American and Southwest Airlines Revise Strategies at Texas Airports

American Airlines and Southwest Airlines, two major carriers based in Texas, are re-evaluating their operational strategies at Austin-Bergstrom International Airport (AUS) and San Antonio International Airport (SAT). These changes reflect the airlines’ responses to shifting market conditions and internal evaluations.

American Airlines has announced it will cut four additional routes from AUS, building on the 18 routes it already eliminated earlier this year. The Dallas Fort Worth (DFW)-based airline had initially aimed to expand its presence in Austin post-pandemic, establishing the city as a key hub with extensive nonstop connections. However, recent decisions indicate a strategic retreat from that objective.

The latest cuts will affect routes to Boston, Nashville, and Raleigh/Durham, which will be discontinued in November. Additionally, service to Orange County, California, will end in January 2025. An American spokesperson noted that these route adjustments are part of a “continuous evaluation of our network,” adding that the airline is proactively reaching out to impacted customers to minimize inconvenience. Despite the cuts, American Airlines assures travelers that it will offer 20% more peak-day seats at AUS in 2025 compared to 2019 and will continue to operate to all eight of its hubs from Austin.

On the other hand, Southwest Airlines is facing challenges at San Antonio International Airport, where it is engaged in a dispute over gate assignments. The airline has threatened not to sign a new use and lease agreement with SAT, as the current contract expires at the end of the month. Southwest, which has its roots in San Antonio and holds nearly 40% of the market share at SAT, had expected to relocate to the new 17-gate Terminal C when it opens in 2028. However, SAT has assigned Southwest to remain in the older Terminal A.

Southwest alleges that it negotiated the lease agreement with the assumption that it would operate from Terminal C. The airline contends that the renovations planned for Terminal A will be insufficient to match the passenger experience expected in the new terminal. A Southwest spokesperson emphasized that the airline would have “never agreed” to the new lease under the current conditions, indicating a reevaluation of its future growth plans at SAT.

The airline has expressed concerns that SAT’s gate allocation appears to favor American Airlines and Delta Air Lines, both of which are planning to build premium lounges in Terminal C. “SAT is targeting an elite subset of passengers with its gate allocation decision,” the spokesperson stated, criticizing the move that forces a significant portion of passengers into the smaller, less modern Terminal A.

Both Southwest Airlines and SAT are hopeful for a resolution to the ongoing discussions. “We will continue to look to the city/airport to provide a mutually agreeable resolution,” Southwest said. In response, SAT Director Jesus Saenz affirmed the airport’s commitment to its long-standing relationship with Southwest and expressed confidence that a resolution would be reached soon.

While the situation unfolds, Southwest could potentially continue operating as a non-signatory carrier at SAT, though this arrangement would be atypical and more costly for an airline with such a prominent presence at the airport. As both airlines navigate these changes, the future of air travel in Texas remains dynamic.