Phoenix Sky Harbor Names American Airlines for $4.5B Terminal

Phoenix Sky Harbor International Airport announced this week that American Airlines will be the anchor carrier for a brand-new West Terminal, the airport's first new terminal building since Terminal 4 opened back in 1990. The announcement, made September 21-22 alongside a broader planning framework the airport calls Destination PHX 2050, is a long-horizon project, but it signals real change for anyone who regularly connects through or flies out of one of the Southwest's busiest hubs. The numbers involved are substantial. Sky Harbor estimates the West Terminal at roughly $4.5 billion, to be funded through passenger facility charges, airport bonds and airport revenue rather than local tax dollars. A design procurement process is expected to start in 2027, with construction potentially beginning in late 2029 and the terminal opening targeted for late 2033. At full build-out, the airport expects the facility to eventually house more than 60 gates, built west of the current Terminal 3 in phases similar to how Terminal 4 itself was expanded over the decades. American was picked after what the airport called an extensive review of operational needs and cost. It is already Sky Harbor's dominant carrier, handling more than 40% of the airport's passenger traffic and flying over 20 million customers a year through Phoenix, with roughly 8,000 employees across Arizona. American CEO Robert Isom called Phoenix a critical part of the airline's network in a statement announcing the deal, and Phoenix Mayor Kate Gallego described the terminal as a game-changing investment in the region's economic future. Sky Harbor now handles about 140,000 passengers a day and is planning for growth toward 90 million annual passengers by 2050, roughly triple where it stands today. The bigger story for regional travelers may be what happens to the terminal American leaves behind. Terminal 4, now 36 years old, currently handles about three-quarters of Sky Harbor's passengers and is slated for hundreds of millions of dollars in modernization once American relocates. That freed-up space is where Southwest Airlines comes in. Southwest is Sky Harbor's second-largest carrier, carrying roughly a third of the airport's passengers, and together the two airlines account for close to three-quarters of all Sky Harbor traffic. Industry analysts who cover the deal expect Southwest to be the most likely beneficiary of American's departure, picking up gates and ramp space in Terminal 4 as American's current operation, including three cramped Admirals Club lounges and no dedicated Flagship business lounge, gets rebuilt around fewer, larger international-capable facilities elsewhere. None of this changes anything about booking a flight through Phoenix this year or next. The terminal will not open until 2033 at the earliest, and gate assignments for American, Southwest and Sky Harbor's other 22 airlines will keep shifting gradually rather than all at once. What is worth knowing now is the trajectory: Phoenix is positioning itself for meaningfully more international and long-haul flying over the next decade, and both of its dominant carriers are expected to have more room to grow rather than compete for the same aging gates. If you hold loyalty status or a co-branded credit card with either airline and fly through PHX often, that is a reason to keep an eye on Sky Harbor announcements over the next few years rather than assume the airport stays as it is. In the meantime, the practical advice for Southwest-region travelers passing through Sky Harbor stays the same as it would for any growing hub under construction. The airport is already busy, having pushed toward roughly 31 million passengers in 2026, and it saw about 100 flights delayed on September 21 alone amid normal fall weather and congestion. Build in extra connection time at PHX, particularly for international transfers through the current Terminal 4, and do not expect this announcement to translate into cheaper fares or easier connections anytime soon; if anything, a hub gearing up for major construction over the next several years is one where reliable nonstop options and loyalty perks are worth prioritizing over the lowest fare when you are choosing how to route a trip into or out of central Arizona. Sources Phoenix Sky Harbor Announces American Airlines as Primary Carrier for West Terminal, Unveils Destination PHX 2050 - City of Phoenix - https://www.phoenix.gov/newsroom/aviation-news/phoenix-sky-harbor-announces-american-airlines-as-primary-carrie.html Phoenix Sky Harbor names American Airlines as main carrier for future new terminal - KJZZ - https://www.kjzz.org/business/2026-09-22/phoenix-sky-harbor-names-american-airlines-as-primary-carrier-for-future-terminal American Airlines to be main carrier for new Sky Harbor terminal - AZFamily - https://www.azfamily.com/2026/09/21/american-airlines-be-main-carrier-new-sky-harbor-terminal/ American Airlines Is Moving To A New $4.5 Billion Phoenix Terminal-And Southwest Could Be A Big Winner, Too - View From The Wing - https://viewfromthewing.com/american-airlines-is-moving-to-a-new-4-5-billion-phoenix-terminal-and-southwest-could-be-a-big-winner-too/