Franco-Dutch carrier to boost stake to 60.5% amid broader consolidation push
Air France-KLM plans to increase its stake in Scandinavian airline SAS from 19.9% to 60.5%, marking a major step in its strategy to consolidate the European airline sector and strengthen its footprint in Northern Europe.
The Franco-Dutch group announced Friday that it would acquire the stakes held by Castlelake and Lind Invest, SAS’s top shareholders. The transaction, subject to regulatory approval, is expected to close in the second half of 2026. The final value of the deal will be based on SAS’s latest financial performance, including EBITDA and net debt, although specific figures have not been disclosed.
Synergies and strategic rationale
Air France-KLM CFO Steven Zaat told analysts that the acquisition is expected to deliver synergies in the “three-digit million euro” range. He added that the deal would be financed either through cash or a standard bond, with no impact on the company’s hybrid debt reduction strategy.
“We have ample room for it,” Zaat noted. Shares of Air France-KLM were flat in early trading following the announcement.
JPMorgan analysts welcomed the move, citing SAS’s presence in a GDP-rich region and the potential for cost synergies once SAS is fully integrated. “This is not game-changing in size, but industry consolidation is a clear positive,” they wrote.
SAS CEO welcomes move toward integration
SAS CEO Anko van der Werff expressed optimism about the move, telling Danish broadcaster TV2: “European consolidation had to happen further, and we’re very happy to be part of that.” He added that Air France-KLM’s majority control would enable deeper operational synergies and stronger customer offerings.
SAS exited Chapter 11 bankruptcy protection in August 2023 and has since entered a commercial partnership with Air France-KLM. That cooperation has now paved the way for a full-scale integration.
Strategic value and regional expansion
Air France-KLM first invested $144.5 million for its initial SAS stake in 2023, with the right to become a majority shareholder after two years. The group sees SAS as a key platform for growth in Sweden, Denmark, and Norway. The acquisition gives Air France-KLM board majority control at SAS, while the Danish government will retain its 26.4% stake and board seats.
With 138 aircraft and more than 25 million passengers served last year, SAS generated revenues of €4.1 billion ($4.8 billion) in 2023. Air France-KLM CEO Ben Smith praised the airline’s turnaround, saying, “We are confident that SAS’s potential will continue to grow through deeper integration within the Air France-KLM Group.”
Industry-wide consolidation trend
The SAS deal is part of a broader wave of consolidation across Europe’s aviation sector. Earlier this year, Germany’s Lufthansa acquired a 41% stake in ITA Airways and a stake in Air Baltic. Meanwhile, the Portuguese government is seeking to privatize TAP Air Portugal, and negotiations continue for stakes in Spain’s Air Europa.
Executives argue that consolidation is necessary for European airlines to remain competitive with U.S. and Gulf carriers. With this latest move, Air France-KLM positions itself more firmly in that strategic battle.
