Council signs off on long-term agreement
Austin-Bergstrom International Airport is moving forward with its largest expansion to date after City Council approved a new deal with seven major airlines. The 10-year “use and lease” agreement, nearly three years in the making, secures commitments from Southwest, Delta, United, JetBlue, Spirit, American, and Alaska to lease space in new facilities.
The contract will run from January 2026 through September 2035. It outlines how much airlines will pay for gates, ticket counters, baggage areas, and storage, and could also bring in big cargo carriers.
Expansion projects ahead
Two major additions will transform the airport:
A new concourse with 20 to 30 gates, linked 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 restore curbside rideshare pickups
Once completed in the early 2030s, ABIA’s annual capacity will more than double, from 15 million to over 31 million passengers.
Financial impacts for travelers
Airport officials said airlines will pay about $20 per boarding passenger, up from $15 today. Whether those costs affect ticket prices will be up to the carriers, but other U.S. airports already operate in that range.
The overall cost of the expansion has not yet been finalized. A $4 billion estimate has been used as a placeholder until airlines approve the final gate count and budget in early 2026.
Southwest aims to expand
Southwest Airlines, already the airport’s largest carrier, intends to become the anchor tenant in the new concourse. The Dallas-based airline currently leases 10 of ABIA’s 34 gates and hopes to expand its share to 18.
Other carriers with fewer flights, such as Aeromexico, Air Canada, British Airways, and Lufthansa, remain on month-to-month contracts and pay higher rates than the seven airlines in the long-term agreement.
Changes for budget carriers
Allegiant and Frontier will continue operating from the South Terminal until it closes in 2026. The city plans to demolish the building to make way for $347 million in new taxiways. Both carriers are expected to transition to the Barbara Jordan Terminal under new month-to-month agreements.
Looking ahead
Final details of the deal, including the gate count and total price tag, are expected by January 2026. ABIA officials say the commitment from multiple airlines reflects confidence in Austin’s continued growth and the airport’s role in the region’s future.
Thanks to kut.org for the scoop.
