Austin airport one step closer to major expansion that will add 32 new gates

AUSTIN, Texas — Austin-Bergstrom International Airport is one step closer to getting a major makeover after finalizing lease agreements with airlines that will support future renovations, including the addition of 32 new gates.

The airport on Wednesday announced the completion of Airline Use and Lease Agreements and Signatory Cargo Agreements with several major airlines and cargo companies, including Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Airlines, FedEx and UPS.

According to a press release from the airport, the use-and-lease agreements allow companies to commit funding to the project through rent and fees “generated under the agreements’ cost-recovery structure, supporting the airport’s ability to deliver projects that expand capacity, strengthen resiliency, and improve the passenger experience.”

The agreements will support the following projects at Austin-Bergstrom over the next 10 years:

• The addition of Concourse B, which will add 26 new gates, including 18 for Southwest Airlines and five with United Airlines.
• Concourse M, adding six new gates, a bus to transport travelers to and from the Barbara Jordan Terminal, new concessions, restrooms and passenger amenities.
• Enhanced seating and amenities, increased space and modernized concessions in Concourse A (home to all international flights). Delta Air Lines will have 15 gates, American Airlines will have nine, Alaska Airlines will have one and there will be eight common-use gates.
• Updates to HVAC systems, electrical system, IT and telecommunications, storm drainage, water quality and de-icing infrastructure.

In a statement, District 2 Councilmember Vanessa Fuentes applauded the future job creation that’s to come out of the project. 

“This expansion program represents a tremendous economic opportunity for Austin—not only through the trades and construction jobs created during the buildout, but also through long-term jobs in concessions, airport operations, and airline services after the program is complete,” Fuentes said.

“This agreement reflects years of partnership, thoughtful negotiations, and shared vision with our airline partners. Their commitment provides the financial foundation we need to modernize our facilities, transform customer experience, and build the infrastructure needed to support Central Texas’ continued growth for generations to come. AUS would not be where it is today without the collaboration and investment of our airlines, and we are deeply grateful for their trust and partnership as we shape the future of air travel in Central Texas,” said Ghizlane Badawi, CEO of Austin-Bergstrom International Airport.

The final cost of the project is still under development, but is anticipated to grow from an estimated $4 billion to $5 billion. According to the airport, funding sources include airport cash reserves, airport revenues, bond proceeds and grants from the Federal Aviation Administration. 

“No local Austin taxpayer dollars are used to fund the airport’s expansion program,” the release said.