The largest carrier at Phoenix Sky Harbor International Airport (above) is American Airlines, which has a 39.4% capacity share of the market.
Phoenix Sky Harbor International Airport (PHX) has confirmed it is progressing plans for a new terminal to help meet rising demand—although construction is not expected to begin until after 2030.
The airport handled a record 48.8 million passengers in 2023, marking a rise of 5.6% on the previous high set in 2019, and the gateway is expected to break the 50 million barrier this year. Capacity for the northern summer 2024 season is about 20% higher than 2019 levels.
“Phoenix Sky Harbor is busier than ever, which is why we’ll soon need a new terminal to accommodate our growth,” Phoenix Mayor Kate Gallego says. “The council and I are moving forward with plans to build a cutting-edge terminal at the airport’s west end. The new expansion is years in the making, and I am looking forward to the continued work to turn our shared vision into reality.”
The terminal forms part of PHX’s long-term Comprehensive Asset Management Plan, presented in 2019. The plan, updated in 2022, includes several near-term goals such as improving airfield efficiency with a north/south taxiway on the west side of the airport, adding a new north concourse at Terminal 3 and creating a post-security walkway between Terminals 3 and 4.
These projects are all underway—but, with a continued increase in passenger traffic and larger aircraft flying into PHX, the airport believes additional capacity will be needed.
The proposed new terminal—which would be PHX’s first since Terminal 4 opened in 1990—will be built on the west side of the airport campus near where the former Terminals 1 and 2 were located. Terminal 1 closed in 1990, and Terminal 2 closed in 2020. Both have subsequently been demolished. Funding for the project will come from passenger facility charges, bonds and airport investment.
PHX was the 35th busiest airport in the world by passenger traffic during 2023, according to Sabre Market Intelligence data, and the 14th busiest in the U.S. Passenger numbers during the first quarter of 2024 totaled about 13.1 million, equating to an increase of about 6.6% on the same period last year.
Overall summer 2024 capacity will be around 18.1 million departure seats—approximately 3 million higher than in 2019—led by PHX’s largest carrier, American Airlines, which has a 39.4% capacity share of the market.
However, although American’s capacity is set to be about 3.5% higher this summer compared with pre-pandemic levels, analysis of OAG Schedules Analyser data reveals that Southwest Airlines intends to operate 14.9% more seats than in summer 2019. Delta Air Lines’ capacity will also be up by 20.2%.
Additionally, ULCCs Frontier Airlines and Spirit Airlines have grown their respective operations significantly compared with pre-pandemic levels, while the likes of Allegiant Air, Breeze Airways and Flair Airlines have entered the market.
Air France is also set to begin seasonal service to PHX from May 23, offering three flights per week from Paris Charles de Gaulle using Boeing 787-9 aircraft. The French capital becomes the third European destination to be served nonstop from Phoenix, along with Frankfurt and London Heathrow. It is estimated that the new route will provide a $30 million annual economic boost to the Arizona city.
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