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American Airlines Will Anchor Sky Harbor’s New West Terminal — Here’s What Valley Residents Need to Know

Phoenix Sky Harbor is building its first new terminal in nearly forty years, and Valley travelers will feel the difference long before it opens.

A modern multi-story airport terminal building with extensive glass curtain walls and a wide cantilevered roof overhang, photographed at dusk with dramatic storm clouds overhead, desert landscaping including saguaro cacti and palm trees in the foreground, and an air traffic control tower visible to the left.
Phoenix Sky Harbor International Airport exterior at dusk — the airport's future West Terminal is targeted to open in late 2033, making it the first new terminal in nearly 40 years. (InsideTheValley.com)

The short version

  • The West Terminal targets late 2033, costs an estimated $4.5 billion, and is funded by airport revenue — not taxes.
  • American Airlines carries 20 million Sky Harbor passengers per year and holds 40%+ of total traffic.
  • Taxiway U and a new 6-gate Terminal 3 north concourse are already under construction on the airport's west side.
  • American will leave Terminal 4, potentially opening space for Southwest Airlines to expand.
  • A West Terminal Industry Day is scheduled for November 4, including small business participation.

Phoenix Sky Harbor International Airport has named American Airlines as the primary carrier for its future West Terminal. The new facility targets a late 2033 opening. It will be the airport’s first new terminal in nearly 40 years. American already handles more than 40% of Sky Harbor’s total passenger traffic.

Your next flight — and your drive to the airport — are both going to change

If you fly American out of Sky Harbor today, you board from Terminal 4. By late 2033, that changes. American will move into an entirely new West Terminal built to handle more international flying and larger aircraft. That means more nonstop options to destinations that aren’t on your current route map.

The move reshuffles things for everyone else too. When American leaves Terminal 4, it opens room for carriers like Southwest Airlines to expand their own gate count. More gates generally mean more competition and more flight choices — good news whether you fly American or not.

On the ground, expect years of visible construction near Sky Harbor Boulevard and the airport’s west side well before the terminal opens. The project is large enough that road and airfield work alone will be hard to miss on your drives to the airport.

Sky Harbor already moves about 140,000 passengers per day. It drives more than $44 billion in annual economic impact across the Valley. The West Terminal is the airport’s answer to growth that isn’t slowing down.

What was announced — and where the terminal fits on the map

Phoenix Sky Harbor announced American Airlines as the anchor carrier for the West Terminal. The announcement came alongside the unveiling of Destination PHX 2050. That is a long-range development program with a goal of 90 million annual passengers by 2050.

The West Terminal will sit on the airport’s west side, between Terminal 3 and Taxiway U. If you flew Sky Harbor before 2000, you know that footprint: it’s roughly where the former Terminals 1 and 2 once stood. Long-time Valley residents have a ready geographic anchor for exactly where this new building goes.

Aerial view of Phoenix Sky Harbor International Airport showing Terminal 3 road signage, the air traffic control tower, multilevel roadway interchanges, a light rail train on an elevated guideway, and the Phoenix downtown skyline in the background.

An aerial view of Phoenix Sky Harbor International Airport, showing Terminal 3 and the control tower. The new West Terminal will be built on the airport’s west side. That is near where former Terminals 1 and 2 once stood. (InsideTheValley.com)

Who pays for it — and it is not your property taxes

This is the question most Valley residents don’t think to ask, and every other outlet skips the answer. Sky Harbor is funded entirely through airport revenue and passenger facility charges, plus bonds backed by those same revenue streams. Not one dollar comes from City of Phoenix property taxes or state tax dollars. If you never set foot on a plane, this project does not appear on your tax bill.

That said, the final cost and funding mix aren’t locked in yet. The current estimate is about $4.5 billion. The airport has stated that both the final price and the specific funding sources are still being worked out.

Construction already underway: Taxiway U and the Terminal 3 north concourse

You don’t have to wait until 2033 to see work happen. Two enabling projects are already underway on the airport’s west side right now.

First is Taxiway U, a new north-south taxiway built to increase airfield efficiency on the west side. Second is a new six-gate concourse on the north side of Terminal 3. Both projects lay the groundwork for the West Terminal. Valley residents and airport workers will see this construction activity throughout the buildout years.

An American Airlines narrow-body jet taxiing on an airport apron past a modern terminal building with sawtooth roofline skylights.

An American Airlines jet taxis past a terminal building at Sky Harbor. American carries more than 20 million customers through the airport each year and employs 8,000 team members across Arizona. (InsideTheValley.com)

American Airlines at Sky Harbor: the numbers behind the anchor choice

American is Phoenix’s largest airline. It carries more than 20 million customers through Sky Harbor every year and accounts for more than 40% of the airport’s total passenger traffic. The airline employs 8,000 team members across Arizona. Those numbers explain why the airport built the new terminal around American rather than the other way around.

November 4 Industry Day — and what it means if you run a small business

Phoenix Sky Harbor is holding a West Terminal Industry Day on November 4. The event will share the vision for the new terminal. It will also explain how the project will be delivered, including opportunities for small business participation in construction.

If you own or run a small business in the Valley and have any interest in airport contracting, this is the event to watch. It is one of the earliest public windows into how the project will be structured and who can compete for work.

November 4 Industry Day, then years of groundwork before 2033

The West Terminal Industry Day on November 4 is the next major milestone you can put on your calendar. After that, the airport will move through procurement, design finalization, and phased construction. Taxiway U and the Terminal 3 north concourse will be the visible near-term activity. The larger terminal plans will take shape behind them.

The opening target is late 2033. Between now and then, the airport’s west side will be the most active construction zone in the Valley. Plan extra time on your drives to the airport as that work ramps up.

For more on how major Valley projects are reshaping the region, see our coverage of the SEMICON West permanent move to Phoenix and the Algodón Center 665-acre development near Loop 101.

Common questions

When will the new Sky Harbor West Terminal open?

The West Terminal is targeted to open in late 2033. That makes it the airport's first new terminal in nearly 40 years.

How much will the Sky Harbor West Terminal cost?

The current estimate is about $4.5 billion. The airport has stated that the final project cost and specific funding sources have not yet been determined.

Will my taxes pay for the new Sky Harbor terminal?

No. Phoenix Sky Harbor is funded entirely through airport revenue, passenger facility charges, and bonds backed by those revenue streams. No local property tax dollars are involved.

Where exactly will the West Terminal be built?

The West Terminal will be built on the airport's west side, between Terminal 3 and Taxiway U — roughly where the former Terminals 1 and 2 once stood.

What happens to American Airlines in Terminal 4?

American will relocate out of Terminal 4 and into the new West Terminal when it opens. That move frees up gates in Terminal 4 for other carriers.

Will Southwest Airlines get more gates because of the new terminal?

Possibly. When American leaves Terminal 4, it creates room for carriers such as Southwest Airlines to expand their gate count there. No formal agreement has been announced.

What is Destination PHX 2050?

Destination PHX 2050 is Phoenix Sky Harbor's long-range development program. Its goal is to prepare the airport to serve 90 million annual passengers by the year 2050.

What is the Sky Harbor West Terminal Industry Day on November 4?

It is an event hosted by Phoenix Sky Harbor to share the vision for the West Terminal and explain how the project will be delivered, including small business participation opportunities in the construction process.

What construction is happening at Sky Harbor right now?

Two enabling projects are already underway: Taxiway U, a new north-south taxiway on the airport's west side, and a new six-gate concourse on the north side of Terminal 3.

Why was American Airlines chosen for the new terminal?

American is Phoenix's largest airline, carrying more than 20 million customers through Sky Harbor each year and accounting for more than 40% of the airport's total passenger traffic.

Aaron Dotterer
Aaron Dotterer
REALTOR® · Dott Real Estate Group, Real Broker

Firefighter-EMT and licensed REALTOR® living in Eastmark. I cover what actually changes for residents when the Valley builds.

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