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Air France-KLM is to take a majority stake in Scandinavian Airlines, as the Franco-Dutch carrier bulks up in the face of competition from low-cost and Gulf carriers.
The company said on Friday that it would lift its stake in SAS, the airline of Denmark, Sweden and Norway, from 19.9 per cent to 60.5 per cent. Financial terms of the deal were not disclosed.
It comes as air travel has recovered after the Covid-19 pandemic but also at a time when high-end European carriers face a rising threat from low-cost and non-European airlines.
Air France-KLM took an initial stake in SAS in 2023 as part of a restructuring of the then troubled carrier.
Ben Smith, chief executive of Air France-KLM, said: “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.”
Air France-KLM expects the deal to close in the second half of 2026. It will probably face scrutiny from the European Commission, which has expressed concern that airline takeovers could lead to higher fares.
