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American Airlines has been selected as the primary airline for the future West Terminal at 
Phoenix Sky Harbor International Airport (PHX). This will give the carrier a central role in the airport’s first new terminal construction since Terminal 4 opened in 1990. The project is intended to add capacity as Phoenix continues to experience passenger growth, while creating infrastructure for expanded domestic and international service.
The decision places American, already Phoenix’s largest airline, at the center of Sky Harbor’s long-term expansion strategy. The carrier accounts for more than 40% of the airport’s passenger traffic, serves more than 20 million customers through Phoenix annually, and operates more than 300 peak daily departures to more than 100 destinations. The West Terminal is expected to become an important gateway for international traffic and will be designed to accommodate additional widebody aircraft.
American Becomes Anchor Carrier
Phoenix selected American after what the Aviation Department described as months of analysis focused on operational requirements, community needs, and financial considerations. As the anchor tenant, American will have a significant presence in the new facility, although the airport has not yet finalized the complete airline assignments for the terminal. The relationship also extends a long history between the airline and the Arizona capital. American and its predecessors have served the city since 1930, and the carrier introduced the region’s first scheduled jet service in 1963 with the Boeing 707. Its current Phoenix operation has developed into one of the airline’s major hubs, connecting Arizona with destinations throughout North America, Hawaii, Europe, and other international markets.
American Chief Executive Officer, Robert Isom, said the new facility will support continued growth, global connectivity, and additional premium spaces for customers. The airline also employs about 8,000 people across Arizona, further tying its Phoenix operation to the region’s broader aviation economy.
“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” — American Airlines CEO Robert Isom.
Why Phoenix Needs Another Terminal
The West Terminal addresses a capacity constraint that has developed across Sky Harbor’s existing facilities. Terminals 3 and 4 are considered fully built out in terms of additional gates, while passenger numbers and aircraft sizes have continued to increase. The airport recorded more than 48 million passengers in 2023, and officials have been planning for additional capacity for several years.
The new facility will be constructed on the western side of the airport, between Terminal 3 and Taxiway U, near the sites formerly occupied by Terminals 1 and 2. Terminal 1 closed in 1990, followed by Terminal 2 in 2020, and both structures were subsequently demolished. The airport’s broader development strategy also includes improvements elsewhere on the property. Taxiway U (pictured above) is being developed to improve airfield efficiency, while a new six-gate concourse is under construction on the north side of Terminal 3. These projects are intended to expand operational capability before the West Terminal becomes available.
Construction Remains Years Away
Despite American’s selection, passengers will not see the new terminal open soon. Phoenix began a collaborative planning phase in 2026, expects to procure a design team in 2027, and could begin construction in late 2029. The airport currently identifies late 2033 as a potential opening, although the schedule remains subject to change.
The eventual size of the terminal has not been determined. Phoenix says the number of concourses and gates will be based on projected passenger demand for 2033, with a modular design intended to allow additional concourses as future requirements develop. The airport estimates the project could cost around $4.5 billion, although the final budget has not yet been established.
Funding is expected to come from passenger facility charges, bonds, and airport revenue, rather than local tax dollars. Meanwhile, Sky Harbor plans to invest hundreds of millions of dollars in Terminal 4, which currently handles more than 75% of the airport’s passengers. The combination of the existing terminal upgrades and eventual West Terminal should allow Phoenix to expand capacity without waiting for a single project to address all of its future needs.
