After Lufthansa's acquisition of the crisis-hit airline ITA Airways, aviation analyst Jacob Pedersen believes SAS could be next.  

SAS shares have been under a lot of pressure recently. The stock has lost 15 percent during 2023, while the three-year performance shows a fall of over 80 percent. The company is in the midst of a tough restructuring.

Earlier this year, the company stated that due to its ongoing reconstruction and fundraising, existing shareholders expect something significant value remains to them after the process has been completed. 

Furthermore, the airline risks having to repay several billion in coronavirus support payments after the competitor Ryanair has protested and won its case at the EU's Court of Justice. 

Monday's rise of more than 10 per cent is thus a small consolation for shareholders. 

The German Lufthansa Group has been active on the buying front, with Swiss, Austrian and Brussels Airlines, as well as ITA Airways, being the latest acquisitions. In an article in SvD published on Friday evening after the stock market closed, aviation analyst Jacob Pedersen from Danish bank Sydbank stated that SAS could be next in line. 

But before a potential he believes the acquisition will see the American private equity firm, Apollo Global Management, first become a major shareholder in SAS. His reasoning is that the company is already involved in channelling funds to ensure the airline can get through its restructuring.

”Apollo is not a long-term investor. I believe they will sell their stake in SAS within three to five years and new investors could come in. Lufthansa would then be at the top of my list,” says Jacob Pedersen, to SvD.

In practical terms, it would mean SAS joining Lufthansa Group as another brand. 

”SAS would fit perfectly into the Lufthansa Group's business model,” says Jacob Pedersen.

On Thursday, SAS will release its interim report for the second quarter of 2023. 

Source: DI.SE