Austin airport secures $1.18 billion bond sale for expansion program
The sale means the airport will have additional cash on hand
“This successful bond issuance reflects the bond market’s strong confidence in the future of Central Texas and in the essential role Austin-Bergstrom International Airport plays in driving regional economic growth,” airport CEO Ghizlane Badawi said.
Initial projects, including some that are already completed, were funded with a $150 million line of credit. The bond revenue will repay that credit and fully fund the new Yellow Garage and midfield taxiways. It will also partially fund several other projects including a new arrivals and departures hall and a second concourse.
The bonds are backed by airport revenue and long-term airline commitments included in a 10-year agreement signed in January.
Airport officials expect to issue $4.2 billion more in bonds through 2030 to fund the rest of the expansion program. Airport revenue, cash reserves and federal grants are also supporting the program, which will add 32 new gates to the terminal.
Dallas-based Southwest Airlines is expected to anchor the new Concourse B with up to 20 gates under the new contract. Delta Air Lines will take over the existing terminal space, which will become Concourse A, and control 15 gates. Southwest and Delta have both signaled confidence in the Austin market, both announcing forthcoming crew bases in the city.
The expansion comes as passenger traffic surges at Austin-Bergstrom, driven largely by growth in the city’s technology sector and major events like the Formula One United States Grand Prix.
The airport set daily and monthly passenger records in October and served nearly 22 million passengers in 2025. Originally designed to handle 11 million passengers, its current capacity is roughly 15 million.
