Thousands of additional vehicle parking spaces could become available at San Antonio International Airport sooner than planned.
The airport’s parking shortage, a persistent problem since air travel resumed after the pandemic, has prompted officials to accelerate construction of a planned Ground Transportation Center (GTC) at San Antonio International Airport (SAT).
City airport director Jesus Saenz told council members at the city council’s first budget work session this week that requests for proposals for the project would be issued later this year and construction is expected to begin in 2025.
The existing garage is often at full capacity, Saenz told council members.
“I’m sure some of you have had calls or complaints about parking,” he said. “We’ve closed (the garage) every day this summer, and we need to do something about it, and we’re doing that as soon as possible.”
Currently, San Antonio Airport has more than 9,000 parking spaces in parking garages and parking lots, many of which are at full capacity during peak travel times. Approximately 600 spaces will be reserved for A Valet parking.
The original ground transportation center expansion project, with 500 additional parking spaces as well as shuttle, taxi and ride-share services, was initially one of many “enabling” projects in the 20-year, $2.5 billion strategic airport plan approved by the City Council in late 2021. But under the new proposal, the transportation center would no longer be built as part of the terminal development program.
The parking garage could now be built in phases, with an estimated 2,000 spaces being created at a site west of the existing parking garage, Saenz said. Original plans called for the GTC to be located directly across from the departure lanes of the new terminal being built next to Terminal B.
Record-breaking SAT trip
The move to build more parking spaces came after the airport experienced its busiest month in its history. Over 1 million passengers flew through SAT in July and the airport is on track to reach 11.6 million by year-end.
“If we continue at this growth rate, we could fall into the category of major hub airports,” Saenz said.
The airport has handed over the management of its parking areas to the private operator SP Plus Corporation, which will manage all parking spaces at the airport and the parking garages, including shuttle and valet services. A luggage storage service will also be offered shortly.
While San Antonio is home to over two million people, Saenz says the number of airport users in the region is nearly six million. These people often drive to the airport and expect to find parking there.
The estimated cost of the Ground Transportation Center project is $125 million, to be raised from aviation capital funds.
At the meeting, Saenz outlined the airport’s expected 2025 revenues and expenses for its $292 million budget, which includes operations at Stinson Municipal Airport and is funded entirely by airline and passenger fees, concessions and federal grants.
In 2024, the airport received $36 million in federal grants for capital projects, with another $25.5 million expected next year.
Revenues in 2025 are expected to increase 20% over fiscal 2024 as landing fees, terminal rents and concessions, and parking fees increase by nearly $30 million. Expenses are also up about 17% to an expected $496 million next year.
In 2025, the airport will introduce landing and inspection fees for general aviation pilots who land, refuel and take off at the SAT for the first time, and will increase parking fees for aircraft allowed to remain at the airport overnight from $125 to $150 per night.
Construction of a new terminal
The largest item in the budget is $153 million for the terminal development program. The new terminal is scheduled to open in late 2028 with 17 gates, all of which have already been reserved by various airlines. Saenz said 70% of the design for the new terminal will be completed in 2025 and construction is expected to begin later in the year.
As the design work progressed, the estimated cost of the terminal rose from $1.4 billion to $1.68 billion.
The $1 billion contract with Colorado-based construction company Hensel Phelps stipulates that the at-risk construction manager must accept further cost increases when planning is 90 percent complete.
“We’re still within the $2.4 billion budget that we gave you for the entire six-year capital improvement program,” Saenz said. “Some things we’re watching very closely are the cost of materials. They’re constantly going up.”
He added that one of the airlines serving SAT has committed to spending $40 million on a 930-square-meter lounge in the terminal and that all 17 gates have been reserved by various airlines.
The new ground loading facility currently under construction at the airport will be completed in 2025, Saenz said, before construction of the new terminal begins.
Add new routes
Airport authorities have also set a goal of increasing the number of nonstop flights from 45 to 48 next year. SAT already offers more seats to Mexico than any other mid-sized airport, Saenz said.
He said his team is also working on the connection to the Rio Grande Valley while they wait for an announcement from the Federal Aviation Administration (FAA) on whether San Antonio will get one of the coveted spots at Ronald Reagan Washington International Airport (DCA).
Several council members, including Fourth District Councilwoman Adriana Rocha Garcia, asked Saenz whether SAT is competitive with other airports in terms of the existing and planned new fees it charges airlines and general aviation.
“That’s one of the things we take very seriously when we look at what’s called cost per boarding (CPE),” Saenz said, pointing to a possible new flight service that would reduce some of the airport’s costs.
“We have some more announcements coming here shortly … and airlines want to continue to grow in San Antonio, which is due to the costs associated with doing business here at SAT,” he said.
10th District City Councilman Marc Whyte asked Saenz what he thought was “the biggest obstacle” to adding more nonstop flights.
Market volatility combined with tight airline margins contributes to the problem, Saenz replied. But officials are continuing to work on adding flights, especially for the leisure market.
“(South America) is a very attractive (destination) for us. We’ve never been to South America, but it’s on our radar,” Saenz said. “Another focus is the Caribbean and then resuming flights to Canada.”
