Air France-KLM has begun proceedings to take a majority stake in Scandinavian carrier SAS, the airline group announced on Friday (4 July).

The group, which already holds a 19.9 per cent stake in SAS, said it intends to increase its shareholding to 60.5 per cent by acquiring shares from Castlelake and Lind Invest. The Danish government will maintain a 26.4 per cent stake in SAS and continue to occupy board positions.

The transaction, subject to regulatory approval, is expected to close in the second half of 2026. Air France-KLM said the value of the investment would be determined at closing, based on SAS¡¯s financial results.

If approved, the transaction will result in SAS becoming a subsidiary of Air France-KLM, marking another step towards consolidation within Europe¡¯s airline industry following Lufthansa¡¯s recent acquisitions of a 41 per cent stake in ITA Airways and a 10 per cent stake in AirBaltic.?

Air France-KLM CEO Benjamin Smith, said: ¡°We are excited by the prospect of fully welcoming SAS into the Air France-KLM family¡±, which would include ¡°a comprehensive integration in all areas of business, including loyalty,¡± the group added.

Air France-KLM took an initial stake in the Stockholm-based carrier last September after SAS exited Chapter 11 bankruptcy protection in the US. The carriers have existing codeshare and interline agreements and are part of the SkyTeam alliance.

SAS president and CEO Anko van der Werff said: ¡°Air France¨CKLM?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.¡±