Air France-KLM said it will raise its holding in Scandinavian Airlines to 60.5%, buying the shares owned by investment firms Castlelake and Lind Invest and turning the 77-year-old carrier into a controlled subsidiary. The Franco-Dutch group currently owns 19.9% of SAS, a stake it took last year after the Nordic airline exited U.S. Chapter 11 protection. The transaction is subject to regulatory clearances and is expected to close in the second half of 2026. Air France-KLM did not disclose a price, saying the consideration will be set at completion based on SAS’s earnings and net debt. Chief Financial Officer Steven Zaat told analysts the deal could generate “three-digit million” euros in synergies and will be financed with existing cash or a conventional bond issue. Once completed, Air France-KLM will hold the majority of board seats, while Denmark will retain its 26.4% ownership and board representation. Management said deeper integration of fleets, loyalty programmes and networks will bolster the group’s competitive standing against European rivals Lufthansa and IAG, and advance the sector’s broader consolidation drive.