Phoenix Sky Harbor International Airport (PHX) has announced that American Airlines will serve as the primary carrier at its planned West Terminal, marking a major milestone in the airport’s long-term expansion strategy as the region prepares for continued growth in passenger traffic and international connectivity.
The announcement coincides with the launch of Destination PHX 2050, a comprehensive capital investment program designed to guide the airport’s development as it prepares to accommodate an anticipated 90 million annual passengers by 2050.
The West Terminal will be constructed on the western side of the airport and will represent the first entirely new terminal built at Sky Harbor since Terminal 4 opened in 1990.
American Airlines, already Phoenix Sky Harbor’s largest carrier by passenger traffic, will become the anchor tenant of the future West Terminal. The airline currently accounts for more than 40% of the airport’s total passenger traffic and transports over 20 million customers through PHX annually.
The partnership is intended to support American’s continued expansion in Phoenix while providing additional capacity for the airport’s growing domestic and international operations.
Phoenix Mayor Kate Gallego described the project as a major investment in the region’s economic future, highlighting the airport’s role in supporting tourism, business opportunities and connectivity.
American Airlines CEO Robert Isom said Phoenix remains a critical part of the airline’s network. The carrier employs approximately 8,000 team members across Arizona and expects the new facility to support additional growth, employment opportunities and improved customer facilities.
The airline also highlighted the potential for new premium passenger spaces and stronger connections between Phoenix and international destinations.
Phoenix’s continued population and economic growth have increased demand for air travel, particularly international services.
A key objective of the West Terminal is to provide infrastructure that can accommodate this demand while supporting future airline expansion. The facility is expected to become a major gateway for the airport’s growing international traffic and will be designed to accommodate additional wide-body aircraft.
Although the final design and number of gates have not yet been determined, the project is expected to provide additional operational flexibility and capacity for future air service.
The airport said American Airlines’ selection followed months of analysis examining operational requirements, community needs and financial responsibility. Officials also emphasized that the decision is intended to create opportunities for all airlines operating at PHX to continue growing.
The West Terminal is one component of a wider capital investment program aimed at preparing Sky Harbor for future passenger demand while improving operational efficiency and the customer experience.
Other projects already underway include:
Terminal 4, which opened in 1990, currently handles more than 75% of all passengers at Phoenix Sky Harbor. Planned upgrades include improvements to concessions, the central plant, baggage-handling systems, moving walkways, plumbing and electrical infrastructure.
Following American Airlines’ eventual relocation to the West Terminal, the airport plans additional modernization work at Terminal 4 to improve its facilities and passenger experience.
Planning for the West Terminal began with a collaborative development phase earlier in 2026. The airport anticipates beginning its design procurement process in 2027.
While the schedule remains subject to development and procurement decisions, the current project timeline identifies the following potential milestones:
| Project milestone | Anticipated timing |
|---|---|
| Collaborative planning | Began in 2026 |
| Design procurement | 2027 |
| Potential construction start | Late 2029 |
| Potential terminal opening | Late 2033 |
The airport has not yet finalized the terminal’s design, gate count or complete construction scope.
Funding is expected to come from passenger facility charges, bonds and airport funding. Phoenix Sky Harbor stated that no local tax dollars will be used to finance the project.
Phoenix Sky Harbor plans to host a West Terminal Industry Day on November 4, bringing together industry participants to discuss the project’s delivery strategy and development requirements.
The event is expected to cover enabling projects, the initial operating scope, key facilities, construction packaging and phasing, procurement strategy and project delivery considerations.
Information will also be provided on opportunities for small businesses to participate in the project.
Further details and registration information are expected to be available through the airport’s Business Outreach events page.
With an annual economic impact exceeding $44 billion, Phoenix Sky Harbor is a major transportation and economic gateway for Arizona. The airport handles approximately 1,300 aircraft movements and more than 140,000 arriving and departing passengers on an average day.
The planned West Terminal, alongside ongoing improvements to existing facilities and airfield infrastructure, forms part of the airport’s strategy to accommodate long-term regional growth.
American Airlines’ selection as the primary carrier establishes an important partnership for the project, while the final design, construction scope and delivery schedule remain under development.
As Destination PHX 2050 advances, the West Terminal is expected to play a central role in shaping Phoenix Sky Harbor’s future capacity, international connectivity and passenger experience.
For project updates: Destination PHX 2050
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