Southwest Airlines and San Antonio International Airport have finally buried the hatchet, announcing Thursday that they have reached a settlement to end a yearslong fight over gate assignments and the city’s Terminal C expansion. The deal guarantees Southwest access to at least six gates and wraps up lingering billing and lease disputes tied to the project.
Under the agreement, Southwest signed a new Airline Use and Lease Agreement (AULA) that guarantees the carrier access to at least six gates across the airport: three in the new Terminal C and three in the renovated Terminal B once construction is complete. The settlement also resolves airline rates and charges dating back to October 2024 and closes out litigation that had been active in federal court and before the Federal Aviation Administration, according to News 4 San Antonio.
Settlement Ends Federal Lawsuit Over Gate Assignments
The dispute dates back to 2024, when Southwest sued the City of San Antonio and Aviation Director Jesús Saenz, arguing that officials misled the airline about promised gates in the new terminal. Court filings and an order posted on FindLaw show that Southwest challenged the city’s gating criteria and pursued both state and federal claims in the U.S. District Court for the Western District of Texas.
What Terminal C Will Deliver
Terminal C is the showpiece of the airport’s Terminal Development Program and is expected to add roughly 17 gates. Airport officials say the roughly $1.7 billion project remains on schedule for a 2028 opening. The construction has already reshaped curbside and parking patterns at the airport, which helps explain why control over future gate assignments turned into such a hot-button issue, according to the San Antonio Report.
What the Deal Means for Flyers and Southwest
Southwest is the airport’s largest carrier, handling roughly 37% of SAT passengers, and had been operating on a month-to-month basis while holding out on signing the long-term lease. That stance left the airline paying premium fees and missing out on revenue sharing, the San Antonio Express-News reported. With defined gate assignments secured, airport planners say they can now move forward with major renovations and long-range scheduling that depend on knowing which carriers occupy each terminal.
Joint Statement From the Parties
In a joint statement, Southwest and airport officials said they are “looking forward to continuing their partnership and supporting the airport’s long-term growth.” The announcement did not disclose additional financial details beyond the new lease framework and gate guarantees, according to News 4 San Antonio.
Legal Implications
Court records show that Southwest argued the city’s gating strategy violated federal law by relying on subjective factors to award prime terminal space, according to documents posted on FindLaw. The airline also filed a complaint with the FAA seeking review of airport grants and agreements, a move detailed in local reporting by the San Antonio Express-News, and those regulatory questions now appear to be resolved by the settlement.
What’s Next
Airport officials say construction will continue and that Terminal C remains on track to open in 2028, with plans to renovate Terminal A once the new facility is operational, according to the San Antonio Report. Travelers can expect gate and terminal changes to roll out in phases as construction milestones are hit and airlines settle into their assigned spaces.
