Austin, August 28, 2025
News Summary
Austin city leaders are set to approve a decade-long use and lease agreement for Austin-Bergstrom International Airport, facilitating major expansions, including a new concourse with 20 additional gates. The projected $5 billion renovation aims to boost international flights and enhance passenger services without using local tax dollars. Southwest Airlines plans to claim a significant portion of the new gates, while Delta Air Lines is set to introduce new nonstop routes. The agreement may yield increased competition and reduced airfare for travelers from Austin.
Austin city leaders are preparing to approve a decade-long use and lease agreement for Austin-Bergstrom International Airport (ABIA) as they aim to enhance air travel services significantly. The Austin City Council is set to vote on this agreement on Thursday, with the goal of facilitating substantial airport expansion.
The agreement is poised to enable airport officials to negotiate with airlines for critical additions to ABIA, including the construction of a new concourse that will feature 20 additional passenger gates. This infrastructure upgrade aims to accommodate the growing demand, as ABIA recorded over 22 million passengers in 2023, making it the busiest year in the airport’s history.
The planned expansion is expected to introduce more international flight options to key destinations such as Seoul, Tokyo, and Paris. The overall cost for these developments, which include the new gates as well as various infrastructure enhancements, is estimated to be around $5 billion. Importantly, the funding for this expansion is structured to not utilize local Austin tax dollars; instead, it will rely on revenues generated by the airport, alongside Federal Aviation Administration (FAA) grants, revenue bond proceeds, and cash reserves.
Frequent travelers have expressed enthusiasm over the prospect of increased international flight availability from Austin. The expansion also emphasizes improvements in customer experience, specifically targeting enhancements in baggage handling systems and shorter wait times at Transportation Security Administration (TSA) checkpoints.
The new concourse is projected to be completed by the early 2030s. The forthcoming contract between the city and airlines will dictate various operational aspects, including fees and gate-sharing arrangements. This agreement is crucial for both the financing and the subsequent construction phases of the new concourse, with comparisons drawn to typical shopping mall leasing agreements. Potential benefits might include more nonstop flight routes and reduced airfare as competition among airlines increases, although the specifics of these impacts remain under negotiation.
As part of the expansion process, Southwest Airlines is seeking to claim up to 18 gates in the new concourse, which nearly doubles its present allocation. Delta Air Lines is also expanding its footprint at ABIA, expecting to launch six new nonstop routes by the next summer season. Conversely, American Airlines has reduced its service levels, cutting over 25 routes since 2023.
If the agreement is approved, it will be effective from 2026 through at least 2035. The Austin Airport Advisory Commission has already endorsed this deal, paving the way for construction on a second concourse, which is slated to begin next year.
In addition to the agreement, the City of Austin and the Austin-Bergstrom International Airport have introduced the Gateway 2 Concessions initiative. This project intends to empower small businesses by integrating them into the airport concessions framework, thereby enriching the travel experience. Workshops will be held to assist local entrepreneurs in understanding the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program. The Gateway 2 Concessions Prep Course Series comprises three parts that will cover fundamental business concepts and revenue contracts, and interested business owners are encouraged to register for this training.
FAQ Section
What is the purpose of the decade-long airport use and lease agreement?
The agreement aims to facilitate the expansion of Austin-Bergstrom International Airport by allowing airport officials to negotiate with airlines for new infrastructure and services.
How many additional gates will the new concourse have?
The new concourse is planned to feature 20 additional passenger gates.
How is the expansion being funded?
The $5 billion expansion will not use local tax dollars; it will rely on airport-generated revenue, FAA grants, revenue bond proceeds, and cash reserves.
What improvements are expected from the expansion?
The expansion aims to enhance customer experience through better baggage handling and shorter TSA wait times, as well as increasing the availability of international flights.
When will the new concourse be completed?
The completion of the new concourse is expected in the early 2030s.
What is the Gateway 2 Concessions initiative?
This initiative aims to involve local businesses in airport concessions, enhancing the travel experience while supporting small enterprises.
Chart of Key Features of the Airport Expansion
| Feature | Details |
|---|---|
| New Gates | 20 additional gates for passengers |
| Estimated Cost | $5 billion |
| Funding Sources | Airport revenue, FAA grants, revenue bonds, cash reserves |
| Completion Timeline | Early 2030s |
| Passenger Growth in 2023 | 22 million passengers |
| Key Destinations | Seoul, Tokyo, Paris |
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Additional Resources
- KVUE News
- Wikipedia: Austin–Bergstrom International Airport
- Statesman
- Google Search: Austin Bergstrom Airport Expansion
- Hoodline
- Google Scholar: Austin Bergstrom Airport Expansion
- ATX Today
- Encyclopedia Britannica: Austin Bergstrom International Airport
- KVUE News
- Google News: Austin Bergstrom International Airport Expansion
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The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
