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A federal judge has dismissed Southwest Airlines’ lawsuit against the City of San Antonio and San Antonio International Airport (SAT) over the allocation of gates in the airport’s upcoming Terminal C. The case was closed “with prejudice,” which prevents Southwest from appealing the decision.
The dispute centers on the $1.7 billion Terminal C project, which is scheduled for completion by 2028. According to reports, SAT does not plan to assign any gates in the new terminal to Southwest Airlines, instead basing gate allocations on airline traffic, passenger demographics, and premium services provided by carriers. Southwest is known as a low-cost carrier and does not offer VIP cabins or airport lounges.
Southwest’s legal team argued that city officials misled them during lease negotiations about planned improvements at SAT. They described this as a “bait and switch” tactic. As a result of these developments, all current Southwest operations will remain in Terminal A.
