San Antonio plans to issue Airport Revenue Bonds totaling an estimated $1.2 billion on April 2nd, which does not require a bond election. The bond sale is scheduled for June 16th/17th, with the closing on July 15th. This issuance is intended to finance the Terminal Development Program and other airport improvements, building upon the City Council's approval of a Guaranteed Maximum Price (GMP) of $1.3 billion for the project on December 18th.
The airport expansion project, including a new third terminal (Terminal C) and the expansion of Terminal A, has seen its cost rise significantly. Initially, the 2023 council agreement allocated $1 billion for the Terminal C expansion. However, design updates led to a $300 million boost, bringing the new "Guaranteed Maximum Price" (GMP) to $1.3 billion, which officials state is still within the overall budget. The total capital projects, including the Terminal Development Project ($1,538.0 million), Airfield Safety Enhancements ($100.8 million), and Other Capital Projects ($504.1 million), amount to $2,142.9 million over FY 2026-FY 2031.
The city's Finance Department presented an update to the FY 2026 Debt Management Plan, highlighting the capacity analysis for Airport Revenue Bonds. This update follows an initial estimate of $500 million for the City’s next Bond Program. The first issuance of Airport Revenue Bonds is anticipated in FY 2026, estimated at approximately $1 billion, to be issued over multiple years. Hensel Phelps, a major airport contractor, is overseeing the majority of the $1.3 billion project and is more than 90% done with the design phase as of December.
Key components of the expansion include a 17-gate concourse, a new customs area, a multi-story Ground Transportation Center, and overnight parking for airplanes. Terminal A expansion is expected to finish by mid-2027, while Terminal C and a new parking garage are projected to be completed in 2028. The funding predominantly comes from the city's Capital Improvements (CIP) budget. Outstanding debt for airport projects includes $68.1 million in Passenger Facility Charge Revenue Bonds, $105.9 million in General Airport Revenue Bonds, $452.8 million in Airport System Revenue and Refunding Bonds (Interim Financing), and $113.5 million in Customer Facility Charge Revenue Bonds.
