Phoenix Sky Harbor Seeks to Expand With $4.5 Billion West Terminal

26 October 2026

Phoenix Sky Harbor International Airport has announced detailed plans for a new $4.5 billion West Terminal that will add capacity for future growth and handle rising international traffic. The sprawling airport has not added a new terminal since 1990.

American Airlines, which serves over 40% of Phoenix Sky Harbor's total passengers, has been selected as the primary carrier for the West Terminal. The airport says this will create a "front door" for Phoenix’s international arrivals and departures. For now, the precise number of gates is still being determined, but the new terminal will be built to easily accommodate wide-body aircraft.

Destination PHX 2050

The West Terminal is part of a vision for Phoenix Sky Harbor called "Destination PHX 2050." The development program intends to guide future airport expansions over the next two decades. The 2040 vision includes the potential for over 60 million annual enplanements - almost 40% greater than today - and up to 70 gates.

"Destination PHX 2050 represents a continued investment in the airport’s capability while setting a standard for passenger experience beyond 2030," said acting airport director and chief executive officer at Phoenix Sky Harbor International Airport, Kevin Jordan.

The collaborative 2026 visioning process began in early 2026, with a design procurement process expected in 2027, construction to begin in late 2029, and the opening in late 2033. The terminal will sit on the west side of the airport, between Terminal 3 and Taxiway U.

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The West Terminal will reduce pressure on the airport's older, built-out terminals, Terminal 3 and 4. Terminal 4 opened in 1990 and currently accounts for over 60% of total departures, handling 30 million passengers a year. The airport plans to invest in upgrades for Terminal 4, including baggage system modernization, improved concessions, and infrastructure improvements.

The West Terminal remains an airport project, not just an American Airlines terminal. The airport says other small and medium-sized carriers still have significant options to grow in both the existing terminals and new space to be announced. The new terminal will be designed to support the diverse needs of travelers, from leisure passengers to business travelers.

A 2019 study found that Phoenix Sky Harbor International Airport contributed over $44 billion to Arizona’s economy. This long-term planning is meant to ensure Phoenix Sky Harbor is ready for record traffic and remains a world-class transportation hub in 2050.

The airport says the project will be funded through a combination of passenger facility charges, bonding, and airport funding, with no local tax dollars involved. It has not yet released design plans for public feedback, but projects the project's two-key budget may climb over $4.5 billion.