Air France-KLM initiates proceedings to take a majority stake in SAS
Rhea-AI Summary
Air France-KLM (OTC:AFLYY) has announced plans to increase its stake in SAS from 19.9% to 60.5% through the acquisition of stakes currently held by Castlelake and Lind Invest. The transaction, expected to close in the second half of 2026, follows SAS's successful turnaround and positive results from their 2024 commercial cooperation.
The deal would make SAS a subsidiary of Air France-KLM, with the Danish State retaining its 26.4% stake. The acquisition price will be determined at closing based on SAS's financial performance metrics. SAS currently operates 138 aircraft, serves over 130 destinations, and generated revenue of €4.1 billion in 2024.
The integration aims to fully unlock synergy potential across all business areas, including loyalty programs, with Air France-KLM gaining majority board control. The transaction is subject to regulatory clearances and other conditions.
Positive
- Strategic expansion into Scandinavian market through majority control of SAS
- Potential synergies across all business areas including loyalty programs
- SAS shows improved financial and operational performance
- Access to SAS's network of 130+ destinations and 8+ million Eurobonus members
- Builds on successful existing commercial cooperation since 2024
Negative
- Transaction value not yet determined, creating uncertainty for shareholders
- Regulatory clearances required which could delay or prevent completion
- Integration costs and challenges likely in combining operations
- Closing timeline extends to second half of 2026
News Market Reaction – AFLYY
On the day this news was published, AFLYY declined 0.81%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Paris, 4 July 2025
Air France-KLM initiates proceedings to take a majority stake in SAS
- Air France-KLM intends to increase its stake in SAS’s share capital, from
19.9% currently to60.5% , via a full acquisition of the stakes held by Castlelake and Lind Invest. - This contemplated transaction reflects the successful turnaround of SAS and the positive results generated by the commercial cooperation initiated in 2024. It would allow Air France-KLM and SAS to fully unlock their synergy potential, confirm the Group’s expansion in the Scandinavian market, and create additional potential for value delivery to shareholders.
- Subject to the obtaining of all the necessary regulatory clearances and satisfaction of all conditions precedents, the ambition is to close in the second half of 2026.
Air France-KLM today announced that it will initiate proceedings to take a majority stake in SAS. The Group currently holds a
Provided all the necessary conditions are met, Air France-KLM would fully acquire the stakes held by Castlelake and Lind Invest, bringing its own stake to
The value of Air France-KLM’s contemplated investment in SAS would be determined at closing, based on SAS’s latest financial performance – including EBITDA and Net Debt. This transaction would be in line with the Group’s medium-term financial outlook.
Subject to the obtaining of all the necessary regulatory clearances and satisfaction of all conditions precedents, the ambition is to close in the second half of 2026.
The acquisition of this majority stake would give Air France-KLM control of SAS, which would become a subsidiary of the Air France-KLM Group. This new step would allow Air France-KLM and SAS to fully unlock their synergy potential via a comprehensive integration in all areas of business, including loyalty, and would extend beyond commercial activities. The Group would hold the majority of seats on the airline’s Board of Directors.
Air France-KLM’s interest in pursuing this transaction is driven by the significant improvement of SAS’s financial and operational performance, the success of the current commercial cooperation, as well as the Group’s confidence in the Scandinavian carrier’s long-term potential.
“We are excited by the prospect of fully welcoming SAS into the Air France-KLM family”, said Benjamin Smith, CEO of Air France-KLM. “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. This operation would benefit our customers and all Scandinavians who would enjoy enhanced connectivity, as well as the SAS teams whose dedication has been key to restore their airline to its rightful place. They would join a group of airlines united by a shared commitment to excellence and a more sustainable future for air transport. We look forward to this new chapter in our shared journey.”
Investor Relations
Michiel Klinkers Marouane Mami
michiel.klinkers@airfranceklm.com marouane.mami@airfranceklm.com
Website : www.airfranceklm.com
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The presentation is available at www.airfranceklm.com, in the section “other publications” on July 4, 2025, from 7:00 am CET.
A conference call hosted by Mr. Smith (CEO) and Mr. Zaat (CFO) will be held on July 4, 2025, at 09.00 am CET.
To connect to the webcast, please use below link: https://channel.royalcast.com/landingpage/airfranceklm/20250704_1/
Appendix - key facts about SAS, June 2025:
| Aircraft in service | 138 |
| Destinations served | >130 |
| Passengers carried | >25 Mn (2024) |
| Cargo carried | 60,000 tons (2024) |
| Eurobonus members | >8 Mn |
| Employees | 10,500 |
| Revenue | |
| Current shareholding structure | Castlelake ( Danish State ( Air France-KLM ( Lind Invest ( Others (13, |
| Alliance | Skyteam (since September 2024) |
Attachment
FAQ
What stake will Air France-KLM (AFLYY) acquire in SAS?
When will Air France-KLM complete the SAS acquisition?
How much will Air France-KLM pay for the SAS stake?
What is SAS's current revenue and operational scale?
Will the Danish State maintain its stake in SAS after the acquisition?
How will this acquisition affect SAS's alliance membership?
