Green light for expansion
Austin-Bergstrom International Airport is preparing for its biggest growth project yet after City Council approved a long-term deal with seven major airlines. The 10-year “use and lease” contract, which took nearly three years to finalize, secures commitments from Southwest, Delta, United, JetBlue, Spirit, American, and Alaska to occupy new space once it is built.
The agreement, effective January 2026 through September 2035, lays out how airlines will pay for gates, counters, baggage facilities, and storage. Cargo carriers could also join under similar terms.
Major construction projects
Two centerpiece projects will define the expansion plan:
A new concourse of 20 to 30 gates connected to the Barbara Jordan Terminal by an underground tunnel
A massive Arrivals and Departures Hall, equal in size to six football fields, that will serve as the airport’s new front entrance and bring rideshare pickups back to the curb
With these additions, ABIA’s capacity is projected to more than double by the early 2030s, rising from 15 million passengers annually to over 31 million.
Costs and passenger fees
Under the deal, airlines will pay about $20 per boarding passenger, an increase from the current $15. Whether that change translates into higher fares will be left to the carriers. The overall expansion budget has not been finalized, though officials continue to cite a placeholder estimate of $4 billion until the gate count and funding are locked in next year.
Southwest positions for growth
Southwest Airlines, which already operates the largest share of flights at ABIA, is aiming to become the anchor tenant in the new concourse. The Dallas-based carrier currently leases 10 of the airport’s 34 gates and is seeking to increase its total to 18.
International and legacy carriers with smaller footprints, including Aeromexico, Air Canada, British Airways, and Lufthansa, remain on month-to-month contracts at higher rates than airlines covered by the new agreement.
Changes for low-cost airlines
Allegiant and Frontier will remain in the South Terminal until it is closed and demolished in 2026. The city plans to replace the facility with $347 million in new taxiways. Both budget airlines are expected to shift to the Barbara Jordan Terminal once the South Terminal is gone.
Next steps
City and airline officials are expected to finalize the gate count and overall expansion costs by January 2026. Aviation leaders say the agreement signals strong confidence from the airlines in Austin’s future growth and the airport’s expanding role as a regional hub.
Thanks to kut.org for the scoop.
