SAN ANTONIO – Southwest Airlines and the City of San Antonio have ended their dispute regarding gate assignments at San Antonio International Airport (SAT).
In a news release Thursday, the city said the airline has signed a new agreement that will give Southwest Airlines at least six gates at the airport — three gates in the soon-to-be renovated Terminal B and three new gates at the brand new Terminal C.
The new terminal, which is worth approximately $1.2 billion, officially broke ground in December 2024 and is expected to be completed by 2028.
“Together, Southwest and SAT look forward to a continued partnership that benefits San Antonio and supports the Airport’s mission of providing travelers with an exceptional travel experience,” the entities said in a joint statement.
Southwest Airlines said it will “withdraw pending litigation” against the airport in federal court and before the Federal Aviation Administration (FAA).
Background
The airline and the city locked horns when Southwest filed a lawsuit in September 2024. Weeks before filing, the airliner communicated its frustration over terminal leases approved by City Council.
A Southwest Airlines spokesperson told TheTXLoop at the time that they disliked the newly passed items because their future commercial growth plans could be in jeopardy, adding they wouldn’t sign with the City of San Antonio if no changes were made.
The spokesperson also said the reason the airline didn’t see eye-to-eye was because they were promised by airport officials and the city that they would expand to 10 gates at the airport’s new Terminal C.
In the lawsuit filed on Sept. 26, 2024, Southwest Airlines alleged, among other claims, that the city used subjective factors when it came to assigning different airlines at SAT’s terminals.
In August 2025, a federal judge dismissed Southwest Airlines’ lawsuit against the city.
Judge Xavier Rodriguez ordered the case to be closed, granting the city’s motion to dismiss the lawsuit.
The judge determined that Southwest Airlines did not present a strong enough claim to proceed with the lawsuit.
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