Air France‑KLM Sets Its Sights on SAS: Majority Ownership in Sight
France‑based Air France‑KLM will boost its stake in SAS from 19.9% to 60.5% by acquiring shares from Castlelake and Lind Invest.
Timing and Financials:
- Expected to close in late 2026, following regulatory approvals.
- Acquisition price hinges on SAS’s financial metrics at closing—focused on EBITDA and net debt.
- Anticipated efficiencies are in the “three‑digit million €” range annually.
Strategic Rationale:
- Reinforces AF‑KLM’s reach in Scandinavia, adding SAS as a core subsidiary rather than a partner.
- Builds on previous cooperation: SkyTeam integration since September 2024, new code‑share routes, and joint loyalty benefits.
- Continues European consolidation trend following moves by Lufthansa and others.
Key Insights:
- SAS recently rebounded: €4.1 bn revenue in 2023 and fully restructured after filing bankruptcy in 2022.
- AF‑KLM expects to gain board control and operational influence, with the Danish state keeping a minority position.
What to Watch:
- Approved? Regulatory clearance could take months and reshape airline alliances in Europe.
- Integration: aligning loyalty systems, fleet deployment, and brand strategy.
- Competition: Will rivals like Lufthansa or IAG respond with counter-deals?
Final take:
If successful, the deal strengthens AF‑KLM’s pan-European network and helps SAS anchor itself as a leading Nordic carrier under a strong airline group. It may also shift competitive dynamics across alliances and major hubs.
