San Diego International Airport (SAN) began construction on Phase 1B of the New Terminal 1 project in September 2025, which includes demolishing the former Terminal 1 and building 11 additional gates along with new passenger facilities to complete the rebuilt terminal following the opening of Phase 1A.
The San Diego County Regional Airport Authority announced on September 5, 2025, that construction on Phase 1B of the New Terminal 1 project had begun, with essential closures taking effect on September 8, 2025. As part of the work, the arrivals roadway between Terminals 1 and 2 was closed starting September 8, and drivers traveling between the two terminals are now using designated on-airport detour routes while construction progresses.
Phase 1A of San Diego’s New Terminal 1 Opened on September 23
San Diego County Regional Airport Authority officially celebrated the opening of Phase 1A of the new Terminal 1 on September 23, 2025, marking a historic milestone in the transformation of San Diego International Airport. The ribbon-cutting ceremony brought together airport executives, airline partners, and the Turner-Flatiron construction team to commemorate the occasion. The night before the event, Southwest Flight 2866 from Honolulu became the first flight to arrive at the new facility, welcomed with cheers, balloons, and gifts from airport staff. Replacing the original 58-year-old terminal, the New T1 is designed to enhance passenger comfort, improve capacity, and support future travel growth, with Gensler leading the architectural design and Turner-Flatiron delivering construction.
The state-of-the-art facility introduces 19 new gates, a spacious ticketing hall, a 13-lane security checkpoint, and seven high-capacity baggage carousels. Passengers now enjoy over 90,000 square feet of concessions, with a mix of local and national dining and retail options. The terminal also features the striking Luminous Wave glass façade and five large-scale public art installations that celebrate San Diego’s culture and natural beauty. Supporting infrastructure includes new access roads, a dual-level arrivals and departures roadway, and a 5,200-space parking plaza. Sustainability is central to the project, with the terminal powered by 100% carbon-free electricity, extensive EV charging facilities, an underground fuel delivery system, and a 900,000-gallon stormwater capture and reuse system — all designed to achieve LEED Gold certification and meet the city’s climate goals.
Phase 1B construction
Looking ahead, Phase 1B construction is scheduled to begin in early 2026, adding three additional gates by spring 2026 and the remaining eight by early 2028, bringing the total to 30 gates. Beyond improving the passenger experience, the $3.8 billion New T1 program is a major economic catalyst, expected to generate more than $4.5 billion for the local economy, support 25,300 jobs, and deliver $127 million in tax revenue for public services. Once fully completed, the New Terminal 1 will redefine the travel experience at SAN and stand as one of the most significant airport modernization projects in California.
What Phase 1B will deliver?
Phase 1B completes the New T1 program by building 11 additional gates, extra passenger amenities (including customer lounges) and significant airside and landside infrastructure enhancements. Combined with Phase 1A (19 gate additions), the New T1 will include 30 gates, expanded concessions, a new on-airport road and a major parking plaza.
Following the departure of the final flights on the evening of September 22, 2025, the original Terminal 1 was closed and subsequently demolished to make way for the next phase of development. Phase 1B of the New Terminal 1 project is now being built on the former terminal site, continuing the momentum of San Diego International Airport’s $2.6 billion modernization program, which has already significantly expanded capacity and enhanced the passenger experience.
With Phase 1A operations now underway, Phase 1B construction focuses on developing a new concourse and associated airfield infrastructure on the cleared site. According to current schedules, Phase 1B is expected to open in early 2028, with certain airside components reaching completion by mid-2028.
Local impacts and detours
Local residents and passengers continue to experience detours and occasional routing changes as construction of Phase 1B progresses — with some of these traffic adjustments expected to remain in place until the project’s completion in 2028, according to the New T1 project team. The work has also involved gate relocations and temporary repositioning of several airlines to accommodate ongoing construction activities. To support travelers, the Airport Authority is regularly publishing updated construction-impact guidance and detour maps to help passengers plan their journeys in advance.
Funding and approvals
Phase 1B draws financing from a mix of sources and federal grants; SAN disclosed that it received a federal grant for Phase 1B work financing, and the entire New T1 program constitutes an around $3.8 billion redevelopment that has utilized airport financing and other sources. The airport worked with the FAA and agencies locally to coordinate airfield construction sequencing and environmental controls.
Why Phase 1B matters?
Finishing Phase 1B will reclaim and add gate capacity at SAN and complete the modernized Terminal 1 passenger experience — more gates, more concessions and reconfigured roadway access that will mitigate surface congestion and improve passenger flow. Finishing Phase 1B (and the airside work that accompanies it) represents an ultimate, complex step because it requires demolition within the active airport footprint and demands careful planning of airplane movement and taxiways.
The momentum in California’s airport infrastructure isn’t limited to San Diego — in Los Angeles, the Skanska–Flatiron joint venture announced on September 29, 2025, that it had secured a $323 million contract as construction officially begins on the LAX Roadway Improvements project, a key component of the airport’s ongoing modernization program. And across the country, airports are pursuing major renovation projects, and MKE’s Concourse E Redevelopment stands as the latest addition to that growing list.
San Diego International Airport New Terminal 1 Phase 1B Project Factsheet
Key Dates & Timeline
Construction Preparation Begins: September 8, 2025 (arrivals roadway closure)
Existing Terminal 1 Closure: September 22, 2025 (permanent closure and demolition)
Phase 1A Opening: September 2025
Phase 1B Target Completion: Early 2028
Final Airside Work: Mid-2028
Project Scope & Deliverables
Phase 1B Components
11 additional aircraft gates
Enhanced passenger amenities including customer lounges
Major airside and landside infrastructure upgrades
Construction on the site of the existing Terminal 1
Combined New Terminal 1 Capacity
Total Gates: 30 (19 from Phase 1A + 11 from Phase 1B)
Expanded concessions program
New on-airport roadway system
Large parking plaza
Construction Impact
Immediate Changes (Starting September 8, 2025)
Closure of arrivals roadway connecting Terminals 1 and 2
Implementation of designated on-airport detour routes
Detailed navigation maps and animated detour videos provided
Tax revenue: $127 million
Ongoing Impacts Through 2028
Continuous detours and temporary routing changes
Gate shuffles and temporary airline relocations
Active coordination of aircraft movements and taxiways during demolition
Funding Structure
Total Program Value: Approximately $3.8 billion
Funding Sources:
Federal grants (including specific Phase 1B grant)
Airport financing
Multiple funding streams
