PHOENIX- American Airlines (AA) has been selected as the anchor carrier for the planned West Terminal at Phoenix Sky Harbor International Airport (PHX), a project estimated to cost $4.5 billion and targeted to open in late 2033.
American Airlines is expected to move its Phoenix operations from Terminal 4 into the new facility, which will be designed to support hub growth, international services, larger aircraft, and improved passenger processing.
American to Anchor Phoenix’s New West Terminal
Phoenix Sky Harbor International Airport (PHX) has selected American Airlines as the primary carrier for its planned West Terminal, marking a major step in the airport’s long-term expansion strategy.
The new terminal will be located between the existing Terminal 3 and the planned Taxiway U. It will become the first entirely new terminal at Phoenix Sky Harbor since Terminal 4 opened in 1990.
The project is currently estimated at approximately $4.5 billion, with the airport targeting an opening in late 2033. The final terminal name, terminal number, and initial gate allocation have not yet been determined.
The planned facility is expected to give American a modern operating base while creating additional capacity elsewhere at the airport for other carriers.
American Leads Phoenix Passenger Traffic
American has a substantial presence at Phoenix Sky Harbor, where its hub developed through the airline’s history with America West and US Airways.
According to Phoenix Sky Harbor’s full-year 2025 passenger statistics, American carried 20,893,285 passengers at the airport, representing 40.5% of total passenger traffic.
| Airline | 2025 Passengers | Airport Share |
|---|---|---|
| American Airlines | 20,893,285 | 40.5% |
| Southwest Airlines | 17,201,906 | 33.3% |
| Delta Air Lines | 3,657,003 | 7.1% |
| United Airlines | 3,216,812 | 6.2% |
| Frontier Airlines | 2,304,078 | 4.5% |
| Alaska Airlines + Hawaiian Airlines | 1,928,792 | 3.7% |
| All other airlines | 2,416,773 | 4.7% |
| Total | 51,618,649 | 100.0% |
Southwest Airlines is the second-largest carrier at the airport, handling 17,201,906 passengers and a 33.3% share.
Together, American and Southwest accounted for nearly three-quarters of all Phoenix Sky Harbor passengers in 2025.
American’s importance is even greater when connecting traffic is considered. Phoenix Sky Harbor’s bond disclosure reported that American accounted for 71% of connecting passengers during fiscal 2023-2024, while Southwest represented 27%.
That concentration makes the new West Terminal particularly important to American’s hub operation, View from the Wing reported.
New Terminal Designed for Hub Growth
The West Terminal will use a modular design that allows the airport to add concourses as demand increases.
The approach gives Phoenix Sky Harbor greater flexibility as passenger volumes grow instead of requiring the airport to build the entire terminal complex at once.
The facility is expected to include new gates, passenger-processing areas, dining and retail space, lounges, and improved connections to the airport’s PHX Sky Train system.
The international focus is another important element. Additional terminal capacity should give Phoenix greater flexibility to accommodate long-haul aircraft and international passengers connecting to American’s domestic network.
American CEO Robert Isom said the airline plans to continue investing in Phoenix and described the new facility as an opportunity to provide customers with new premium spaces.
American currently employs approximately 8,000 people across Arizona, according to the airline.
Destination PHX 2050 Sets Larger Growth Target
The West Terminal is part of the broader Destination PHX 2050 program, which outlines a long-term vision for Phoenix Sky Harbor.
The airport’s planning documents anticipate the possibility of handling approximately 90 million passengers annually in the future.
Passenger patterns have also changed significantly. Phoenix planning data shows that 72% of passengers in 2025 either began or ended their trips in Phoenix, compared with 60% in 2009.
That shift increases the importance of facilities beyond aircraft gates.
More local passengers require additional curb capacity, check-in facilities, security screening, baggage claim infrastructure and other passenger-processing systems.
American’s Move Could Open Space for Southwest
American’s eventual departure from Terminal 4 could create substantial opportunities for changes across the airport.
Phoenix Sky Harbor has not yet announced the final allocation of Terminal 4 gates after American moves into the West Terminal.
Southwest could be positioned to benefit from additional capacity, given its large Phoenix operation and second-place position in the airport’s passenger rankings.
The airport is also developing a separate six-gate expansion at Terminal 3. That project provides another source of capacity as Phoenix prepares for long-term passenger growth.
The combined projects could allow the airport to reorganize airline operations while expanding overall capacity.
New Premium Facilities Planned for American
American’s current Phoenix facilities include three Admirals Clubs located above gates A7-A9, between gates A19-A21, and above gates B5-B7.
The airline does not currently operate a Flagship Lounge at Phoenix Sky Harbor.
The existing lounges have faced capacity and investment limitations as American’s Phoenix operation has expanded. The new West Terminal is expected to provide an opportunity for larger and more modern premium facilities.
Phoenix Sky Harbor also has third-party lounges, including the American Express Centurion Lounge, Escape Lounge, and Chase Sapphire Lounge in Terminal 4.
The airport has not yet confirmed which third-party lounge operators will occupy space in the future West Terminal.
Third-party lounges can also contribute to the attractiveness of a hub by giving connecting and premium passengers additional options without requiring the airline to operate every lounge facility itself.
West Terminal Construction Timeline
Phoenix Sky Harbor has outlined a multi-year development schedule for the project.
| Work | Current Timing |
|---|---|
| Planning | 2025-2026 |
| Design procurement | 2027 |
| Design | 2028-2030 |
| Construction | 2029-2033 |
| Opening | Targeting late 2033 |
Construction could begin in late 2029, subject to the project’s final development schedule.
Before construction can begin, Phoenix Sky Harbor will need to relocate existing cargo, parking, operations, and maintenance facilities from the West Terminal development area.
The airport plans to provide additional information about the project’s initial plans and phasing on November 4, followed by the release of its terminal program definition document in December.
Phoenix Airport Expansion Reshapes Airline Capacity
The West Terminal represents a major long-term investment in one of American Airlines’ largest hubs.
For American, the project provides the opportunity to consolidate and expand its Phoenix operation in a purpose-built facility with additional international and premium capabilities.
For Phoenix Sky Harbor, the project provides new passenger-processing capacity while creating opportunities to reorganize existing terminals and accommodate future airline growth.
The airport’s broader expansion program also includes the Terminal 3 North project and longer-term plans under Destination PHX 2050.
With passenger traffic already exceeding 51.6 million annually in 2025, the airport is planning infrastructure around continued growth and a changing mix of local and connecting passengers.
The West Terminal is therefore not simply a replacement for American’s existing facilities. It is a central component of Phoenix Sky Harbor’s long-term plan to expand capacity, improve passenger facilities, and support the continued development of the airport as a major U.S. connecting hub.
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