[7][8] It is the first airport in both Western Visayas and the island of Panay built to international standards, serving as the primary gateway to the region.

During the inauguration, former President Gloria Macapagal Arroyo described the airport as the most beautiful and modern in the country, calling it a symbol of both political will and economic maturity.

[15] It was also referred to as Tiring Landing Field (TLF) by others but this is an inaccurate name as the airfield had installations in other Cabatuan, Iloilo barrios as well.

The 2,202-square-meter (23,700 sq ft) terminal building,[20] constructed in 1982 to handle the passenger demands of a single airline, (Philippine Airlines, being the Philippines' aviation monopoly at the time), was unable to cope with the liberalization of the Philippine aviation industry and the subsequent boom in air travel, when as many as four airlines served the airport at the same time and where the passenger terminal needed to have an area of at least 7,800 square meters (84,000 sq ft) in order to absorb all peak-hour demand.

To counteract this, the Air Transportation Office (the forerunner of the Civil Aviation Authority of the Philippines) installed six air-conditioning units at the pre-departure area.

At one point, the ATO, which was already having difficulty managing vehicular traffic around the airport, proposed banning cargo and delivery trucks from passing through the road in front of the terminal building.

[24] Despite the endorsements, the NEDA, citing an internal rate of return below the set "hurdle rate" of fifteen percent and the impossibility of acquiring some 415 hectares (1,030 acres) of land for the project in one year, rejected the airport proposal in February 1998,[25] and the project was subsequently excluded from the 1998 development cooperation program of the German government.

[27] Heeding the recommendations of the JICA report, President Joseph Estrada signed a memorandum in November 1998 creating the Iloilo Airport Coordinating Committee, headed by Iloilo-born senator Franklin Drilon.

[30] The project finally received NEDA approval in March 2000,[31] with Cabatuan as the location of the new airport based on a study performed by both the DOTC and the JICA later that year.

After almost two years of negotiations, and after initially refusing to bankroll the project,[33] the JBIC extended a 6.2 billion peso (US$152 million) loan to the Philippine government in August 2000.

[45][46][47] Out of the two proposals, the name Panay International Airport was dropped due to opposition by the Iloilo city and provincial governments,[41] the Sangguniang Panlungsod of Iloilo City,[48] the mayor of Cabatuan and Justice Secretary Raul Gonzalez,[49][50][better source needed] all citing that it is illogical to rename an airport after an island as large as Panay.

[44] Local newspaper The News Today issued an informal survey asking Iloilo City residents what should be the name of the airport and why.

[52] Opposition to the proposed name change has also come from Senator Drilon,[53] the Iloilo Business Club,[54] and the regional office of the Department of Tourism.

[39] Some sources indicated that the airport would open on May 10, 2007, during a major TEAM Unity rally in Iloilo City that President Arroyo was expected to attend,[58] although this date was not considered in favor of a date after the 2007 elections,[59] specifically in June,[60] in order to avoid political overtones from dominating the airport's opening.

[66] Operations on the first day of the airport's commercial activity ran smoothly, although a baggage conveyor belt and X-ray machines malfunctioned due to a sudden surge in passengers trying to catch their early morning flights.

[74] After Cebu Pacific announced the resumption of international flights from Iloilo to Hong Kong and Singapore — which had been suspended since 2020 due to the COVID-19 pandemic, Iloilo City Mayor Jerry Treñas emphasized the need for a larger airport to accommodate the influx of passengers and increase in cargo traffic.

If no other companies submit a counteroffer during the Swiss challenge, PAVI will retain its status as the original project proponent.

The total cost to rehabilitate and expand the airport's facilities, including the proposed projects, is pegged at ₱14.7 billion, according to a report from the CAAP.

[79] Three jet bridges protrude from the terminal above a 48,000-square-meter (520,000 sq ft) apron,[39] enabling Iloilo International Airport to handle up to six aircraft simultaneously.

Other amenities available to passengers include a special smoking room, a duty-free shop,[83] a VIP lounge, a Mabuhay Lounge for Philippine Airlines business class passengers[84] and counters for hotel and car rental bookings, as well as areas for airport stores and payphones.

[79] On August 5, 2016, the CAAP launched the airport's free wireless Internet network, in cooperation with PLDT and Smart Communications.

[82] The airport has water treatment facilities and a 6-hectare (15-acre) man-made pond used for flood control and drainage purposes as well as for the irrigation of nearby farmland.

[93] The DOTC plans to stage international cargo flights out of the airport, as sixty percent of Philippine seafood exports come from Panay.

[97] Philippine Airlines later announced its intent to serve this route as well, suggesting that Iloilo tourism authorities mount thrice-weekly charter flights to the city using PAL Airbus A320 aircraft.

[101] PAL Express, a subsidiary of Philippine Airlines, once considered a direct route from Iloilo to Malay to boost Boracay-bound tourism traffic.

[102] A resolution passed by the Iloilo City Local Development Council (ICLDC) called on PAL president (now DOTr Secretary) Jaime Bautista to institute direct flights to Malay from Iloilo, with onward service to Cebu City on the return portion from Malay.

Amid the 2022 monkeypox outbreak and its associated health risks, Iloilo Governor Arthur Defensor Jr. announced that the airport would remain closed to international flights.

[89] Scoot, the low-cost subsidiary of the Singapore Airlines Group, announced plans to launch direct flights to Iloilo by April 2025 to compete with Cebu Pacific in this route.

At Bangga Dama in Santa Barbara, the Tomas Confesor Highway serves as a bypass access road from the avenue.

[117] Other proposals to connect the airport to the city via rail include the revival of the currently defunct Panay Railways network which has a station in Santa Barbara town proper.