Air France and KLM Plan To Acquire Majority Stake in SAS, Merge It Into Air France-KLM Group

The Air France-KLM Group already owns a 19.9% share in Scandinavian Airlines (commonly known as SAS). Now, the group plans to acquire a majority stake in SAS.

While the deal was only announced today, it would eventually lead to SAS becoming part of the Air France-KLM Group — and airline groups are becoming all the rage in Europe, so this would help this SkyTeam group compete with rivals in Star Alliance.

Here’s what we know so far about the new plans for control of SAS.

A Quick Recap: How We Got Here

On October 2, 2023, we learned that SAS would leave Star Alliance and join the SkyTeam alliance. That move came after Air France-KLM Group purchased a 19.9% share in SAS, which was struggling financially at the time.

This was groundbreaking news at the time, as SAS was a founding member of Star Alliance, and we’d never seen an alliance defection like this previously. In the wake of this shift, SAS announced new routes and started flying to hubs served by its new partners, including Delta in the U.S.

Air France-KLM To Acquire Majority Stake in SAS

Now, it seems that Air France and KLM are impressed by SAS’ turnaround “and the positive results generated by the commercial cooperation initiated in 2024,” according to a press release.

The plan is for Air France-KLM to purchase the stakes in SAS held by Castlelake and Lind Invest, growing from a 19.9% share in SAS to 60.5%. That would make Air France-KLM the controlling partner.

The Danish government holds a 26.4% stake in SAS and has seats on the airline’s Board of Directors. Neither of those aspects will change under this deal.

If approved by government regulators, this proposed deal will close in the second half of 2026. A closing price will be determined at that time, based on SAS’ financial performance at the time.

What This Means for Travelers

Today’s press release contains a lot of corporate buzzwords, but it also says that Air France-KLM Group sees long-term potential in the Scandinavian market. The group has been impressed by SAS’ recent financial performance.

By controlling a majority stake in SAS, the long-term goal is to merge SAS into the Air France-KLM Group.

“We are excited by the prospect of fully welcoming SAS into the Air France-KLM family. 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.”

Benjamin Smith, CEO of Air France-KLM

This would likely mean SAS merging into the Flying Blue rewards program. If that happens, it would mean the end of SAS’ own EuroBonus program.

For a recent, similar example, we can follow ITA Airways’ story. The Lufthansa Group — a major European player and part of the Star Alliance — purchased Italy’s struggling ITA and is now merging it into the Miles & More program. That will bring about the end of ITA’s own Volare loyalty program.

We’ll know more as the deal moves through the government approval process.

Final Thoughts

Airline groups are growing and consolidating in Europe. The latest news on this front is Air France-KLM moving to purchase a controlling stake in Scandinavian Airlines. If that happens, SAS would merge into the Air France-KLM Group and would likely join the Flying Blue loyalty program.

If approved, a price will be set when the deal closes in the second half of 2026.