Air France-KLM (AF) Investor Update summary

Strategic acquisition and transaction overview

• Stake in SAS to increase from 19.9% to 60.5% by acquiring Castlelake and Lind Invest shares, with regulatory approval targeted for late 2026.

• SAS will become a subsidiary, with board majority and consolidation expected in H2 2026.

• Danish State retains a 26–26.4% stake and board representation, remaining a key strategic partner.

• No current plans or options to acquire the Danish State's shares; their involvement remains strategic.

• Investment value and purchase price to be set at closing, based on SAS’s latest financials and industry multiples.

SAS business profile and recent performance

• SAS operates 130–138 aircraft, serves over 130 destinations, and carried over 25 million passengers in 2024.

• FY2024 revenues reached €4.1bn, with more than 8 million loyalty members and 10,500 employees.

• Operates a dense Nordic network, including 35 destinations, 91 medium-haul, and 13 long-haul routes.

• Achieved structural turnaround post-Chapter 11, with significant financial and operational improvements.

• Recognized as the most punctual airline globally in April and May 2025.

Synergy opportunities and operational benefits

• Integration expected to unlock substantial revenue and cost synergies, including enhanced loyalty value and optimized codeshare agreements.

• Loyalty programs to combine, creating a base of over 35 million members and enhancing commercial partnerships.

• Commercial cooperation already generated €120 million in annualized revenues, with further upside expected.

• Cost synergies anticipated from unified sales, IT, distribution, shared service centers, and economies of scale.

• Integration into the North Atlantic joint venture with Delta and Virgin Atlantic planned post-merger control approval.