Austin-Bergstrom International Airport (AUS) has finalized new multi-year agreements with major passenger airlines and cargo companies, setting the operational and financial terms for the next decade. The agreements, which include both Airline Use and Lease Agreements and Signatory Cargo Agreements, are designed to support ongoing airport operations and fund a significant expansion program that will add 32 new airline gates.
The signatory airlines and cargo partners involved in these agreements are Southwest Airlines, Delta Air Lines, United Airlines, American Airlines, Alaska Airlines, FedEx, and UPS. These contracts define how fees for facilities such as runways, ticket counters, gates, baggage systems, aircraft parking positions, and leased spaces are calculated. This fee structure is essential for generating revenue that enables AUS to issue bonds and secure financing for its planned expansions.
Non-signatory airlines and cargo operators will continue to pay per-use charges under standard industry practices. The finalized agreements require all participating airlines and cargo companies to contribute their share of costs through rent and fees based on a cost-recovery model. This approach supports projects aimed at increasing capacity, improving resiliency, and enhancing the passenger experience.
Several key projects will be funded by these agreements:
– Concourse B: A new concourse featuring 26 gates—18 assigned to Southwest Airlines as anchor tenant—with expanded ramp operations.
– New Arrivals and Departures Hall: Modernization efforts include redesigned curbside areas to ease congestion; a pedestrian bridge connecting parking garages with the Rental Car Facility; an expanded baggage claim hall; centralized TSA checkpoint; updated ticket counters; concessions; mobility lounge; and meet-and-greet area.
– Concourse M: An additional facility providing six new gates with dedicated bus service between terminals. It offers flexibility for irregular operations.
– Concourse A Redevelopment: Updates to existing facilities in the Barbara Jordan Terminal will result in a modernized post-security concourse housing international flights. Delta Air Lines will serve as anchor tenant with 15 gates.
– Utility Projects: Upgrades across heating/cooling systems, electrical power supply, IT/telecommunications infrastructure, storm drainage improvements, water quality enhancements, and deicing capabilities are included to support increased demand.
As project scope has grown—from an initial estimate of $4 billion covering 20 gates to over $5 billion supporting 32 gates—Austin Aviation plans to seek additional spending authority from the Austin City Council for design and construction services. Funding sources remain traditional: airport cash reserves, current/future revenues from airport operations (not local taxpayer dollars), future revenue bond proceeds, and Federal Aviation Administration grants.
Ghizlane Badawi, Chief Executive Officer of Austin-Bergstrom International Airport stated:
“Today marks a historic moment for our airport, our city, and the Central Texas community. This agreement reflects years of partnership, thoughtful negotiations, and shared vision with our airline partners. Their commitment provides the financial foundation we need to modernize our facilities, transform customer experience, and build the infrastructure needed to support Central Texas’ continued growth for generations to come. AUS would not be where it is today without the collaboration and investment of our airlines, and we are deeply grateful for their trust and partnership as we shape the future of air travel in Central Texas.”
Kirk Watson, Mayor of Austin added:
“I’m proud to have been here when this airport first opened, and I’m proud to stand here again as we usher in a new era for aviation in Central Texas. The expansion we commit to today will define the expansion of the future—supporting travelers, strengthening our economy, and preparing Austin for the decades of growth ahead. We are grateful to the airlines for believing in Austin,
investing in Austin,
and helping us build what comes next.”
Vanessa Fuentes,
District 2 Councilmember,
City of Austin said:
“This expansion program represents a tremendous economic opportunity for Austin—not only through the trades
and construction jobs created during
the buildout,
but also through long-term jobs in concessions,
airport operations,
and airline services after
the program is complete.
We thank our airline partners
for their continued investment
in our community
and for helping create a stronger,
more connected Central Texas.”
More information about upcoming improvements can be found at https://www.austintexas.gov/AUSJourney.
