San Diego International Airport is on track to complete the first phase of its Terminal 1 redevelopment by September 2025, with the addition of 19 new gates and enhanced amenities designed to improve the passenger experience and support regional growth.
The project, part of a $3.8 billion redevelopment plan, has been under construction while the current terminal remains operational.
The redevelopment’s first phase will open in late summer 2025, after which the existing Terminal 1 will be demolished to make room for the new, 30-gate terminal which is slated for completion by 2028.
Since its inception, the project’s budget has increased by $400 million, offset by higher-than-expected federal grants and lower-than-planned interest rates on bond issuances in fiscal years 2021 and 2023.
“The vast majority of the New T1 program is being funded by General Airport Revenue Bonds, as well as smaller contributions of airport cash and capital grants,” Nicole Hall, senior communications specialist at San Diego International Airport, said via email. “The bonds will be repaid from sources of airline revenue, parking, concessions, ground transportation fees and land rent.”
To date, the San Diego Regional Airport Authority has secured $192.1 million in federal grants, with an additional $114.9 million in future funding commitments, totaling $307 million in federal support for the redevelopment.
Terminal upgrades
The redevelopment includes expanded concessions with local San Diego businesses, the airport’s first outdoor dining space and a new baggage handling system capable of processing up to 2,000 bags per hour.
The new terminal will also feature a 5,200-space parking garage.
Upon completion, 21 food and beverage locations and nine retail stores will occupy 46,000 square feet, with brands like Taco Stand, Chick-fil-A and Gaslamp Marketplace.
The project includes a new three-lane access road connecting Laurel Street and North Harbor Drive, which is expected to reduce traffic on Harbor Drive by 45,000 vehicle trips per day.
San Diego International Airport is listed as the nation’s 25th busiest, with 25.24 million passengers traveling through it in 2024.
Hall said this slightly exceeds the passenger volume recorded in 2019, prior to the COVID-19 pandemic, which was 25.18 million.
In addition to terminal upgrades, the redevelopment plan includes a second taxiway and new infrastructure to accommodate increased demand.
The San Diego project is part of a broader national investment in airport infrastructure by the FAA.
Expanded connectivity
Hall said the first phase of the new terminal will serve Southwest, Frontier, Sun Country, Spirit, JetBlue, Allegiant and Breeze airlines.
Air Canada and WestJet are expected to join in early 2026. The second phase, opening in 2028, will include Delta.
As the airport prepares to unveil its revitalized Terminal 1, it will also expand international connectivity, according to Hall.
The airport will introduce its third European route on May 8 with KLM Royal Dutch Airlines’ three-times-weekly service to Amsterdam, complementing existing flights to London and Munich.
Hall said the airport is also working to add more gateways to Europe, Asia and South America.
“Latin America is one of the biggest gaps in our network, with San Diego being one of the largest unserved markets in the United States to Central and South America,” Hall said.
