San Antonio Airport Issued Bonds for Terminal C
The San Antonio International Airport secured $866.44 million in July 2026 to fund its ongoing $1.7 billion expansion project.
Updated on Oct. 14, 2026 in Air Travel
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In July 2026, the San Antonio International Airport issued $866.44 million in revenue and refunding bonds to finance the construction of its new Terminal C. Investors showed strong interest in the debt, submitting approximately $3.9 billion in total orders.
Why it matters
The bond issuance provides essential capital for the terminal project, which is critical for meeting the airport's long-term growth goal of 14.5 million annual passengers by 2040. Investor confidence was bolstered by a May 2026 legal settlement with Southwest Airlines, which reduced project uncertainty.
The airport issued $866.44 million in bonds to support the $1.7 billion construction of Terminal C. The offering attracted 61 new institutional investors out of 78 total participants.
The players
San Antonio International Airport
This facility serves the San Antonio region and is currently undergoing significant capacity upgrades to accommodate projected passenger growth.
Southwest Airlines
The major carrier holds a significant market share in San Antonio and recently resolved legal disputes regarding its terminal gate usage.
City of San Antonio
The local municipal government oversees the airport's expansion planning and negotiated the recent lease agreements with carriers.
The details
The bond funding supports the development of an 850,000-square-foot facility, which is currently part of a broader expansion effort that began with a groundbreaking in December 2024. As part of the May 2026 settlement, Southwest Airlines, which holds a 37% market share, secured three gates in the new Terminal C and three in Terminal B.
Timeline
December 2024: Groundbreaking occurred for new Terminal C.
March 2026: Ground Load Facility for Terminal A completed.
May 2026: City and Southwest Airlines reached settlement.
July 2026: Airport issued $866.44 million in bonds.
Q2 2028: Terminal C is scheduled to open.
Travel Outlook
The city's approval of a revised Airline Use and Lease Agreement follows a pattern of municipal airports using formal settlements to guarantee carrier participation before financing large capital projects. This approach helps stabilize long-term revenue projections amid fluctuating annual passenger volumes.
Travelers should monitor construction progress, as the ongoing expansion may eventually shift gate assignments or transit paths through the airport terminals. The project remains on track for a 2028 opening, which is expected to accommodate the city's projected rise in passenger demand.
The takeaway
Large-scale airport construction is often dependent on securing long-term agreements with dominant carriers to ensure investor confidence. Residents and travelers should view the bond issuance as a sign of institutional stability for the airport's future infrastructure.
What happens next
The airport will hold a topping-off ceremony for the Terminal C structure before the end of the fall 2026 season.
Further reading
For more on how facility expansions impact local transit, see Air Travel.
Source note: This article includes information reported by Simple Flying.
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