The South Terminal at Austin-Bergstrom International Airport is now officially closed, marking a major step in the airport’s ongoing expansion plans.
Airport officials say the closure is part of a broader effort to consolidate operations and make room for future development, including new concourses and expanded infrastructure. The South Terminal, which primarily served low-cost carriers, will eventually be demolished to accommodate those improvements.
City leaders say bringing all airline operations under one roof will create a more streamlined experience for passengers, with centralized access to ticketing, security, and amenities.
The closure comes after years of legal and financial battles between the City of Austin and the terminal’s former operator, LoneStar Airport Holdings LLC.
The South Terminal originally operated under a long-term lease agreement with LoneStar, which had invested millions into renovating and running the facility. When the city moved to reclaim the terminal to advance its airport expansion plans, it attempted to acquire the lease through eminent domain.
That move sparked a legal fight, with LoneStar filing lawsuits alleging breach of contract and disputing the city’s initial valuation of the property.
The dispute ultimately ended in 2023 when the Austin City Council approved an $88 million settlement to take control of the terminal and terminate LoneStar’s lease.
The settlement cleared the way for the airport’s long-term expansion plans, which aim to address rapid growth and increasing passenger demand.
The South Terminal first opened in 2017 as a smaller, separate facility designed for ultra-low-cost airlines such as Allegiant and Frontier. Its closure marks the end of a relatively short but significant chapter in the airport’s development.
Airport officials say the focus now shifts to future projects that will expand capacity and improve operations at Austin-Bergstrom, as the city continues to experience record growth in air travel.
