 2024, the two carriers have had a successful commercial relationship. Air France-KLM said that a control of SAS would enable it to expand on the Scandinavian market, and create value for its shareholders.

Smith said that "SAS has performed well following their successful restructuring and we're confident the airline will continue to grow as it is integrated deeper into the Air France-KLM Group."

Executives are looking to consolidate the fragmented European airline industry in order to compete against U.S. and Middle Eastern competitors.

SAS had 138 aircraft on service last year and transported more than 25 millions passengers, generating revenues in excess of 4.1 billion euro.

The group will have the majority of the seats in the SAS board, while the Danish government retains its 26,4% stake and its seat on the board. (Reporting and Editing by Marguerita Chy)

(source: Reuters)