Council signs off on historic deal
Austin-Bergstrom International Airport is moving ahead with its largest-ever expansion after City Council approved a long-term deal with seven major airlines. The 10-year “use and lease” agreement, nearly three years in the making, gives airport staff the green light to finalize contracts with Southwest, Delta, United, JetBlue, Spirit, American, and Alaska.
The agreement covers January 2026 through September 2035 and secures the carriers’ commitment to lease space in new facilities. It also establishes how much airlines will pay for gates, counters, baggage areas, and storage.
Major projects in the pipeline
Two centerpiece projects will define the expansion:
A new concourse with 20–30 gates, connected to the Barbara Jordan Terminal by an underground tunnel.
A six-football-field-sized Arrivals and Departures Hall that will serve as the airport’s new front entrance and return rideshare pickups to the curb.
When complete in the early 2030s, ABIA’s annual passenger capacity will more than double, from 15 million to 31 million.
Financial impacts
Under the new contract, airlines will pay about $20 per boarding passenger, up from $15 today. While airport officials say other U.S. airports charge similar rates, the increase could translate into higher ticket prices.
The overall expansion cost is expected to be confirmed by early 2026, though a $4 billion estimate has been used as a placeholder.
Airlines expand their footprint
Southwest Airlines, already the dominant carrier in Austin, plans to become the anchor tenant in the new concourse. The airline leases 10 of the airport’s 34 current gates and hopes to grow its presence to 18.
Meanwhile, discount carriers Allegiant and Frontier will remain at the South Terminal until it closes in 2026 to make way for $347 million in new taxiways. Both airlines will then move to the Barbara Jordan Terminal under new month-to-month agreements.
Thanks to kut.org for the scoop.
