US airport capital development spending reached a record $28 billion in fiscal year 2025, according to Airports Council International-North America's (ACI-NA) annual Capital Development Survey. That figure represents a 22% increase over fiscal year 2024 and shatters the previous record of $24.1 billion set in 2023.
The spending surge is driven by a simple mismatch: passenger traffic has recovered to pre-pandemic levels and continues to grow, but terminal infrastructure at many major airports was designed for traffic volumes that were exceeded years ago. The numbers tell a different story than the typical frustrated traveler's experience — airports are investing at historic rates, but the projects take years to complete while demand grows monthly.
Passenger Growth: The Engine Behind $28 Billion
According to the Federal Aviation Administration, US airports handled 981 million enplanements in 2025, exceeding the pre-pandemic record of 928 million set in 2019 by 5.7%. The Transportation Security Administration's checkpoint throughput data confirms the trend — TSA screened a single-day record of 3.2 million passengers on July 3, 2025.
FAA's Terminal Area Forecast projects US enplanements will reach 1.07 billion by 2030 and 1.18 billion by 2035, representing compound annual growth of 2.1%. This growth rate — modest compared to some international markets — translates to 200 million additional annual passengers over the next decade who need terminal gates, security checkpoints, baggage systems, and ground transportation connections.
The growth is concentrated at large hub airports. According to FAA data, the 30 largest US airports handle 70% of all passengers but occupy a fixed footprint that cannot easily expand. The result is congestion that manifests as gate shortages, security checkpoint wait times, and passenger facility overcrowding — all of which drive capital investment.
International passenger traffic is growing even faster than domestic. US international enplanements reached 113 million in 2025, up 14% from 2019, according to the Bureau of Transportation Statistics. International terminal facilities — which require customs and border protection processing, duty-free retail, and premium lounge space — are the most expensive airport construction on a per-square-foot basis.
The Mega-Projects: LAX, JFK, and O'Hare
Three airport programs account for a substantial share of the national total:
Los Angeles International Airport — $14 Billion
The LAX Landside Access Modernization Program and associated terminal improvements represent the largest airport construction program in US history at a combined $14 billion. The centerpiece is the Automated People Mover (APM), a 2.25-mile elevated train system connecting the terminal complex to a consolidated rental car facility, a new transit station, and remote parking structures.
The APM system, being built by a joint venture of Fluor, Balfour Beatty, Dragados, and Flatiron, includes six stations, 44 train cars manufactured by Alstom, and guideway structures spanning active airfield taxiways. The project has employed as many as 8,500 construction workers simultaneously, according to LAWA (Los Angeles World Airports).
Terminal renovations at LAX include the $1.73 billion Midfield Satellite Concourse (completed 2021), the $1.2 billion Terminal 1 modernization for Southwest Airlines, and the ongoing $2.6 billion Terminal 6 and Connector renovation being developed by American Airlines and LAWA.
JFK Airport New Terminal One — $9.5 Billion
The New Terminal One at John F. Kennedy International Airport is a $9.5 billion project to replace the aging Terminals 1 and 2 with a single 2.4-million-square-foot international terminal. It is the largest public-private partnership (P3) airport project in US history.
The New Terminal One Consortium — comprising Carlyle Aviation Partners, JLC Infrastructure, Ullico Infrastructure Fund, and Ferrovial — is financing, building, and will operate the terminal under a long-term lease with the Port Authority of New York and New Jersey.
Construction, led by a joint venture of Ferrovial, Turner Construction, and Tully Construction, began in 2022. Phase 1 (the arrivals and departures hall with 14 gates) is scheduled to open in 2027, with the full 23-gate complex completed by 2030. The project employs approximately 6,000 construction workers and has committed to 30% participation by Minority and Women-Owned Business Enterprises.
O'Hare International Airport — $8.5 Billion
Chicago's O'Hare 21 program is an $8.5 billion full-scale modernization that includes a new Global Terminal, expansion of Terminal 5, and a new satellite concourse connected by an underground tunnel system.
The Global Terminal, designed by Studio Gang Architects, will be a 2.2-million-square-foot facility replacing the existing Terminal 2. The Chicago Department of Aviation awarded the design-build contract to a joint venture led by Clark Construction and Clayco, with construction expected to begin in late 2026.
Terminal 5 expansion, already underway, adds 350,000 square feet of new gate area and is being built by Walsh Construction. The $1.3 billion project will add 10 new international gates, increasing O'Hare's international passenger capacity by 25%.
Beyond the Big Three: Major Projects Nationwide
The airport construction boom extends well beyond the largest hubs. According to ACI-NA data, significant terminal construction programs are underway or recently completed at:
Pittsburgh International Airport opened its $1.4 billion new terminal in September 2025, the first entirely new airport terminal built in the US since 2012 (when Terminal B at Dallas/Fort Worth was completed). The LEED Gold-certified terminal includes 14-foot floor-to-ceiling windows, geothermal heating and cooling, and a microgrid powered by natural gas and solar energy.
Salt Lake City International Airport completed its $5.1 billion phased redevelopment in 2024, replacing the entire terminal complex with a single-terminal, dual-concourse design serving 34 million annual passengers. The project, one of the largest airport programs ever undertaken at a non-hub airport relative to passenger volume, was delivered by a joint venture of Austin Industries, Holder Construction, and Big-D Construction.
Kansas City International Airport opened its $1.5 billion single terminal in February 2023, replacing three aging terminals. The Burns & McDonnell-led design-build-finance-operate-maintain project was the first US airport terminal delivered through a full-scale P3 structure.
Additional major projects in active construction or procurement include:
- Newark Liberty International Airport Terminal A replacement — $2.7 billion (completed January 2023) plus ongoing Terminal B modernization
- Portland International Airport main terminal expansion — $2.1 billion
- Tampa International Airport Airside D expansion — $1.3 billion
- Nashville International Airport new Concourse D — $1.4 billion
- Denver International Airport Great Hall renovation — $1.8 billion
- Dallas/Fort Worth International Airport Terminal F — $3.5 billion
Specialty Contractor Demand in Airport Construction
Airport construction creates unique demand for specialty contractors with specific capabilities and certifications. According to the AGC of America's Airport Construction Committee:
Airfield paving contractors must hold FAA P-401 hot mix asphalt and P-501 portland cement concrete certifications. Only approximately 320 contractors nationwide hold these certifications, according to the American Concrete Pavement Association, creating a supply constraint for runway and taxiway projects.
Baggage handling system (BHS) contractors are in particularly high demand. The three major BHS manufacturers — Vanderlande, Beumer Group, and SICK AG — each maintain approved installer lists. A modern BHS installation for a major terminal involves 15 to 25 miles of conveyor, individual carrier tracking systems, and explosive detection system integration, requiring specialized mechanical and controls technicians.
Security system integrators install access control, CCTV, perimeter intrusion detection, and passenger screening systems that must comply with TSA design standards. According to the Security Industry Association, airport security construction spending exceeded $1.8 billion in 2025.
Curtain wall and glazing contractors face enormous demand from the trend toward expansive glass terminal facades. The JFK Terminal One project alone requires 800,000 square feet of glass curtain wall. Lead times for custom unitized curtain wall systems have extended to 14 to 20 months, according to the National Glass Association.
FAA Airport Improvement Program and Federal Funding
Federal funding supports a significant portion of airport construction through several programs:
The Airport Improvement Program (AIP) distributes approximately $3.35 billion annually in formula and discretionary grants, funded by the Airport and Airway Trust Fund (which collects revenue from aviation excise taxes). The IIJA supplemented AIP with an additional $15 billion over five years, bringing annual AIP-equivalent funding to $6.35 billion during the IIJA period.
According to FAA data, AIP and IIJA airport funds have supported 3,200 projects at 530 airports since November 2021. The most common project types are runway reconstruction (28% of funding), taxiway improvements (19%), terminal apron rehabilitation (15%), and airport rescue and firefighting facility construction (8%).
The Passenger Facility Charge (PFC), capped at $4.50 per enplanement, generates approximately $3.8 billion per year for airport capital projects. Airlines have historically opposed PFC increases, but ACI-NA argues that the $4.50 cap, unchanged since 2000, has lost 45% of its purchasing power to inflation and should be raised to $8.50.
The FAA Terminal Program, created by the IIJA, allocated $5 billion specifically for terminal development projects. The first round of awards in 2022 funded 85 projects at airports of all sizes, from major hub terminal renovations to small airport terminal replacements costing under $10 million.
Construction Costs and Escalation
Airport construction costs are among the highest in the industry. According to Turner Construction's Building Cost Index, airport terminal construction costs averaged $850 to $1,400 per square foot in 2025, compared to $400 to $700 for standard commercial office construction.
The premium reflects several factors unique to airport construction:
Security requirements add 10 to 15% to construction costs. All workers, materials, and equipment entering the Airport Operations Area (AOA) must be badged and screened. Tool accountability programs require individual tracking of every tool brought on-site. Materials deliveries must be scheduled through airport security checkpoints, adding logistical complexity.
Operational constraints limit construction hours and methods. Most airport construction must be phased to maintain airline operations, requiring temporary facilities, phased utility relocations, and night-shift work that carries 15 to 25% wage premiums, according to BLS data.
Building systems complexity drives costs. Modern airport terminals include baggage handling systems, passenger boarding bridges, flight information displays, inline explosive detection systems, and integrated building management systems that are not present in typical commercial construction.
Code and resilience requirements add structural costs. Airports must meet FAA seismic standards that often exceed local building codes, blast-resistant design for certain areas, and progressive collapse resistance requirements that add structural steel and concrete.
The Technology Transformation
Modern airport terminal construction increasingly incorporates advanced technology systems that add construction scope and complexity:
Biometric processing systems — facial recognition for identity verification at check-in, security, and boarding — require integrated camera networks, server rooms, and fiber optic backbone infrastructure. According to the Customs and Border Protection agency, biometric exit capabilities have been installed at 41 airports and are expanding.
Autonomous vehicle readiness for ground transportation areas requires enhanced roadway geometry, communication infrastructure, and dedicated pickup zones. Terminal curbside designs now routinely include provisions for autonomous vehicle operations that are expected within the facility's 40-year design life.
Sustainability features including mass timber structures (as at the Portland International Airport expansion), solar panel arrays, geothermal systems, and rainwater harvesting systems add specialized construction scope. ACI-NA reports that 72% of US airports have adopted net-zero carbon goals, driving construction specification changes.
The Workforce Challenge
Airport construction faces acute workforce shortages compounded by the security requirements unique to airside work. According to TSA, obtaining a Security Identification Display Area (SIDA) badge requires a background check with a 30 to 45-day processing time. Workers with certain criminal history are permanently disqualified, and all badged workers must undergo fingerprinting and recurring vetting.
The badging requirement creates a structural labor constraint. According to LAWA, approximately 8% of construction workers who apply for SIDA badges are denied, and the processing delay means that mobilizing new workers onto an airport project takes 4 to 6 weeks longer than comparable non-airport work. These constraints favor larger contractors with established badged workforces and create barriers for smaller specialty firms.
Airport construction wages reflect these constraints. AGC data shows that airport construction workers earn a 12 to 18% premium over comparable non-airport construction positions, driven by the badging requirements, operational restrictions, and security protocols.
What Contractors Should Do Now
The $28 billion airport construction market favors contractors who take one specific preparatory step: begin the SIDA badging process for key personnel immediately. The 30 to 45-day processing time means contractors who wait until they win a bid lose 6 to 8 weeks of mobilization time. Pre-badging project managers, superintendents, and foremen at airports where you anticipate bidding work eliminates this delay and demonstrates operational readiness to airport authorities during prequalification. Contact your target airport's badging office directly — most will process contractor badges in advance of specific project awards for firms that can demonstrate legitimate business purpose.
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Frequently Asked Questions
How much is being spent on airport construction in 2026?
US airport capital development spending reached a record $28 billion in fiscal year 2025, according to ACI-NA, a 22% increase over the prior year. The largest programs are at LAX ($14 billion), JFK ($9.5 billion), and O'Hare ($8.5 billion). Federal funding through AIP and the IIJA contributes approximately $6.35 billion annually.
What is driving the airport construction boom?
US airports handled 981 million enplanements in 2025, exceeding the pre-pandemic record by 5.7%, according to the FAA. Passenger traffic is projected to reach 1.07 billion by 2030. Terminal facilities at many major airports were designed for lower traffic volumes, creating capacity constraints that require new construction and expansion.
What specialty contractors are most in demand for airport work?
Airfield paving contractors with FAA P-401/P-501 certifications, baggage handling system installers, security system integrators, and curtain wall/glazing contractors face the highest demand. Only approximately 320 contractors nationwide hold FAA airfield paving certifications, according to the American Concrete Pavement Association, creating a significant supply constraint.
