Construction on a new $1.4 billion terminal at San Antonio International Airport has officially commenced, despite ongoing legal challenges surrounding gate assignments for airlines.

The expansion project will significantly increase the airport's size, including a new terminal and 17 additional gates. Terminal C is expected to be completed by 2028 and will create approximately 6,000 new jobs in the region.

Currently, the airport serves about 1 million passengers monthly. The expansion will add 832,000 square feet of new space, featuring a parking garage and ground transportation infrastructure for the terminal.

However, the construction has become the center of a legal dispute between Southwest Airlines and San Antonio aviation officials.

In September 2024, Southwest Airlines filed a federal lawsuit against the city, claiming "unjust discrimination" by the airport's decision on gate allocations. The airline alleges that it was initially promised 10 gates in the new Terminal C, but the airport reversed this plan by granting additional gates to American Airlines and Delta Airlines, which are building premium lounges in the new terminal.

As a result, Southwest stated that it was now being asked to continue operations from Terminal A, the airport's older terminal.

Southwest emphasized its longstanding role at the airport, noting that it has historically been the leading airline in terms of market share, accounting for 40 percent of the passengers at San Antonio International.

Newsweek reached out to Southwest Airlines for updates on the ongoing legal dispute via email.

In response, San Antonio aviation officials shared a statement, asserting, "As the fastest growing city in America, we remain committed to doing what is best for San Antonio International Airport and the millions of passengers that use it each year. The airline agreement is the foundation of our Terminal Development Program, and Southwest's actions could have the effect of halting our progress and keeping the airport the way it is."