To say that the relationship between Southwest Airlines and San Antonio Airport is strained would be massively underselling the pair’s ongoing dispute. And things are getting worse.
The latest round of the battle sees the airport on the cusp of removing all Southwest proprietary equipment from the check-in and gate areas, reverting them to common-use configuration (and fee structure), as part of the fiscal dispute.
Things turned sour between the airport and its largest airline (by both passenger count and departures, per Cirium data) as San Antonio built its new terminals. Southwest wanted to move to the new space and thought it was on the inside track for that access. When those gates were assigned to other airlines, however, the Dallas-based carrier filed a lawsuit claiming inappropriate behavior from the airport.
The lawsuit was dismissed and Southwest then turned to the Department of Transportation, claiming violation of various rules associated with airport operations. While that DOT complaint is pending, however, time marches on, and the two continue to spar over what’s appropriate in the interim.
Southwest, for example, has been writing checks to the Airport to cover its rent and other obligations, to the tune of $12.6 million over the past year. That amount was calculated using the legacy rates as if it holds a long-term contract for its gate space, a contract that it refused to sign because of its allocation to the A gates and associated rates for those gates.
After a year of collecting the checks (and at least four months after first informing Southwest that it was underpaying), San Antonio returned them to the airline, uncashed. The airport argues that Southwest owes just under $20 million, and that accepting the checks would be accepting Southwest’s terms and preclude the City from later collecting on additional rent due should it prevail in the legal battle.
The historical financial dispute is notable, but the future changes proposed by the airport will be far more significant.
As a non-signatory airline Southwest would be charged more than the other major operators. That would be exacerbated by the FY2026 budget which took effect on 1 October 2025. Because Southwest operates so much from San Antonio the move to charge it at higher rates would effectively see rates cut for the other carriers. It is no surprise that Southwest objects to that approach.
And while passengers have generally been spared from this sparring contest, that could also soon change. The airport, citing $20 million in unpaid bills, plans to remove Southwest’s branding and equipment from Terminal A.
[G]iven Southwest’s continued status as a non-signatory airline, the City plans to install City-owned common use passenger processing systems (“CUPPS”) at the ticket counters in Terminal A so that the City can assess per use fees based on actual usage. The City will begin the process of transitioning City gates and ticket counters in Terminal A to CUPPS, which may require the removal of proprietary equipment.
The move would see most branding removed and likely also the replacement of kiosks in the lobby. The gate areas could see Southwest’s infamous boarding group poles removed. Though maybe that latter bit is OK given the shift to assigned seating, and the associated boarding changes, from late January 2026.
Southwest, of course, objects to this plan, quipping, “Such threats and behavior are more reflective of gamesmanship, rather than responsible airport operations.”
In one of the briefs San Antonio notes that Southwest is now resigned to its Terminal A allocation. That part of the fight is over. But how much it is expected to pay for those gates very much remains an open issue. And neither side is showing any willingness to budge.
The DoT, by US law, was expected to issue a ruling on 10 October. Instead the government gave itself a 60-day extension to 9 December. The federal shutdown certainly is not helping get this resolved, and neither party will budge while the case is pending. Whether passengers are impacted remains to be seen.
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