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American Airlines cements dominance as Dallas/Fort Worth expands with new terminal investment

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American Airlines cements dominance as Dallas/Fort Worth expands with new terminal investment
Policy
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Robert D. Isom, CEO and President | American Airlines

Dallas/Fort Worth International Airport (DFW) has become one of the busiest airports in the world, now ranking third globally by passenger traffic. American Airlines plays a central role in this growth, operating 82% of all DFW flights and offering over 930 daily departures to more than 230 destinations across 30 countries.

American Airlines was formed in the 1930s through a merger of several smaller carriers but only moved its headquarters from New York City to Dallas/Fort Worth after the opening of DFW airport in 1974. The relocation was completed in 1979, shortly after airline deregulation allowed companies to select their own routes and pricing structures. This change enabled airlines to adopt hub-and-spoke networks, with DFW becoming American’s main hub due to its strategic central location and potential for future expansion.

Sean Donohue, CEO of DFW International Airport, said: “It might have been one of the smartest decisions an airline ever made in aviation history. Who knew what the DFW area was going to grow into but to establish their headquarters down here and where we are now — a brilliant decision.”

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The economic impact of American’s presence at DFW is significant. According to figures cited by American Airlines, business at DFW contributes about $43 billion annually to Texas’ economy. In May 2023, American renewed its commitment with a new decade-long lease agreement that includes nearly $5 billion for facility upgrades.

DFW directly supports approximately 60,000 on-site jobs—over half provided by American—and creates more than 200,000 indirect employment opportunities throughout the region. Aviation-related businesses including flight schools and logistics firms have grown around the airport complex as a result.

Longtime employee George Zee reflected on his tenure at American during an interview marking his 50th anniversary: “I’m proud to celebrate 50 years as an American Airlines team member this year and to have witnessed so much growth at DFW throughout my career. There are many reasons why I’ve stayed with the airline for so many years, but mainly it’s because of the people. I love helping our customers and my coworkers every day.”

The development of regional infrastructure such as expanded highways and transit links—including Dallas Area Rapid Transit’s Orange Line—has followed demand created by airport operations.

American’s dominance at DFW has been supported by historical policy measures such as the Wright Amendment passed in 1979. This law limited interstate flights out of nearby Love Field airport (DAL), reducing competition from carriers like Southwest Airlines and concentrating large-scale operations at DFW.

Southwest Founder Herb Kelleher commented during legislative hearings: “If a three-aircraft airline can bankrupt an 18,000-acre, 9-miles-long airport, then that airport probably should not have been built in the first place.”

Congressman Jim Wright led efforts in Congress for these restrictions; while they did not prevent Southwest's eventual success nationally, they did consolidate major carrier traffic at DFW for decades.

Looking ahead, plans are underway for Terminal F—a $4 billion project announced on August 27—that will add capacity for further growth at both American Airlines and DFW itself. All gates in Terminal F will be used exclusively by American when it opens its initial phase in 2027.

American CEO Robert Isom stated: “DFW is American’s largest and most critical hub, and with this expanded plan for Terminal F, DFW has a clear path to become the largest airline hub in the world. Dallas-Fort Worth is one of the fastest growing regions in the country, and we’re excited that American and North Texas will continue to grow together. Terminal F will elevate our customer experience in a big way, providing customers with a fantastic new facility and state-of-the-art amenities.”

Terminal F is expected to feature increased lounge space along with updated check-in areas and parking facilities designed specifically for international travelers.

Organizations Included in this History
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