A $3 billion passenger-first Terminal One transformation at San Diego International Airport

The new Terminal One development at San Diego International Airport (SAN). Credit: SAN.

San Diego International Airport (SAN) is in the midst of a $3 billion transformation that puts passenger experience, environmental stewardship and regional identity at the forefront. At the centre of this effort is the redevelopment of a new Terminal One, a project designed to bring modern infrastructure, a reimagined concessions model, and future-ready innovation to one of California’s busiest single-runway airports.

“The existing Terminal One is over 50 years old, designed with technology from 60 years ago,” states Hampton Brown, Chief Revenue Officer and Vice President of Revenue, Marketing, Innovation and Customer Experience at SAN. “It’s not a very inviting place. People have described it as the Thunderdome for those who are fans of Mad Max, or a mosh pit. The customer experience in that terminal has been less than optimum.”

Phase one of the new terminal is set to open in September 2025, delivering 19 new gates within a significantly more spacious environment. An additional 11 gates will follow in phase two, bringing the total to 30 by 2028. Though the expansion will not increase the airport’s overall flight capacity – limited by its single runway and around 50 operations per hour – the goal is clear: comfort, efficiency and improved revenue potential.

“This project is to fix the situation,” says Brown. “Right now, there are queues for the lavatories, for concessions, people can’t move freely. We’re building the terminal passengers deserve.”

The new Terminal One features an outdoor deck. Credit: SAN.

Building for comfort and revenue

Unlike many terminal expansions driven by capacity increases, SAN’s redevelopment is rooted in improving the passenger experience. The impact is expected to be measurable.

“In Terminal 2 West, where we have more space, we see a dramatic difference in sales per enplanement,” explains Brown. “We fully expect Terminal One to deliver similar commercial performance once it opens.”

The terminal project also includes a 5,000 space parking structure, airfield taxiway improvements, and redesigned roadways, all aimed at streamlining operations and creating a stress-free arrival and departure experience.

A sports bar where you can catch the game before your flight. Credit: SAN.

Sustainability at the core

As a Californian airport and one of the first North American airports to reach the highest level of airport carbon accreditation, sustainability is embedded in SAN’s DNA. The new terminal will be powered by 100% carbon-free electricity, and an array of environmental features has been built into the programme.

Among these are:

• A second 1.5 million gallon rainwater cistern to collect and reuse runoff water
• Over 250 EV charging spaces
• Plans for an airport transit station
• A multi-use bike path to support low-carbon commuting
• Airfield improvements to reduce taxi in and taxi out times
• New Terminal One elevated to mitigate sea-level rise
• An underground fuelling hydrant system that removes the need for fuel trucks (airport-wide project).

The Taco Stand, a beloved local chain serving tacos al pastor and Baja-style seafood. Credit: SAN.

Creating a sense of San Diego

A standout feature of the Terminal One redevelopment is its “sense of place” strategy, designed to immerse travellers in San Diego’s cultural, culinary and artistic heritage.

“We want to cater to people who want that quintessential San Diego experience – like a fish taco before they leave,” Brown says. “But we also recognise the need for recognised staples that travellers know and trust. It’s about variety and meeting expectations across the board.”

This philosophy is reflected in a 60/40 split between local businesses and nationally recognised chains. Some of the standout new concessions include:

• Novecientos Grados, which translates to “900 Degrees”, a new signature restaurant co-owned by skateboarding legend Tony Hawk and former “Top Chef” contestant, Claudette Zepeda, offering views of the bay from an outdoor patio beyond security
• The Taco Stand, a beloved local chain serving tacos al pastor and Baja-style seafood
• Liberty Station Gifts, a nod to San Diego’s naval heritage
• Retail spaces featuring murals by Chicano artists, bringing storytelling and community into the terminal space.

“These aren’t just places to shop or eat – they’re experiences,” adds Brown. “They reflect the city’s culture, its diversity and its pride.”

Novecientos, a new signature restaurant co-owned by skateboarding legend Tony Hawk and former “Top Chef” contestant, Claudette Zepeda, offering views of the bay from an outdoor patio beyond security. Credit: SAN.

Data-driven, passenger-led innovation

Even without a formal innovation department, innovation is a clear priority at SAN, led through cross-functional collaboration and data-informed strategies.

“We don’t have an innovation team because innovation is everyone’s job,” states Brown. “Every department is tasked with identifying at least one issue each year and solving it in a new way.”

Examples include new applications of business intelligence to target parking promotions by user segments, and a gate pass initiative – currently rolling out in Terminal 2 – to allow non-ticketed guests through security, strengthening both experience and revenue opportunities.

“We’re creating a revenue model based on having variety. We are also using business intelligence more efficiently to determine the precise optimum location for vendors at the airport and to target our parking marketing. We are segmenting our parking database by a user and then tailoring products for them to enhance revenues. Nothing stays the same so we are thinking of the revenue streams of the future and questioning whether people will even need parking in 20 years.”

Liberty Station Gifts gives a nod to San Diego’s naval heritage. Credit: SAN.

A rising global profile

Thanks to strong airline partnerships and data-backed route development, SAN is expanding its international footprint, welcoming Porter Airlines (Toronto), KLM (Amsterdam) and Copa Airlines (Panama) to its growing list of global connections.

“We’re now solidifying our role as Southern California’s second intercontinental gateway,” Brown details.

C: SAN.

About the interviewee

Hampton Brown, Vice President of Revenue, Marketing and Innovation and Chief Revenue Officer of San Diego Country Regional Airport Authority is a marketing professional with over 25 years of experience in airport international strategic marketing and project management. His career shows emphasis on market research, strategic planning, competitive intelligence, international negotiations, project management, operation / process analysis, and international aviation, finance and telecommunications. Hampton has extensive experience marketing and negotiating with airlines and telecommunications providers in multiple cultural settings.