Thousands more vehicle parking spaces could become available at the San Antonio International Airport sooner than planned.
Parking shortages at the airport, an ongoing problem since air travel bounced back after the pandemic, have pushed officials to fast-track a planned ground transportation center (GTC) at the San Antonio International Airport (SAT).
The city’s Director of Airports Jesus Saenz told council members at the City Council’s first budget work session this week that the project would go out for bids later this year with construction expected to start in 2025.
The existing garage often reaches capacity, Saenz told council members.
“I’m sure some of you all may have received some calls, maybe some complaints about parking,” he said. “We closed [the garage] every day this year during the summer, and we’ve got to do something about that, and we’re moving as quickly as possible.”
There are currently more than 9,000 vehicle parking spaces in garages and on surface lots at the San Antonio airport, many of which are fully used during peak travel times. About 600 spaces are used for a valet service.
The original ground transportation center expansion project, with 500 additional parking spaces and shuttle, taxi and rideshare services, was initially one of many “enabling” projects in the 20-year, $2.5 billion Airport Strategic Plan that was approved by 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 structure could now be built in phases, with an estimated 2,000 spaces being built at a location identified west of the existing parking garage, Saenz said. The original plans called for the GTC to be positioned directly across the departure lanes from the new terminal, which is being built alongside Terminal B.
Record-breaking SAT travel
The move to build more parking comes as the airport experienced its busiest month in history. Over 1 million passengers flew through SAT in July and the airport is on track to reach 11.6 million by year’s end.
“We could be in large hub airport [category] if we continue at the growth rate that we’re at,” Saenz said.
The airport has shifted its vehicle parking management to private operator SP Plus Corporation, which oversees all ground and garage parking at the airport, including shuttle and valet services. It will soon provide baggage-checking services too.
While over 2 million people reside in San Antonio, Saenz has said the airport’s users in the region number almost 6 million, people who often drive their cars to the airport and expect to find parking spots.
The estimated cost of the ground transportation center project is $125 million, which would be come from aviation capital funds.
At the briefing, Saenz laid out projected 2025 revenue and expenses for the airport’s $292 million budget, which also includes operation of Stinson Municipal Airport, and is fully funded through airline and passenger fees, concessions and federal grants.
In 2024, the airport was awarded $36 million in federal grants for capital projects. Another $25.5 million is anticipated next year.
Revenue in 2025 is expected to increase by 20% over fiscal year 2024 as landing fees, terminal rents and concessions and parking, are increasing by almost $30 million. Costs have also increased by about 17% to a projected $496 million next year.
In 2025, the airport will institute for the first time landing and inspection fees that it charges general aviation pilots who land, refuel and take off from SAT, and increase “remain overnight” aircraft parking from $125 to $150 nightly.
Building a new terminal
The largest expense in the budget includes $153 million for the terminal development program. The new terminal is expected to open in late 2028 with 17 gates, all of which various carriers have already reserved. Saenz said 70% of design for the new terminal will be completed in 2025 with construction expected to start later in the year.
As design work has unfolded, the estimated cost of the terminal has increased from $1.4 billion to $1.68 billion.
The $1 billion contract with Colorado-based construction firm Hensel Phelps states that when design reaches 90% completion, the construction manager at risk will assume further cost increases.
“We’re still within the budget of the $2.4 [billion] that we’ve given you for the overall six-year [capital improvement program],” Saenz said. “Some things that we’re watching very closely is the cost of materials. They’re constantly increasing.”
He added that one of the airlines servicing SAT has committed to spending $40 million on a 10,000-square-foot lounge in the terminal and all 17 gates have been reserved by various carriers.
The new ground loading facility now under construction at the airport will be completed in 2025, Saenz said, before the new terminal breaks ground.
Adding new routes
Airport officials also have set a goal to increase the number of nonstop flights from 45 to 48 in the coming year. SAT already offers the most airline seats to Mexico than any other medium-sized hub airport, Saenz said.
He said his team is also pursuing service to the Rio Grande Valley while they wait for an announcement from the Federal Aviation Administration on whether San Antonio will be awarded a coveted slot at Ronald Reagan Washington International Airport (DCA).
Several council members, including District 4 Councilwoman Adriana Rocha Garcia, asked Saenz if SAT is competitive with other airports when it comes to existing and proposed new fees it charges airlines and general aviation.
“It’s one of the things that we take very seriously as we look at what we call the cost per enplanement, CPE,” Saenz said, hinting at potential new air service that will reduce some of the airport’s costs.
“We have some other announcements that will be coming here shortly … and the airlines are continuing wanting to grow in San Antonio, and that’s attributed to the cost associated with doing business here at SAT,” he said.
District 10 Councilman Marc Whyte asked Saenz what he thought was “the biggest impediment” to gaining more nonstop flights.
The volatility of the market combined with tight margins for the airlines contributes to the issue, Saenz replied. But officials continue to work to add flights, especially to leisure markets.
“[South America] is a very attractive [destination] for us, we’ve never been in South America, it’s on our radar heavily,” Saenz said. “Getting into the Caribbean is another focus as well, and then getting service back into Canada.”
