The Austin city council voted to authorize the Texas capital’s airport to negotiate a new use and land agreement (ULA) with its airline tenants that will shape the scope of future expansion plans.
Austin-Bergstrom International Airport (AUS) plans more than $800 million in construction projects between now and the early 2030s, ultimately resulting in at least 20 gates added to the airport. AUS currently has 34 gates.
A ULA assigns gates and space, as well as outlines fees and costs, so AUS needs an updated agreement with airlines to determine how the new gates will be assigned and how fees charged to carriers will contribute to the total cost of expansion.
According to the airport, Southwest Airlines is the leading carrier at AUS with a market share of 41.1%, followed by Delta Air Lines (18.1%), American Airlines (16%) and United Airlines (11.9%). Those four carriers are the key passenger airlines with which AUS is negotiating the ULA.
“As part of the agreements under consideration, airlines are committing to … leasing the 20-plus new gates that AUS anticipates to deliver in the early 2030s,” AUS CEO Ghizlane Badawi said. “The future total gate count at AUS and allocation of gates to each airline, as well as the total cost of the [expansion program], will be finalized and shared with the public in early 2026. This time frame coincides with our collaboration with the airlines to finalize these agreements, which are planned to go into effect on Jan. 1, 2026.”
AUS has said expansion will not be funded by taxpayers, but with airport cash reserves, current and future airport revenue, future revenue bonds and FAA grants. “AUS airlines are crucial stakeholders to the [expansion] program,” the airport stated. “Full program implementation relies on achieving full consensus with airline partners for funding and program definition.”
AUS handled 10.3 million passengers in the first half of 2025, down 4.5% year-over-year.
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