Air France-KLM to Take Majority Stake in Scandinavian Airlines (SAS)

On July 4, 2025, Air France-KLM announced its strategic move to increase its stake in Scandinavian Airlines (SAS), aiming to become the majority shareholder. This decision marks a significant step in the consolidation of the European aviation sector.

Background and Strategic Intent

Air France-KLM, a leading air transportation service provider, has been a part-owner of SAS since two years ago, during a period when the airline was facing considerable challenges. The French-Dutch airline group has now decided to expand its involvement by increasing its share from 19.9% to 60.5%. This move is part of a broader strategy to strengthen its position in the competitive airline industry.

Financial and Market Implications

The decision to acquire a majority stake in SAS is expected to enhance Air France-KLM’s market presence in Scandinavia and beyond. The transaction is seen as a strategic expansion that could potentially integrate SAS as a new subsidiary under the Air France-KLM umbrella. This consolidation is anticipated to provide synergies and operational efficiencies, benefiting both airlines.

Market Reaction

Following the announcement, Air France-KLM’s stock was closely watched by investors. As of July 2, 2025, the company’s close price was 9.902 EUR, with a 52-week high of 12.16 EUR and a low of 6.9 EUR. The market’s response to the acquisition news will likely influence the stock’s performance in the coming days.

Statements from Leadership

Benjamin Smith, CEO of Air France-KLM, highlighted the successful restructuring of SAS as a key factor in this decision. He emphasized that the acquisition aligns with Air France-KLM’s long-term strategic goals and will enhance its competitive edge in the global aviation market.

Conclusion

The acquisition of a majority stake in SAS by Air France-KLM represents a significant development in the aviation industry, reflecting ongoing consolidation trends. This move is expected to bolster Air France-KLM’s market position and operational capabilities, setting the stage for future growth and expansion in the European and global markets.