Sioux Falls Regional Airport will open a new concourse in mid- or late June 2027, bringing its total gate count to 12 and closing out what Executive Director Dan Letellier calls a "truly generational project."

The expansion responds to sustained demand. Passenger traffic at the South Dakota airport has grown roughly 3.5% annually over the past 25 years, and Letellier expects that trend to continue as new residents move into the Sioux Falls area. The airport has operated while construction proceeds alongside record passenger volumes.

The gate construction itself should finish within a few months, but the project will not end when the doors open. A new restaurant and bar area plus additional seating will follow, keeping contractors on site for another 8 to 10 months beyond the terminal's opening, according to Letellier.

Three further capital projects are already on the airport's list. Letellier identified a new customs facility and federal inspection services area, a new operations center, and a replacement of the existing terminal apron, which he said has reached the end of its useful life.

Funding gap ahead

The initial construction project is fully funded. The follow-on work is not. Letellier put the cost of the new projects at around $30 million, and the airport has approached the South Dakota Aeronautics Commission for help.

That request runs into an existing policy barrier: the commission currently does not fund terminal-related projects. Letellier said the airport has asked commissioners to form a subcommittee and visit both Sioux Falls and Rapid City to review the proposed projects firsthand before deciding whether additional state funding is possible.

"Let them decide if there's some additional funding that they can put together," Letellier said.

The stakes are practical rather than symbolic. A customs and FIS facility would give Sioux Falls the capability to process international arrivals, a capacity the airport currently lacks. The apron replacement addresses deferred infrastructure that supports the very gates the airport is about to open. The operations center would consolidate functions that will grow with the expanded terminal.

Growth pressure

The timing matters for the airport's carriers. A 3.5% annual growth rate compounded over 25 years has roughly doubled passenger volumes since the late 1990s, and the additional gates represent the first meaningful capacity increase the terminal has seen in years. Eight to 10 months of post-opening construction means passengers and airlines will navigate an active work zone well into 2028 before the full terminal program, including concessions, is complete.

For now, the funded project is on schedule. Whether the $30 million in unfunded work follows on the same timeline depends on a state commission that has never funded terminal projects — and on whether a site visit to Sioux Falls changes that policy.