The San Antonio International Airport (SAT) has taken a significant step forward in its expansion plans with the issuance of the 2026 Airport Revenue and Refunding Bonds. This move, announced on Tuesday, marks the largest bond issue in the city’s history and is set to support the construction of a new 18-gate terminal, expected to be completed by 2028.
The $866.44 million bond sale generated substantial interest, with $3.9 billion in orders submitted by 78 institutional investors, including about 61 new investors. This funding is part of a broader $2.5 billion financing package that includes grants from the Federal Aviation Administration, infrastructure bill funding, and airport revenue and fees.
Terminal C: A Cornerstone of Future Growth
The new terminal, known as Terminal C, is a critical component of SAT’s strategic development plan. Projections indicate that annual passenger numbers will rise from approximately 10 million in 2019 to 14.5 million by 2040. The terminal’s construction is progressing steadily, with 70% of the steel supports and wood beams already in place. The first set of escalators has been installed, and elevators are scheduled to be put in place in August.
Work on the terminal’s ramp, or apron, has recently begun, and a topping-off ceremony is anticipated in the fall. The building’s exterior shell is expected to be sealed in early 2027, followed by interior work. The terminal’s design and construction are on track, with minimal delays despite recent weather challenges.
Ground Transportation and Infrastructure Upgrades
In addition to the new terminal, SAT is enhancing its ground transportation infrastructure. The demolition of three existing buildings has been completed to make way for a new ground transportation center. This center, designed by San Antonio-based architecture firm MarmonMok, will increase the airport’s on-site parking spaces by 2,500 and is expected to be operational by 2028.
Unique architectural elements from the former Badge & ID Building, such as the exterior travertine, terrazzo, and distinctive Y-shaped columns, will be incorporated into the new transportation center. The center’s construction began in June and is set to be completed by mid-2027.
The airport is also undertaking a four-phase project to redesign the curb-front roadways for Terminal A, with the first phase beginning in March. Improvements to roadways entering and exiting the airport at Loop 410 and Highway 281 are also planned.
Airline Agreements and Passenger Trends
In May, SAT officials and Southwest Airlines reached a settlement over the lease and use agreement for the new terminal. This deal ensures Southwest, SAT’s largest carrier based on scheduled seat capacity, guaranteed access to the new terminal. Southwest serves 23 destinations from SAT and has been a key player in the airport’s growth.
Despite a recent decrease in passenger numbers due to Spirit Airlines’ exit after filing for bankruptcy in late 2026, other carriers like American, Frontier, and Sun Country have experienced significant service increases. In May, the airport saw 900,000 passengers, an 8% decrease from the same month last year.
Assistant City Manager Jeff Coyle emphasized the importance of having all 10 signatory carriers committed to the long-term growth of the airport. The city plans to issue additional airport revenue bonds in 2027, 2028, and 2029 to support ongoing and future projects.
