Airline holding company Air France-KLM (Euronext Paris:AF) said on Friday that it has initiated proceedings to increase its ownership in Scandinavian airline SAS AB from 19.9% to 60.5% by acquiring shares held by Castlelake and Lind Invest.

This proposed transaction follows SAS's financial and operational turnaround and the success of the commercial cooperation launched in 2024, including codeshare and interline agreements and SAS's entry into the SkyTeam alliance.

Air France-KLM aims to close the deal in the second half of 2026, subject to regulatory approval and other conditions.

Post-transaction, SAS would become a subsidiary of Air France-KLM, enabling full integration across operations, loyalty programs, and governance, with the airline group assuming board control. The Danish State would retain its 26.4% stake in SAS and maintain its board representation.

The investment value will be determined at closing, based on SAS's latest financial metrics, including EBITDA and net debt.

Air France-KLM views this move as aligned with its medium-term financial outlook and sees strategic value in expanding its footprint in the Scandinavian market.

The group expects the acquisition to unlock synergies and enhance value delivery to shareholders while improving connectivity for Scandinavian customers.