Phoenix Sky Harbor is getting its first brand-new terminal since 1990, and American Airlines will be the anchor tenant. The airport has picked American to lead into the planned West Terminal, a roughly $4.5 billion complex slated to open in late 2033. American will move out of Terminal 4, where it currently handles more than 20 million passengers a year.
The numbers explain why this matters. In 2025, American carried 20.9 million passengers through Sky Harbor, a 40.5% share, with Southwest close behind at 17.2 million and 33.3%. Together the two carriers move nearly three-quarters of everyone at the airport. American's Phoenix hub dates back to America West and US Airways, and it's heavily a connecting operation — the airport says American accounted for 71% of connecting passengers, with Southwest at 27%. Anyone who has attempted one of the hub's advertised 25-minute connections knows the current setup is tight, and a terminal designed around American's flows is meant to fix that.
The new building will sit between Terminal 3 and the future Taxiway U, with a modular design that lets concourses be added as demand grows. It's part of a bigger picture: the airport's Destination PHX 2050 plan anticipates 90 million annual passengers, and a growing share of travellers are locals rather than connectors — 72% in 2025, up from 60% in 2009 — which means more curbside space, security lanes and baggage claim capacity are also on the agenda.
For American flyers, the headline improvement is premium space. Phoenix currently has no Flagship Lounge, and its three Admirals Clubs (above gates A7–A9, A19–A21 and B5–B7) are widely considered undersized. CEO Robert Isom has promised "much-needed new premium spaces" in the new terminal. In the meantime, American passengers can use Terminal 4's third-party options, including the Centurion, Escape and Chase Sapphire lounges. It's not yet clear whether similar card-issuer lounges will follow to the West Terminal — though they've become a genuine draw for connecting premium travellers.
There's a ripple effect for everyone else, too. American vacating Terminal 4 frees up a large block of gates, and Southwest looks best positioned to expand into them. The airport is also building a separate six-gate concourse at Terminal 3, planned to include a 10,000-square-foot lounge with an outdoor terrace and Camelback Mountain views.
Timeline-wise, planning runs through 2026, design from 2027 to 2030, and construction from around late 2029 to 2033. The airport will share phasing details on November 4 and publish its terminal program definition document in December. Gate assignments and even the terminal's name or number remain undecided.
If you connect through Phoenix or fly American in the Southwest, this is the long-term investment that should eventually mean better lounges, easier connections, new dining and shopping, and a Sky Train link. Just don't expect to enjoy it until the end of the decade. It slots alongside American's other big hub projects in Dallas, Los Angeles, Chicago and Charlotte.
Story via View from the Wing.
