Judge dismisses lawsuit from southwest airlines over San Antonio airport terminal allocation

Despite the court’s ruling, Southwest Airlines said it intends to pursue further action with federal authorities. In a statement reported by Fox News, Southwest said:

"Southwest disagrees with the Court’s decision to dismiss the case and we plan to appeal… We maintain that the City of San Antonio violated numerous federal requirements while making crucial decisions about the planned new passenger terminal… The City has made false and misleading statements and is impermissibly attempting to play favorites… This malfeasance will impose grossly unreasonable charges upon Southwest and its Customers for the use of a substandard, obsolete facility.”

The original lawsuit was filed in 2024 after Southwest declined to renew its long-term lease due to concerns about being left behind in older facilities. Instead, it opted for a more expensive month-to-month lease arrangement.

The judge stated there were no new facts supporting Southwest’s claims and declined to grant any partial rulings in favor of the airline.

City officials have emphasized that Terminal C is necessary due to rapid growth at San Antonio International Airport. The new terminal will feature up to 17 domestic and international gates by mid-2028, over 850,000 square feet of space—including expanded concession areas—and club lounge facilities totaling more than 29,000 square feet. Additional features include larger gate hold rooms for passengers, improved roadway access around the airport, an indoor courtyard area inspired by San Antonio’s River Walk, and modernized customs inspection stations for international flights.

Terminal C will be larger than both existing terminals A and B combined when completed. New ground load facilities south of Terminal A are also part of the project plans.

Southwest Airlines remains one of America’s largest low-cost carriers with hubs across major U.S. airports including Baltimore/Washington International Thurgood Marshall Airport; Dallas Love Field; Denver International Airport; Harry Reid International Airport; Hartsfield-Jackson Atlanta International Airport; Houston Hobby Airport; Los Angeles International Airport; Midway International Airport; Oakland International Airport; Orlando International Airport; and Phoenix Sky Harbor International Airport.