San Antonio is getting ready for a lot more people to fly in and out of its airport.
The new Terminal C will be huge - more than 850,000 square feet with up to 18 gates. It will also include over 30,000 square feet of lounge space. Delta Air Lines has committed $30 million to $40 million for its own lounge, while American Airlines is putting up $25 million to $35 million for a similar space.
The bonds are set to price on July 21, with maturities ranging from 2027 all the way out to 2060. RBC Capital Markets and Ramirez & Co. are the lead underwriters handling the sale. Moody's Ratings gave the deal an A2 grade, and S&P Global Ratings assigned an A+.
These ratings indicate a low credit risk, reflecting the airport's solid financial management and the essential nature of its services. The bond proceeds will be used not only for Terminal C but also for related infrastructure improvements, ensuring the airport remains competitive as San Antonio grows.
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Airport director Jesus Saenz said the expansion is about more than just the terminal itself. "You have a large amount of investment that's happening downtown to renovate and rehab everything," he said. "All of those efforts are an attraction for people to want to continue to come to San Antonio, whether that be for business or leisure."
The city is growing fast, and officials want to make San Antonio the next big aviation hub in Texas. By 2040, the airport expects to handle about 15 million passengers a year.
It is not just the airport getting attention. Big companies like Toyota, HEB Grocery Co., and Microsoft have relocated or expanded in the San Antonio area. San Antonio residents also voted to back taxpayer money for a new Spurs arena downtown. All of that development is expected to boost travel demand even more.
The total cost of the new terminal alone is estimated at $1.7 billion, so the bonds will cover a big chunk of that.
Airport debt is a busy corner of the municipal bond market. Last year, U.S. airports sold a record $24 billion in bonds. So far in 2026, airport bond issuance has fallen by approximately 24% compared to the same stretch in 2025.
Jeffery Timlin, the lead portfolio manager for municipal strategies at Sage Advisory Services, thinks the timing works for San Antonio. "They're doing what everybody else is doing across the board, rightly so, updating and modernizing their facilities," he said. "This is a time where capital is easily flowing as we've seen across pretty much every fixed income sector so I think that you know this is a good time for them."
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