Air France-KLM plans to increase its stake in Scandinavian airline SAS to 60.5%, the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals.

Air France–KLM will initiate proceedings to take a majority stake in SAS, marking a strategically important chapter for the Scandinavian carrier.

Air France-KLM will initiate the process of raising its minority stake in Scandinavian airline SAS AB to 60.5%, as it looks to extend consolidation in the European aviation industry and better compete with rivals Deutsche Lufthansa AG and British Airways owner IAG SA.