September 30, 2026

Sky Harbor Is Getting Its First New Terminal Since 1990, and American Airlines Is Moving In

By Juan Grimaldo, The Grimaldo Group | September 2026

Phoenix Sky Harbor International Airport just announced one of its biggest projects in decades. Here's what's planned, when it could happen, and why it matters for anyone living in or moving to the Valley.

What was announced

Sky Harbor has selected American Airlines as the primary carrier, or anchor tenant, for its future West Terminal. The airport says the choice followed months of analysis by the City of Phoenix Aviation Department.

The West Terminal will be the airport's first brand-new terminal since Terminal 4 opened in 1990. It will be built on the west side of the airport, between Terminal 3 and Taxiway U. Just to be clear, "West Terminal" refers to its spot on airport property, not the West Valley.

Why Sky Harbor needs it

The announcement came alongside Destination PHX 2050, the airport's long-range plan to guide future investments. Sky Harbor expects to serve about 90 million passengers a year by 2050.

A big focus of the new terminal is international travel. It's being designed to handle more wide-body aircraft, the larger planes used on long international routes, and to become the airport's main gateway for growing international traffic. The design will also be modular, so more concourses can be added as demand grows.

Why American?

American is already Sky Harbor's largest airline. It carries more than 40% of the airport's passengers, which works out to over 20 million travelers a year, and employs about 8,000 people across Arizona. According to KTAR, other airlines are expected to move into the Terminal 4 gates American eventually leaves, giving them room to grow too.

What happens to Terminal 4?

Terminal 4 is now 36 years old and handles more than 75% of the airport's passengers. Sky Harbor says it's investing hundreds of millions of dollars to modernize it. Upgrades include concessions, baggage systems, moving walkways, plumbing and electrical. More improvements are planned once American moves to the new terminal.

The timeline

This is a long-term project, and many details are still being worked out, including the final design and number of gates. Here's the current timeline from Sky Harbor:

  • Early 2026: Planning and visioning began

  • 2027: Design procurement expected

  • Late 2029: Construction could begin

  • Late 2033: Potential opening

The airport says the project will be paid for with passenger facility charges, bonds and airport funds, with no local tax dollars. Sky Harbor is also hosting a West Terminal Industry Day on November 4 to walk contractors and small businesses through the program and how they can take part.

What this means for the Valley

Airports shape where people choose to live and where companies choose to grow. More direct flights, especially international ones, make metro Phoenix easier to relocate to, easier to run a business from, and easier for remote workers who travel often. For the West Valley, Sky Harbor is a straight shot down I-10, so better air service adds to what already makes communities like Goodyear, Buckeye, Avondale and Litchfield Park attractive.

A terminal opening in 2033 won't change home prices tomorrow. But projects like this are part of the bigger picture of why people and employers keep choosing the Valley, and that long-term demand matters whether you're buying, selling or holding.

Juan Grimaldo | The Grimaldo Group at eXp Realty
(480) 365-8346 | juang@teamgrimaldo.com

Sources

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