Phoenix Sky Harbor International Airport is moving forward with plans for a new West Terminal, a major component of its Destination PHX 2050 development program aimed at accommodating long-term passenger growth and expanding international air service.

The new terminal, which could cost approximately $4.5 billion, will be constructed on the west side of the airport between Terminal 3 and Taxiway U. It will be the airport's first new terminal since Terminal 4 opened in 1990.

American Airlines will serve as the primary carrier at the new facility. The airline currently accounts for more than 40% of passenger traffic at Phoenix Sky Harbor, carrying more than 20 million travelers annually through the airport.

The West Terminal is intended to accommodate growing domestic and international demand, including additional wide-body aircraft. Its design will be modular, allowing the airport to add concourses as passenger volumes increase. The number of gates and other design details have not yet been finalized.

The project is part of Destination PHX 2050, a long-range development program designed to prepare the airport to serve an anticipated 90 million annual passengers by 2050.

Planning and preliminary design work began earlier this year, with design procurement anticipated in 2027. Construction could begin in late 2029, with a potential opening in late 2033.

Funding will come from passenger facility charges, bonds and airport revenues, without the use of local tax dollars.

Meanwhile, Phoenix Sky Harbor is pursuing improvements to its existing facilities, including modernization of Terminal 4's baggage handling systems, concessions, building infrastructure and other passenger amenities. Additional projects include a new six-gate concourse at Terminal 3 and construction of Taxiway U to improve airfield efficiency.

The airport will host a West Terminal Industry Day on Nov. 17 to provide information about the project's scope, procurement strategy, construction phasing and opportunities for businesses to participate.