San Francisco Airport extends lease agreement with 39 airlines for two years

The San Francisco County government meeting on July 4, 2025, focused on significant modifications to existing agreements between the city and various airlines, as well as updates to paratransit services.

The primary discussion centered on a resolution to extend the 2011 lease and use agreement between San Francisco International Airport and 39 signatory airlines for an additional two years, through June 30, 2023. This extension comes as a response to the ongoing recovery from the COVID-19 pandemic, which severely impacted passenger levels and airline operations. The current agreement, which was set to expire on June 30, 2021, allows airlines to operate flights and rent terminal space at the airport. The extension aims to provide financial stability for both the airport and the airlines during this recovery period.

Airport staff indicated that negotiations for a new lease agreement would resume next month, with the new terms requiring approval from both the airport commission and the board of supervisors. The proposed modification also includes updates to comply with federal, state, and local laws, while maintaining existing lease provisions.

The Budget Legislative Analyst Office reviewed the lease extension and projected revenues of approximately $578 million over the two-year term. The committee unanimously recommended moving the resolution to the full board for approval.

In addition to the airline lease discussion, the meeting briefly addressed a resolution to amend a paratransit broker and operating agreement, extending its term by five years and increasing the contract amount by $169.3 million. This amendment aims to enhance accessible transportation services in the city.

Overall, the meeting underscored the city's efforts to adapt to the evolving landscape of air travel and public transportation, ensuring continued support for both sectors as they navigate post-pandemic challenges.