Summary
- Southwest Airlines refused to sign the new lease agreement because it did not receive the gates it wanted, thereby risking higher operational costs.
- The proposed lease states Southwest will have exclusive access to existing Terminal A, but the airline wants gates in the new, upcoming terminal.
- San Antonio airport, in recent times, has experienced growing traffic and more international connectivity.
Southwest Airlines has stated that it will not be signing the new lease agreement with San Antonio Airport because the carrier was denied the gates it wanted, and the allocations under the proposed agreement will reportedly stifle the airline’s future commercial growth at the airport.
While the airline will continue operating at the airport, if the agreement is not signed by the end of the month, the airline will be considered a “non-signatory” airline, driving up the carrier’s operational costs.
Refusing to sign
After two years of negotiating with airlines, the City Council of San Antonio has approved the lease agreement for San Antonio International Airport (SAT), which is billions in aviation revenue in the next 15 years. However, the airport’s largest partner, 
Southwest Airlines
, has refused to sign the new lease agreement as it did not get the airport gates it was hoping for.
While the airline currently has six reserved gates at SAT’s Terminal A, according to the San Antonio Report, Southwest was expecting to be allocated 10 gates at the airport’s upcoming terminal.
Photo: Vincenzo Pace | Simple Flying
Under the current proposal, the Airport’s 1980s-era Terminal A will undergo renovation, with the number of gates reduced from 17 to 10, and Southwest will have exclusive access to the whole terminal.
Southwest, however, wants spaces in the new terminal as competing carriers such as 
Delta Air Lines
and 
American Airlines
have been allocated gates in the new terminal along with spaces to build new private lounges for their respective customers.
Not enough investment
From the $1.6 billion fund as part of the Terminal Development program, $200 million has been allocated to renovate Terminal A, which will include improvements to the roof and infrastructure, along with internal upgrades to the electric and baggage systems. Additionally, the terminal’s security checkpoint will be upgraded from a separately budgeted fund.
Southwest, on the other hand, states that this would not be enough and that Terminal A’s renovation budget will need to be increased by at least another $150 million.
Photo: University of College | Shutterstock
The city officials, however, stated that if the allocated $200 million does not cover the necessary renovations, there are processes that would allow this number to be increased further down the road. However, at this stage, it would not be possible or fair to other carriers as it could jeopardize the progress made over the past two years of negotiations.
The two parties are reportedly working to find a solution that would help Southwest sign the new lease agreement and they do have time till the end of the month.
A growing airport
The San Antonio Airport has been experiencing significant growth recently, with growing passenger numbers. Earlier this year, the airport noted record passenger numbers of over 900,000 in April and a 7% growth compared to 2023. Not just passenger numbers, though, the airport’s connections to international destinations have also increased in recent times.
While carriers such as Delta and Southwest made service resumption, increases frequencies, and launched new routes, the airport also saw carriers such as Viva Aerobus
launch services to a fifth Mexican destination from SAT.
Photo: Dorengo5 | Shutterstock
Southwest Airlines has contributed to the increase in traffic and services seen at San Antonio airport. The airline has the largest market share, 37%, and last year, it was accountable for well over three million passengers flying to and from the airport.
Thus, if the airline does not sign the new lease agreement by the end of the month, Southwest Airlines will still continue to operate out of SAT but will be a non-signatory airline and will have to pay an additional $6 million in airport usage fees per year.
Simple Flying has reached out to the airline to know how these additional operational charges will affect passenger fares on services to and from SAT. Any response received will be updated in this article.