Sky Harbor Unveils Destination PHX 2050
PHX Terminal 3

Photo provided by Metro Phoenix Alliance.

Destination PHX 2050

Phoenix Sky Harbor International Airport selected American Airlines as the primary carrier for its future West Terminal, marking a major step in the airport’s long-term expansion. The terminal will rise on the airport’s west side and become Sky Harbor’s first new terminal since Terminal 4 opened in 1990. American, Phoenix’s largest airline by passenger traffic, currently serves more than 40% of Sky Harbor passengers and carries more than 20 million customers through the airport each year. The West Terminal will support growing domestic and international demand, accommodate more wide-body aircraft, and serve as a key gateway for international travelers.

The project is part of Destination PHX 2050, Sky Harbor’s development program designed to prepare the airport for an anticipated 90 million annual passengers by 2050. Airport officials are still determining the terminal’s design and number of gates. They expect to begin the design procurement process in 2027, potentially start construction in late 2029, and open the terminal in late 2033. Passenger facility charges, bonds, and airport funds will finance the project without using local tax dollars.

Meanwhile, Sky Harbor continues to invest hundreds of millions of dollars in Terminal 4 and other airport improvements. Current projects include upgrades to baggage systems, concessions, utilities and moving walkways, along with Taxiway U and a new six-gate concourse at Terminal 3. American’s eventual move to the West Terminal will also create opportunities to further modernize Terminal 4 and provide additional room for airlines to grow.

Phoenix Sky Harbor International Airport announced today that American Airlines will be the primary carrier operating from the airport’s future West Terminal, marking a significant milestone in the development of the new facility and the future of air travel in Phoenix. The announcement comes as Phoenix Sky Harbor unveils Destination PHX 2050, a comprehensive development program that will guide the airport’s future capital investments, including the West Terminal, as America’s Friendliest Airport ® prepares to serve an anticipated 90 million passengers by 2050 while also continuing to elevate the passenger experience.

“Phoenix Sky Harbor is a powerful economic engine for our state, and it’s the gateway for business opportunity and tourism,” Mayor Kate Gallego said. “The West Terminal is a game-changing investment in our economic future, and will help us continue to welcome travelers with best-in-class service, set a new standard for the passenger experience, and meet the needs of our growing community. I’m looking forward to working with American Airlines as our anchor tenant in this exciting endeavor.”

The new terminal will be built on the Airport’s west side. It will be the first new terminal construction since Terminal 4 opened in 1990.

Phoenix’s continued growth has resulted in the area seeing more demand for air service, especially international service. A key goal of the new terminal is to optimize future domestic and international growth. The new terminal will become the Airport’s front door for Phoenix’s growing international traffic and will be designed to accommodate additional wide-body aircraft. American Airlines is Phoenix’s largest carrier by total passenger traffic, serving more than 40%.

“Phoenix is a critical part of American’s network and we’re excited to continue to invest in the airport and this region’s future,” said American Airlines CEO Robert Isom. “American is Phoenix’s largest airline, carrying more than 20 million customers through Sky Harbor annually and employing 8,000 team members across Arizona, and we are proud to partner with the City of Phoenix and Sky Harbor on a vision that will support continued growth, create jobs, strengthen global connectivity and deliver an even better experience for our customers with much-needed new premium spaces. The future West Terminal will further connect Phoenix to destinations around the world, strongly positioning the city to lead the next generation of travel by driving economic opportunity, tourism, and global business connections for the region.”

The selection of American to move to the new terminal was the result of extensive research on what would best meet the operational needs of the airport to support the community while being fiscally responsible. The selection provides an opportunity for all airlines at PHX to continue to grow and serve the Phoenix community and all of Arizona.

“After completing months of careful analysis, the Aviation Department selected American Airlines as the anchor tenant for this new West Terminal,” said Aviation Director Chad Makovsky. “We look forward to working with American and all airlines at Sky Harbor to ensure we deliver thoughtful, affordable, and operationally efficient facilities that continue to elevate the passenger experience while ensuring we are well prepared to meet the region’s future air travel demands.”

The Aviation Department is also investing hundreds of millions of dollars in the 36-year-old Terminal 4, which currently handles more than 75% of all passengers at the airport. Improvements include upgrades to the concessions program, central plant, baggage handling systems, moving walkways, plumbing, and electrical systems. With American’s eventual move to the West Terminal, the airport is committed to making additional improvements to modernize the facility and enhance the customer experience.

Details of the design and number of gates at the future terminal are still being determined. Earlier this year, a collaborative planning phase for the terminal began. A design procurement process is anticipated in 2027. Construction could potentially begin in late 2029 with an opening in late 2033. The project will be funded with passenger facility charges, bonds, and airport funding. No local tax dollars will be used.

On November 4, Phoenix Sky Harbor will bring together the industry to share the vision for the new West Terminal and how it will be delivered. The West Terminal Industry Day will provide attendees with an understanding of the program, including enabling projects, Day One scope, key facilities, packaging and phasing approach, procurement strategy and delivery considerations. The event will also include information about how small businesses can participate. Additional details along with registration information will soon be available at skyharbor.com/airport-business/business-outreach/events/.

The future West Terminal is part of Phoenix Sky Harbor’s ambitious capital investment program designed to guide the airport into the future. Projects currently already underway include Taxiway U, a north/south taxiway on the westside of the airport which will increase airfield efficiency; and a new, six-gate concourse on the north side of Terminal 3.

To stay up to date with information about the future West Terminal, visit destinationphx2050.com.

Phoenix Sky Harbor International Airport, America’s Friendliest Airport®, has an annual economic impact of more than $44 billion. On an average day, approximately 1,300 aircraft and more than 140,000 passengers arrive at and depart from Phoenix Sky Harbor. PHX is funded with airport revenue. No tax dollars are used to support the airport.

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About PHX Sky Harbor Airport

Phoenix Sky Harbor International Airport stands as one of the nation’s busiest and most impactful airports. It serves more than 140,000 passengers daily and supports over 1,000 flights each day. The airport drives a powerful economic engine, generating about $121.5 million in daily impact and more than $44.3 billion annually.

The City of Phoenix owns and operates Sky Harbor. It acquired the airport on July 16, 1935, for $100,000—an early investment that helped shape the region’s long-term growth and connectivity.

Sky Harbor handled more than 52 million passengers in 2024, reflecting the rapid expansion of Metro Phoenix. To meet rising demand, the airport continues to evolve. Planned upgrades include expanded terminal space, additional parking, improved roadways, airfield enhancements, and faster, more efficient movement of passengers and aircraft. These long-term efforts are guided by the airport’s comprehensive Airport Development Plan.

About American Airlines

American Airlines connects the United States to destinations around the world, operating more than 6,000 daily flights to over 350 destinations in over 60 countries and serving 200 million customers each year. The airline traces its roots to a Midwestern U.S. air mail carrier founded in 1926 and celebrates its centennial in 2026. Today, approximately 130,000 aviation professionals support its global operations. Throughout its history, American has helped shape commercial aviation by introducing the first scheduled air cargo service, airport lounge and airline loyalty program. American also helped found the oneworld alliance, whose member airlines serve more than 900 destinations worldwide.

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