On 4 July 2025, Air France-KLM announced that it had launched the process to acquire a majority shareholding in SAS, the flag carrier of Scandinavia. The group aims to raise its stake to 60.5% by purchasing the holdings currently owned by Castlelake LP and Lind Invest. The final purchase amount will depend on SAS’s financial performance at the time the agreement is concluded. The Danish government, which currently holds 26.4% of the airline’s capital, is expected to retain its stake and its seats on the board of directors.
This development opens a new chapter in the ongoing concentration of the European airline industry, increasingly dominated by a handful of major players. The move by the Franco-Dutch group is a direct challenge to Lufthansa and IAG, the group that includes British Airways, Iberia, Aer Lingus, Vueling and Level. Air France-KLM already owns 19.9% of SAS, a stake it acquired in 2023 for 144.5 million US dollars. That investment was made as SAS was undergoing a restructuring process under the protection of Chapter 11 of US bankruptcy law. The agreement at the time already included the option to take control of the airline within two years under certain conditions.
Improved operating and financial conditions at the Nordic carrier have now convinced Air France-KLM to take the next step. For SAS, a closer integration with a major international group is seen as a positive move, offering access to a broader global network and greater economies of scale. The Scandinavian airline currently operates a fleet of 138 aircraft and serves more than 130 destinations. Gaining control of SAS would give Air France-KLM a significant foothold in the Northern European market, particularly in Denmark, Sweden and Norway.
The European air transport landscape is increasingly consolidating around three major groups: Air France-KLM, Lufthansa and IAG. Some national carriers such as TAP, Finnair and LOT remain independent, but the pressures of the market and the need for scale may soon shift the balance. For instance, the Portuguese government has long been seeking a buyer for TAP.
