Airport Experience® News -Customer Service Issue 2026

DIRECTOR’S CHAIR

the bilateral flight restrictions that that we are still subject to. China traffic is is only about 50% of pre-pandemic levels, but there has been strong increases in other areas of Asia, including Japan, Taiwan, Hong Kong, Korea, Singapore, India. In the short term we are seeing some geopolitical impact with regards to travel from Canada and the Middle East, but I have optimism for continual increasing demand in the long term. WARD: You mentioned the Terminal 3 West project currently underway. Can you share details? NAKORNKHET: Spring of 2028 is when we expect to see the first phase of openings – the passenger processing, the check-in kiosks, the security areas and the gates. The project itself has also morphed from the initial vision. There’s a building that is being built in between Terminal 3 and the International Terminal that will be a combination of office spaces and airline lounges. There’s also an expansion of the eastern part of Terminal 3 West to create more [lounge] space and concessions. WARD: Looking ahead, what’s next in terms of infrastructure?

NAKORNKHET: In the current capital improvement plan, the major project is the T3 West project. It’s a $2.5 billion project that will add over 200 square feet of concession space, airline clubs, passenger processing, state-of-the-art equipment, and technology. In addition to that, we are adding cargo capacity to be able to process increased cargo demand here at SFO. We’re also undertaking utilities work. We have a wastewater treatment plant, for example, that is being connected to the rest of the campus, so that so that we can treat the wastewater and then recycle a certain amount. We are looking into expanding our electrical capacity. We want to install more charging stations for passenger and employee vehicles, as well as the fleet vehicles on the airside. WARD: I’d like to shift to revenue generation. How are how are your terminal concessions performing? NAKORNKHET: We recently opened the SF Eats Food Hall in Harvey Milk Terminal 1, and that’s seeing tremendous success. We’re seeing the highest spend rate airport wide in Harvey Milk Terminal 1, and the demand for concessions there is something

Above: SFO is in growth mode with a new Terminal 3 West modernization project that is designed to help the airport accommodate rising passenger numbers.

I want to be able to emulate airport-wide. We’ll take a similar concept and apply it to Terminal 3 when we open it. I’d also like to expand that concept to the Dianne Feinstein International Terminal as well, so we can capture the success of that concept and apply that success airport-wide. OVERALL, our concessions are growing in line with our passenger growth, but I think there are opportunities … to grow our concessions demand and sales to an even stronger level. I think we have an opportunity to expand our concession offerings in in a creative way that’s aligned with flight schedules so that they have even more success airport-wide. WARD: How are your lounges performing, and do you have plans for more? NAKORNKHET: We have The Club at SFO in Harvard Milk Terminal 1 that’s in very high demand and wins industry accolades. We also have the Amex

15

AX NEWS OCTOBER/NOVEMBER 2026

Made with FlippingBook Annual report maker