“With the completion of these new, 10-year airline lease agreements, we're committed to an expansion that looks beyond right now ... having a short-term focus, but with a long-term vision,” Austin Mayor Kirk Watson said. “This is about preparing our region for long-term growth.”
The gist
The Austin-Bergstrom International Airport, or ABIA, will add a total of 32 new gates under its expansion project, with 26 of those gates tied to the construction of a new Concourse B.
Southwest Airlines' planned expansion into the Austin market is slated to see 18 new gates, nearly doubling its current occupancy at ABIA. Lynn Lunsford, a spokesperson for the airline, noted that the company is planning to operate close to 200 flights out of the Austin airport.
“Frankly, with the growth at Austin, it’ll be one of our biggest airports in the state,” Lunsford said.
Under a $5.5 million economic incentive agreement with the city, signed in December, Southwest is expected to relocate its command center and establish a new pilot and flight attendant base at the airport—bringing 2,000 new jobs to ABIA by 2027.
The crew base will open in March, with the company actively recruiting and transferring roughly 335 pilots and 650 flight attendants to the area.
“The big thing is that we will have people who live in Austin, start and end their days in Austin—they're part of the community,” Lunsford said.
He explained that the move is key to Southwest’s expansion locally, as having staff based in the market allows the airline to offer additional services, such as earlier departures.
Airport officials confirmed United Airlines also secured five gates in the proposed Concourse B, and three gates will be available for domestic common use.
Diving deeper
These agreements give Austin’s airport the financial backing it needs to keep operating day to day while paying for major construction and expansion projects, an airport news release states.
Known as the Airline Use and Lease Agreement and the Signatory Cargo Agreement, the contracts set the rules between ABIA and the airlines and cargo companies that operate there. They lay out the major upgrades planned over the next decade and explain how airline fees are calculated to cover airport operations, maintenance and long-term improvements. The agreements also lock airlines and cargo companies into operating at the airport for the next 10 years.
Signed by airlines including Southwest, United, Delta Air Lines, American Airlines, and Alaska Airlines, along with cargo carriers FedEx and UPS, the agreements spell out how much companies pay to use airport facilities such as runways, gates, ticket counters, baggage systems and aircraft parking areas. That revenue makes up a large share of the airport’s budget and helps fund the loans and bonds needed to pay for the airport’s expansion.
The operating cost has ballooned from an originally estimated $4 billion to closer to $5 billion, according to the most recent update from airport officials.
However, the agreements are expected to boost ABIA’s revenue significantly. Austin’s Aviation Department August projections indicate that the airport’s net income will nearly double in fiscal year 2026-27—rising 97% over the previous year, according to city documents.
The ABIA expansion project is funded through airport cash reserves, current and future airport revenues, future revenue bond proceeds and Federal Aviation Administration grants, with no local tax dollars involved, according to ABIA staff.
What this means for travelers
ABIA CEO Ghizlane Badawi said the airport’s expansion project is intended to give a better experience to passengers.
“We're advancing transformative improvement to the front door of AUS,” she said. “A centralized TSA checkpoint will simplify the security experience and expanding the new airline ticket counters will enhance the check-in process.”
Badawi added that a new baggage claim and upgraded handling system will make arrivals less congested and easier to navigate. Airport staff are also working to move rideshare pickup and drop-off closer to the terminal, creating a more convenient experience for travelers.
In addition, the expansion plan includes a new six-gate Concourse M designed to support airport operations during construction and periods of congestion and provide additional capacity to handle delays, schedule changes and diverted flights, Badawi said. Passengers will be transported between the Barbara Jordan Terminal and Concourse M through a dedicated transit system, she said.
Officials are ready for any potential “bottlenecks,” Watson said, pointing to projects underway such as gate expansion agreements, Concourse M, additional parking garage space and efforts to extend Austin’s light rail to the airport.
