Phoenix Sky Harbor International Airport has advanced planning for a new West Terminal priced at approximately $4.5 billion, the airport's first new terminal since Terminal 4 opened in 1990.

The facility will rise on the airport's west side between Terminal 3 and Taxiway U, under the Destination PHX 2050 long-range development program. The program prepares the airport to serve an anticipated 90 million annual passengers by 2050. American Airlines will serve as the primary carrier at the new terminal.

The airline's stake is substantial. American accounts for more than 40% of passenger traffic at Sky Harbor and carries more than 20 million travelers annually through the airport. Anchoring a $4.5-billion facility to a single dominant carrier mirrors hub-terminal arrangements at other large US airports and concentrates the project's traffic risk with one operator.

What does the terminal change for capacity?

The West Terminal is intended to absorb growing domestic and international demand, including operations by additional wide-body aircraft. Its design will be modular: the airport can add concourses as passenger volumes increase. Gate counts and other design details remain unfinalized.

The timeline is long. Planning and preliminary design work began earlier this year. Design procurement is anticipated in 2027, construction could begin in late 2029, and a potential opening is set for late 2033 — a schedule that keeps first concrete nearly five years away.

Funding will come from passenger facility charges (per-ticket fees levied at US airports), bonds and airport revenues. No local tax dollars will be used, the airport said.

Work continues on existing facilities

Sky Harbor is not waiting on the new terminal to add capacity. Current and planned projects include:

• Modernization of Terminal 4's baggage handling systems, concessions, building infrastructure and other passenger amenities
• A new six-gate concourse at Terminal 3
• Construction of Taxiway U to improve airfield efficiency

The six-gate Terminal 3 concourse and Taxiway U construction are the nearest-term capacity and efficiency measures ahead of the West Terminal's late-2033 opening window.

Industry Day set for Nov. 17

The airport will host a West Terminal Industry Day on Nov. 17. The event will cover the project's scope, procurement strategy, construction phasing and opportunities for businesses to participate — the first formal interface between the airport and potential contractors ahead of the 2027 design procurement.

With design procurement two years out and construction start four years beyond that, the Nov. 17 session will offer the first detailed view of how the airport intends to sequence a $4.5-billion build while its existing terminals continue handling more than 20 million American Airlines passengers each year.

By Priya Raman