Southwest Airlines to receive 18 gates at Austin Airport’s new Concourse B

Austin Bergstrom International Airport (AUS) has finalized multi-year Airline Use and Lease Agreements (AULAs) with carriers, establishing the framework for how airlines, as well as cargo carriers, will operate at AUS over “the next decade.” One of the key agreements was with Southwest Airlines, which will receive 18 out of 26 gates at the airport’s new Concourse B.

On January 7, 2026, the City of Austin announced that it had finalized AULAs with signatory airlines and cargo carriers, including Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines, as well as FedEx and UPS, which “define the methodology for how airline fees are calculated for airport-owned facilities such as runways, ticket counters, gates, baggage systems, aircraft parking positions, and leased operational spaces.”

The City of Austin argued that the charges directly supported the airport’s ability to issue and repay revenue bonds that are used to expand AUS. Non-signatory airlines will continue flying from/to the airport “by paying per-use charges for airport facilities,” while the finalized AULAs will ensure that the signatories “commit to funding their proportional share” of the airport’s expansion projects.

Ghizlane Badawi, the Chief Executive Officer (CEO) of AUS, said that the finalization of the AULAs represented “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.”

The city pointed out that five main infrastructure projects will be supported by the AULAs: the new Concourse B, a new arrivals and departures hall, the new pre-engineered Concourse M, the redevelopment of Concourse A, and utility projects.

The latter “will upgrade and expand essential heating and cooling capacity as well as key supporting systems, including electrical power, IT/telecommunications, storm drainage, water quality, and deicing infrastructure.”

At the new Concourse B, the two signatory airlines, Southwest Airlines and United Airlines, will receive 18 and five gates, respectively, while another three gates will still be available for airlines' domestic flights as common-use gates. Southwest Airlines is the anchor tenant of the new building.

According to AUS, “Concourse B is estimated to open in the early 2030s,” with the concourse helping the airport meet its “long-term passenger activity level demand.”

The pre-engineered Concourse M will add six gates at AUS, supporting “construction phasing, accommodate new airline entrants, and provide operational flexibility for irregular operations, including off-schedule and diverted flights.”

Meanwhile, the redeveloped Concourse A will house all international flights and non-signatory airlines. As the anchor tenant of this facility, Delta Air Lines will receive 15 gates, with American Airlines and Alaska Airlines sharing another nine and one gate, respectively. Another eight gates will be common-use for both domestic and international routes.

AUS has been one of the fastest-growing airports in the US. According to Cirium’s Diio Mi, in 2025, compared to 2019, the airport’s total capacity, measured in available seat kilometers (ASKs), grew by 38%.

Out of all the US airports with at least 50,000 total yearly one-way departures in 2025, AUS’ capacity growth rate was only outpaced by two other airports: San Juan Luis Munoz Marin International Airport (SJU, 58.8%) and Nashville International Airport (BNA, 53.6%). In terms of scheduled ASKs in 2025, AUS was the 26th busiest airport in the US, just behind Baltimore/Washington International Thurgood Marshall Airport (BWI).

At AUS itself, despite the fact that Southwest Airlines already was the airport’s largest airline in 2019, the carrier had the third-fastest growth rate when comparing the increase in ASKs from 2019 to 2025, firmly cementing itself as the number one airline at the airport. In 2025, the airline had 38,164 scheduled departures from AUS.

Delta Air Lines, the second-largest airline at AUS, had 18,314.

It is no surprise that Southwest Airlines is the biggest beneficiary of the new AULAs. After all, the airline does not plan to slow its growth at the airport, especially since on December 12, 2025, it unveiled that it will open a crew base for its pilots and flight attendants at AUS in March 2026.

The base should employ up to 2,000 people by mid-2027, it said. However, potential growth opportunities at AUS were not the only incentive for Southwest Airlines to open a base at the airport.

According to the City of Austin’s statement, there is an agreement for the airline to receive $5.5 million of possible incentives over five years. Payments will only be made after the airline “demonstrates annual compliance and creates eligible Austin jobs,” with 10% of the payments going directly to Austin’s City's Childcare Assistance Reserve Fund.

“There are no upfront subsidies, no tax abatements, and no automatic payouts. All incentives are capped and tied to job creation and community benefits, ensuring the deal remains fiscally responsible and protective of taxpayer dollars.”

At the time, Badawi said that the airport was excited that Southwest Airlines would become the anchor tenant at the upcoming Concourse B. Still, the base’s announcement was about “creating thousands of high-quality, high-wage jobs for Austinites and fueling long-term economic growth for our region.”

Delta Air Lines also said that it would create a flight attendant base in September 2025, which was scheduled to open the following month.

Ted Cruz, a Republican from Texas, said that the carrier’s flight attendant base and new routes from AUS “will open more travel choices for Texans, bring hundreds of good-paying jobs, boost local businesses, and further cement Texas as a national leader in economic growth and innovation.”