Southwest Airlines, City of San Antonio end dispute over gate assignments at airport

ALBUQUERQUE, NM – APRIL 20: A Swissport jet fuel truck prepares to refuel a Southwest Airlines Boeing 737-700 plane at Albuquerque International Sunport (ABQ) on April 20, 2026 in Albuquerque, New Mexico. Jet fuel prices have roughly doubled since the start of the war in Iran, and airlines around the world have been cutting routes, raising fares, adding fuel surcharges and boosting baggage fees. (Photo by Al Drago/Getty Images)

SAN ANTONIO (KTSA News) — A legal battle between Southwest Airlines and the City of San Antonio appears to be over.

On Thursday, the city announced a new agreement that settles some of the differences the two sides had over gate assignments at San Antonio International Airport (SAT).

Conflict started when the airline filed a lawsuit over lease agreements approved by city council. Southwest Airlines was unhappy with how new gate assignments were being laid out a the airport’s new Terminal C, which is set to open in 2028.

The agreement gives Southwest Airlines at least six gates at SAT, which includes three in the soon-to-be renovated Terminal B, and three more in the upcoming Terminal C. The new terminal broke ground in December 2024 and is expected to cost around $1.2 billion.

The lawsuit filed in September 2024 accused the city of using subjective factors when it came to assigning airlines at terminals throughout the airport.

In August 2025 the lawsuit was dismissed.

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