Air France-KLM Now Set to Take Control with Majority Stake in SAS, Boosting Airline Power in Scandinavia and Europe: Key Insights You Need To Know

Published on July 4, 2025

In an effort to deepen its dominance of the European airline market further, Air France-KLM announced on Friday that it aims to increase its control over Scandinavian airline SAS to 60.5%. This acquisition will give the French carrier group increased leverage with which to challenge foreign competitors and clear the way towards closer industry collaboration with SAS.

Air France-KLM currently holds a 19.9% stake in SAS, and through the latest purchase, it will acquire the stakes held by Castlelake and Lind Invest, making the acquisition subject to regulatory approvals. The deal is expected to be finalized in the second half of 2026. While the final investment value will depend on SAS’s financial performance at the time of closing, including its EBITDA and net debt, Air France-KLM sees this as a key opportunity to expand its footprint in the Scandinavian market.

The Strategic Significance of the Acquisition

This acquisition marks a significant moment for Air France-KLM, which has long been looking to strengthen its position in Sweden, Denmark, and Norway. With the acquisition, Air France-KLM will increase its control over SAS and could potentially further benefit from its integration into the SkyTeam alliance, a global network that includes major airlines around the world. The move is a response to Europe’s highly fragmented airline industry and reflects the growing trend of consolidation in the sector.

Air France-KLM’s CEO, Ben Smith, mentioned in a statement, “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.” The acquisition is part of a broader effort within the European airline industry to compete with major rivals from the U.S. and the Middle East.

SAS’s Recovery and Performance

SAS, which recently emerged from Chapter 11 bankruptcy protection in August 2024, has been on a path of recovery in recent years. In 2023, the airline generated revenue of 4.1 billion euros (approximately $4.8 billion) and carried more than 25 million passengers. The carrier, which operates a fleet of 138 aircraft, has seen its financial performance improve significantly, meeting important milestones that have paved the way for further growth under Air France-KLM’s guidance.

The announcement of the acquisition comes as SAS looks to invest further in its fleet and network, continuing its commitment to expanding its reach in the European and international markets. SAS CEO Anko van der Werff described the deal as a “defining moment” that would allow SAS to benefit from the stability and support of one of the world’s leading airline groups. He emphasized that this move would create a stronger airline capable of delivering greater value to customers and employees alike.

The Growing Trend of Airline Consolidation

The Air France-KLM-SAS deal is not an isolated occurrence in Europe’s airline industry. Executives have called for more consolidation in the sector, as many European carriers are struggling to compete with the might of U.S. carriers like American Airlines and Delta Air Lines, as well as the rising power of Middle Eastern carriers like Emirates and Qatar Airways.

Earlier this year, Lufthansa, another major European airline, took control of a 41% stake in ITA Airways, Italy’s national carrier. Additionally, the Portuguese government has announced plans to privatize its national airline, TAP Portugal. Lufthansa has also been in discussions to acquire a stake in the Spanish carrier Air Europa, further indicating the trend of consolidation across Europe’s airline market.

These deals are all aimed at building larger, more competitive airline groups that can better withstand global challenges. Air France-KLM’s move to acquire a controlling stake in SAS aligns with this strategy and reflects a broader industry shift toward collaboration and strategic mergers.

The Impact of the Deal on Air France-KLM and SAS

For Air France-KLM, acquiring a majority stake in SAS will provide several advantages, including increased market share and improved access to the Scandinavian market, which has seen consistent demand for air travel in recent years. The two airlines have already been working together commercially since summer 2024, and this acquisition would deepen their cooperation, allowing them to streamline operations and improve customer service across their networks.

SAS, meanwhile, stands to gain greater stability and the full backing of one of Europe’s largest airline groups. The acquisition will provide the airline with more resources to invest in expanding its fleet and improving its offerings to customers. The deal also positions SAS to better compete with other major European carriers, particularly as demand for air travel in the region continues to grow.

SAS will continue to operate with its Danish state stake of 26.4%, retaining its seats on the board of directors. The increased stake by Air France-KLM will give the French group control of the majority of the seats on the board, allowing them to guide the strategic direction of the airline going forward.

Conclusion

Most of the purchase of SAS by Air France-KLM is significant as it highlights the consolidation of the fragmented market of airlines in Europe. By increasing its ownership of SAS, Air France-KLM becomes a more powerful player in the global market of airlines. The purchase is the result of successful restructuring of SAS and will fortify the presence of the airline group in Scandinavia as well as deliver more value to customers and shareholders alike.

With the market for European airlines constantly evolving, the Air France-KLM-SAS cooperation opens up the way towards the new era of cooperation and industry development, as the two airlines hold their own against the growing presence of airlines from the United States and the region of the Middle East.