Air France-KLM announced Friday that it is to buy a majority stake in SAS Scandinavian Airlines. The Franco-Dutch group already owns 19.9% of SAS’s share capital – a holding it formally secured last year. The proposed transaction will see this rise to 60.5% through the acquisition of existing stakes held by asset management firms Castlelake and Lind Invest.
In a statement, AF-KLM said the development “reflects the successful turnaround of SAS and the positive results generated by the commercial cooperation initiated in 2024.”
It added that the deal will allow both parties to “fully unlock their synergy potential, confirm the Group’s expansion in the Scandinavian market, and create additional potential for value delivery to shareholders.”
AF-KLM said these synergies would be the result of a “comprehensive integration in all areas of business,” and “extend beyond commercial activities.” SAS would ultimately become a subsidiary of the Air France-KLM Group, which also includes low-cost carrier Transavia.
What are the CEOs Saying?
Speaking on Friday morning, Ben Smith, CEO of Air France-KLM said: “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.”
Anko van der Werff, president & CEO of SAS added: “Air France–KLM becoming the majority owner would mark a defining moment for SAS and a strong signal of confidence in the direction we’re heading. It brings not just stability but will also allow for deeper industrial integration and the full backing of one of the world’s leading airline groups.”
Van der Werff also took to LinkedIn for a more personal take on the proposed deal. Perhaps preempting concern about the new ownership structure, he said: “Make no mistake, SAS will remain proudly Scandinavian at heart, in look and in feel.”
Under the deal, the Danish State will retain its 26.4% stake in SAS and its board seats. The transaction remains subject to regulatory approval. AF-KLM is aiming to close proceedings in the second half of 2026.
How Did We Get Here?
Despite holding less than a fifth of SAS shares for just a year, AF-KLM has already made its mark. The airlines have ramped up cooperation in the form of extended codeshare and interline agreements. The Scandinavian carrier also defected from Star Alliance – where it was a founding member – to rival SkyTeam, home to Air France and KLM.
The August 2024 deal saw Air France-KLM join the consortium in a nearly $1.2 billion contract. The purchase formed a key part of SAS’s financial restructuring which helped salvage the Scandinavian carrier from extreme financial distress.
SAS filed for Chapter 11 bankruptcy protection in July 2022, making good on earlier threats from airline management that it would do so if it was unable to secure concessions from key stakeholders. The company completed this process last year.
The terms of the consortium deal allowed the company to increase its shareholding to a controlling position after at least two years. Smith previously told Skift that the SAS deal is a “low-risk way of participating in consolidation.”
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