July was a record-breaking month at the San Antonio International Airport (SAT), and activity planned for the terminals and runways next year are projected to keep things buzzing.
SAT made history in July with more than 1 million passengers flying in and out of the airport, the most ever recorded in a single month, said Jesus Saenz, director of airports for the San Antonio Airport System.
Speaking during a City Council work session on the proposed 2024 fiscal year budget Tuesday, Saenz called it a “big accomplishment” for airport staff.
“A number of people would always ask, ‘When are we going to be out of COVID? When are we going to be back to 2019 numbers?’” he said. “And I can’t help it but I almost want to shout it out loud, ‘We did it this year.’”
The previous highest monthly passenger record was set in July 2019, with 961,838 passengers.
The record-breaking month follows SAT’s busiest ever May and June — along with the busiest single day on July 31, with 41,560 passengers.
It also comes on the advent of a year when major projects outlined in the airport’s 20-year, $2.5 billion strategic improvement plan get underway, including work toward making the proposed new terminal a reality.
The proposed budget includes a 2024 capital improvement program of $252.8 million, of which $110 million is for the terminal development construction plan. More complete design renderings are expected in 2024 and the start of work to make way for the terminal.
“Quite simply, we just want to start putting shovels in the ground on a lot of groundwork, things that we want to do to prepare the area for the new terminal complex,” Saenz said.
The terminal is on track to open in the first half of 2028.
In addition to what airport officials call the enabling projects for the new terminal that will start in 2024, Saenz said a construction manager will be named for the new terminal, and a new airline use and lease agreement negotiated.
Work on a ground load facility at SAT is expected to start this year, with the facility set to open in spring 2025, adding additional gate capacity to the three that opened in late 2022 and early 2023.
In a ground load facility, travelers use a system of switchback ramps that lead from the ground to the front and back of the plane instead of a jetway. It is considered a more efficient way to load and unload passengers, serving to attract more air service with lower airfares.
In the fiscal year 2024 capital improvement program, about $40 million will be spent on the ground load facility and another $20 million will go toward improving the baggage handling system.
Taxiways H and N along the runways also will get updates within the next 12 to 18 months, a project that accounts for almost $47 million in the 2024 capital budget.
Also in 2024, SAT will become the first airport in the nation to launch a program known as runway incursion prevention through situational awareness, or RIPSA, a Federal Aviation Administration safety system designed to reduce the risk of collisions on runways.
Another $15 million will go toward information technology and security upgrades, $7 million for improvements at Stinson Municipal Airport and $3 million for roadway and parking improvements.
Funding for improvements will come from federal grants, the issuance of bonds and passenger and airline revenue.
Saenz told the council that the airport has received $38.8 million in grants this year. That’s in addition to the $57 million awarded to the airport for capital projects in the previous three years. Other funding requests have been submitted, he added.
The airport’s proposed operating budget for fiscal year 2024 is $462 million, an 81% increase over the adopted 2023 budget due mostly to increased spending through the capital improvement program.
Operating revenue at the airport is projected to grow by 8.5% over 2023, Saenz said. That increase is expected to come from non-airline revenue such as concessions and parking.
Airport officials plan to solicit for a new concessions bid for both terminals in the coming year and also review solicitations for a parking optimization program that could result in different “parking features” at the airport, Saenz said.
A proposal outlining the scope of those plans will be presented to the council in the coming months.
Parking was at a premium at the airport this summer, also breaking records. Both short- and long-term parking garages filled nearly to capacity almost daily, much like during the 2022 holiday season, Saenz said.
In the fall, the airport had 80 spaces set aside for valet parking with a demand for 500.
“So we have to be very creative and we have to continue to look at additional authorities to adjust our existing pricing platform,” he said.
As part of the budget work session, Mayor Ron Nirenberg and the council also discussed how financing the airport improvements will affect the city’s bond ratings as it issues debt.
While there’s a different rating system for airports, there is a direct tie between how the city is rated and its debt for the airport project, said City Manager Erik Walsh. But non-airline revenue, passenger counts and other elements also figure into those ratings.
Councilwoman Melissa Cabello Havrda (D6) said she feels the collective energy of the airport impacting the community. “I keep saying that the airport is the rising tide that lifts all boats,” she said.
This article has been updated to correct that the ground load facility is scheduled to open in spring 2025, not October 2024.
