Shares in SAS tumbled by 95% after the airline revealed its financial restructuring plans to prevent bankruptcy. The move brings on board new investors, including US investment firm Castlelake and Air France-KLM. These investors will become major shareholders alongside the Danish state. SAS filed for bankruptcy protection in the US in mid-2022 due to high costs and reduced demand caused by the pandemic. As part of the restructuring, SAS stock will be delisted from the Stockholm, Copenhagen, and Oslo exchanges. Air France-KLM also aims to strengthen its presence in the Nordic region by integrating SAS flights into its own airlines at hubs in Amsterdam and Paris. Although SAS shares have been in decline in recent years, they still traded at a residual value, potentially due to possible legal challenges or investor overconfidence, according to Sydbank analyst Jacob Pedersen. The remaining equity of SAS is likely to be distributed among creditors. At the time of the announcement, shares in SAS were trading down 83%. The new stakeholders will be Castlelake with a 32% stake, Air France-KLM with a 20% stake, Danish investor Lind Invest with an 8.6% stake, and the Danish state with approximately 26% ownership. The market value of the company has reached a record low of SEK 0.05 per share. The delisting from exchanges raises concerns about the possible loss for shareholders. The move is part of Air France-KLM’s strategy to actively participate in the consolidation of the European aviation industry. The potential integration of SAS flights into Air France-KLM’s operations will strengthen both airline groups in the highly competitive Nordic market. Analysts suggest that the restructuring of SAS could lead to further consolidation in the sector as struggling airlines seek collaboration and support to overcome financial challenges and improve operational efficiencies.