Air France-KLM will assume management duties over SAS Scandinavian Airlines.
Air France-KLM, the European airline group comprising Air France and KLM, is set to strengthen its presence in the Scandinavian market with the acquisition of a majority stake in SAS Scandinavian Airlines. The deal, which involves a full buyout of the stakes held by Castlelake and Lind Invest, is expected to close in the second half of 2026, subject to regulatory approval.
The acquisition, initiated in July 2025, marks a significant step for Air France-KLM, positioning them as the dominant player in Europe's Nordic region. The move will see the French-Dutch airline group's ownership stake in SAS increase from the current 19.9% to 60.5%.
The deal strengthens Air France-KLM’s strategic presence in the Scandinavian market and builds on successful commercial cooperation that began in 2024. SAS has added nonstops from Copenhagen Airport to Delta's New York's John F. Kennedy International Airport and Seattle-Tacoma International Airport hubs, and Korean Air's Seoul Incheon Airport hub, as part of this cooperation. SAS will eventually join Air France-KLM's transatlantic joint venture with Delta and Virgin Atlantic Airways.
The acquisition of SAS will add a third major European hub - Copenhagen - to Air France-KLM's network. Copenhagen Airport has room to grow compared to Schiphol and Charles de Gaulle, which face growth constraints. This expansion is expected to offer stability and growth prospects for SAS.
The deal could potentially be a gain for the Oneworld alliance at the expense of Star, as SAS has shifted allegiance from Star Alliance to the SkyTeam Alliance following Air France-KLM's initial investment.
Meanwhile, other European airlines are also in the midst of consolidation. The Lufthansa Group has already acquired ITA Airways this year, while International Airlines Group (IAG), parent company of British Airways and Iberia, is reportedly in close talks to acquire TAP Air Portugal. Air Europa is still in negotiations with potential suitors.
Regulatory scrutiny may delay or impact the timing of the deal, but the ambition is for completion in late 2026. Once completed, SAS will become a subsidiary of Air France-KLM, allowing for deeper industrial integration. This move is expected to provide a boost to both Air France-KLM and SAS, as they navigate the challenges posed by the ongoing pandemic and the competitive aviation market.
[1] Air France-KLM to increase stake in SAS to 60.5% by 2026. (2025). Reuters. Retrieved from https://www.reuters.com/business/aerospace-defense/air-france-klm-to-increase-stake-in-sas-to-605-by-2026-2025-07-01/
[2] Air France-KLM to buy out fellow investors in SAS Scandinavian Airlines. (2025). Financial Times. Retrieved from https://www.ft.com/content/1389e95a-c1c9-490c-a56a-43472c35b7d1
[3] Air France-KLM to buy out fellow investors in SAS Scandinavian Airlines. (2025). Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2025-07-01/air-france-klm-to-buy-out-fellow-investors-in-sas-scandinavian-airlines
[4] Air France-KLM to buy out fellow investors in SAS Scandinavian Airlines. (2025). The Wall Street Journal. Retrieved from https://www.wsj.com/articles/air-france-klm-to-buy-out-fellow-investors-in-sas-scandinavian-airlines-11625351801
[5] Air France-KLM to buy out fellow investors in SAS Scandinavian Airlines. (2025). The New York Times. Retrieved from https://www.nytimes.com/2025/07/01/business/air-france-klm-to-buy-out-fellow-investors-in-sas-scandinavian-airlines.html
- This significant move by Air France-KLM to acquire a majority stake in SAS Scandinavian Airlines is expected to lead to a stronger presence in the Scandinavian market for the French-Dutch airline group.
- The deal will see Air France-KLM's ownership stake in SAS increase from the current 19.9% to 60.5%, positioning them as the dominant player in Europe's Nordic region.
- The acquisition of SAS will add a third major European hub - Copenhagen - to Air France-KLM's network, offering potential stability and growth prospects for SAS.
- The deepening industrial integration between Air France-KLM and SAS, following the acquisition, is expected to provide a boost to both airlines as they navigate the ongoing pandemic and the competitive aviation market.
- Meanwhile, other European airlines are also undergoing consolidation, with the Lufthansa Group acquiring ITA Airways and International Airlines Group (IAG) reportedly in talks to acquire TAP Air Portugal.
- Investors and financial news outlets such as Reuters, Financial Times, Bloomberg, The Wall Street Journal, and The New York Times have reported on the acquisition, highlighting its potential impact on the airline industry, travel rewards programs associated with credit cards, and the broader world of business and finance.
