What happened
Austin-Bergstrom International Airport announced on Jan. 7 that it has finalized decade-long Airline Use and Lease Agreements and cargo signatory deals that clear the path for a sweeping expansion: 32 new gates, a rebuilt terminal experience and supporting infrastructure projects that push the program from an earlier $4 billion estimate to just over $5 billion. The agreements were signed by major carriers and cargo operators including Southwest, Delta, United, American, Alaska, FedEx and UPS.
Why this matters
The new contracts do more than promise more flights. They create the predictable revenue stream lenders want and lock airlines into a 10-year commitment to the airport — the financial glue needed to issue bonds and move forward with large, long‑lead projects without tapping local tax dollars. In short: the airlines have put skin in the game, and Austin’s next decade of air service will be built around that commitment.
The expansion, gate by gate
- Concourse B: The largest piece of the plan, Concourse B will add 26 gates. Southwest is slated to anchor Concourse B with 18 gates, United will take five, and three gates will remain for domestic common use. Design work is underway; officials estimate the concourse will open in the 2030s.
- Concourse A redevelopment: The Barbara Jordan Terminal’s existing Concourse A, ticketing and baggage areas will be reworked. Delta will be the international anchor with 15 gates; American will operate nine, Alaska one, and eight gates will be designated common-use (domestic and international capable).
- Concourse M: A smaller, pre‑engineered six‑gate concourse intended to provide operational flexibility and capacity boosts during construction and busy days. A dedicated bus link will shuttle passengers between the Barbara Jordan Terminal and Concourse M.
Supporting projects include a new Arrivals and Departures Hall with a centralized TSA checkpoint, expanded baggage claim, a pedestrian bridge to parking and rental car facilities, modernized concessions and a campus-wide utility upgrade — new heating/cooling capacity, electrical and deicing infrastructure to support the larger footprint.
Jobs, airline strategy and money
Southwest has been the most conspicuous growth player here. The carrier plans to nearly double its gate footprint at AUS and is moving toward establishing a local crew base and command center — steps that airport and city officials say will bring thousands of jobs and make Austin a more integral hub for Southwest operations. Community reports indicate an economic incentive agreement tied to some of Southwest’s local investments.
Airport leaders emphasize funding will come from airport cash, future revenues, bond proceeds and Federal Aviation Administration grants — not from city tax levies. The expanded financial picture has pushed the program budget higher; officials now anticipate a program north of $5 billion as scoping and phasing are refined.
What travelers will notice
Passengers can expect a redesigned “front door” experience: a new arrivals/departures hall intended to reduce curbside congestion, consolidated TSA screening to simplify lines, improved baggage handling, and more concessions and passenger amenities. Officials also say rideshare pickup will be moved closer to the terminal to streamline drop-off and pickup.
Airport leaders are also watching how new consumer and navigation technologies influence traveler behavior. Features like conversational navigation assistants and automated booking agents are changing how people plan arrival times and pickups, so airport planners are keeping an eye on tools such as advanced in‑map copilots and agentic booking systems that could reshape passenger flows and curbside demand (Google Maps gets a Gemini copilot; Google AI Mode’s agentic booking).
Risk and timing
Big programs come with big scheduling and cost risks. Concourse M is the near‑term solution meant to ease capacity pressures while larger elements of the program are designed and built. Exact timelines remain fluid — Concourse B is a longer‑lead project targeting the 2030s — and airport staff will seek additional spend authority from City Council as the project scopes are finalized.
CEO Ghizlane Badawi framed the agreements as the collaborative underpinning for the airport’s next era, and Mayor Kirk Watson called the expansion a long‑term investment in Austin’s connectivity and economy. Whether the program hits its higher price tag cleanly or encounters further inflationary pressure, the 10‑year airline commitments give AUS a clearer path to financing and construction than it had before.
For the detailed city release and a full list of projects, see the official Austin-Bergstrom announcement on the City of Austin site: AUS press release.