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Austin-Bergstrom International Airport begins talks with airlines on $800M+ expansion

Austin-Bergstrom International Airport begins talks with airlines on $800M+ expansion
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Ghizlane Badawi, CEO | Austin-Bergstrom International Airport

Austin-Bergstrom International Airport (AUS) is set to begin negotiations with airlines for the allocation of 20 new gates as part of a significant expansion project. The airport, which currently operates at full capacity, plans to bring these gates online gradually starting in the early 2030s. This move is expected to potentially double the airport’s current capacity and offer more travel options for local residents.

The Austin City Council has approved talks between the airport and airline operators regarding a new use and land agreement (ULA). This agreement will outline which airlines will use the new gates and set airport fees and costs associated with their usage. Funding for the expansion will not come from taxpayer money; instead, financial arrangements with airlines through the ULA will play a central role.

Austin-Bergstrom currently has 34 gates at its Barbara Jordan Terminal. The upcoming Concourse B will add 20 gates, with provisions for a future Concourse C that could add another 20 gates if needed. The last major expansion at AUS was in 2019 when nine gates were added, increasing capacity to handle up to 15 million passengers annually. However, passenger numbers have surpassed this figure in recent years, reaching over 21 million each year from 2022 through 2024.

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Ghizlane Badawi, CEO at Austin-Bergstrom International Airport, stated that details about the total cost of the expansion would be released by early 2026. Airlines must finalize their agreements by January 1, 2026. Badawi said,

"We are thankful for our airlines’ shared commitment to deliver safe, modern, and efficient airport facilities that meet the needs of travelers and the region for years to come and we are grateful to the Austin City Council, City of Austin leadership and our business and community partners who have supported this transformational work, none of which would be possible without the tens of millions of people who pass through our terminal each year."

The planned Concourse B will be linked to the main terminal via underground moving walkways. There are also plans for a new Arrivals and Departures Hall at the front of Barbara Jordan Terminal as passenger traffic is projected to exceed 40 million annually in coming years.

Southwest Airlines leads operations at AUS with more than a 40% market share and control over ten gates. It is expected that Southwest will become the anchor tenant of Concourse B upon completion, increasing its gate count to eighteen.

Other major carriers operating at Austin include American Airlines, Delta Air Lines, United Airlines, Alaska Airlines, JetBlue, and Spirit Airlines. Despite a drop in passenger numbers since reaching over 22 million in 2023, demand remains high. Bob Jordan, CEO of Southwest Airlines, has expressed optimism about Austin eventually becoming Texas's busiest airport.

For more information on Austin-Bergstrom International Airport’s designation as a major domestic facility serving over twenty-one million annual passengers in recent years: https://www.austintexas.gov/airport

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