Mexico’s federal government plans to expand Loreto International Airport with a new terminal, extended runway, and upgraded infrastructure designed to handle up to one million passengers per year. The project, announced by President Claudia Sheinbaum’s administration, would transform one of Baja California Sur’s smallest commercial airports into a regional gateway capable of receiving larger aircraft and international flights.
Loreto’s Airport Has Operated at Limited Capacity Since 1977
Loreto International Airport (LTO) opened in 1977, built to serve a small fishing town that Mexico’s tourism development agency, FONATUR (Mexico’s national tourism development fund), had designated as one of five planned resort corridors. While Los Cabos and Cancún boomed, Loreto’s development stalled. The airport’s single terminal and short runway have remained largely unchanged for decades.
Today, LTO handles roughly 400,000 to 500,000 passengers annually. Most commercial service comes from domestic carriers, with limited seasonal flights from U.S. cities like Dallas, Los Angeles, and Calgary. The runway, at approximately 2,200 meters, restricts the size of aircraft that can land. Larger wide-body jets used on busy international routes cannot operate there.
The expansion plan calls for extending the runway to 3,000 meters and building a second terminal. That length would accommodate Boeing 787s and Airbus A321neos, the workhorses of medium-haul international routes. The project also includes a new control tower, expanded taxiways, a larger parking apron, and modernized fuel and baggage systems.
FONATUR has managed Loreto’s broader tourism infrastructure through the Loreto Bay development since the 1970s. But investment has been uneven. The Loreto Bay resort community, originally a FONATUR master plan, went through bankruptcy in 2009 before being revived under new ownership. The town’s tourism economy has grown steadily in the years since, driven largely by sport fishing, eco-tourism, and the Islands of Loreto National Marine Park.
Sheinbaum Administration Has Prioritized Baja Sur Airport Projects
The Loreto announcement fits within a broader federal push to upgrade airports across Baja California Sur. In March 2025, the Sheinbaum administration confirmed plans to expand La Paz’s Manuel Márquez de León International Airport. That project includes a new passenger terminal, longer runway, and capacity targets similar to Loreto’s. San José del Cabo’s international airport, the peninsula’s busiest, completed a Terminal 4 expansion under the previous administration.
Federal officials have framed these projects as part of a strategy to distribute tourism more evenly across the peninsula. Los Cabos received over 4.2 million air passengers in 2024, while La Paz and Loreto combined handled a fraction of that volume. The government argues that expanded airport capacity in smaller cities can reduce overcrowding in Los Cabos while generating economic growth in underserved communities.
The Mexican military’s airport management agency, GAFSACOMM (which took over operations of several national airports in 2023), would likely play a role in Loreto’s expansion. Under President Andrés Manuel López Obrador, Mexico transferred control of multiple airports from private operators to military oversight. Loreto’s airport already operates under federal management.
No confirmed construction timeline or budget has been published for the Loreto project. Federal infrastructure announcements in Mexico often precede detailed planning by months or years. The La Paz airport expansion, announced around the same time, also lacks a firm start date.
Property Market and Access Routes Stand to Shift
Loreto’s real estate market has grown quietly over the past decade. The Loreto Bay community, Nopoló, and surrounding areas have attracted a mix of American and Canadian retirees, many drawn by lower costs compared to Los Cabos. A one-bedroom condo in Loreto Bay currently lists between $200,000 and $350,000 USD, roughly half the price of comparable properties in Cabo San Lucas.
If the airport expansion delivers direct international flights from more U.S. and Canadian cities, demand for property and short-term rentals in the Loreto corridor would likely increase. The town’s current population sits near 22,000, and its tourism infrastructure (hotels, restaurants, tour operators) remains small-scale. Rapid growth could strain water, power, and road systems that were designed for a much smaller community.
Loreto receives its municipal water from a combination of wells and limited desalination. Baja California Sur already faces chronic water stress, and CONAGUA (Mexico’s national water commission) has classified aquifers in the Loreto basin as under pressure. Any significant population or tourism increase would require parallel investment in water infrastructure.
The next concrete milestone will be the release of a federal project timeline and environmental impact assessment, typically required before runway construction can begin. The announcement was reported by Diario El Independiente.