AUS Secures $1.18 Billion in the Largest-ever City of Austin Bond Sale to Support Airport Expansion

AUSTIN, Texas – Austin-Bergstrom International Airport (AUS) has successfully completed an Airport System Revenue Bond sale, securing $1.18 billion in funding to advance critical infrastructure projects. The transaction marks the largest bond sale in the history of the airport and the City of Austin.

The funds will support near-term projects within the Airport Expansion and Development Program (AEDP), also known as the airport's Journey With AUS expansion program, a multibillion-dollar initiative designed to modernize facilities, increase capacity, and enhance the passenger experience.
 
“This successful bond issuance reflects the bond market’s strong confidence in the future of Central Texas and in the essential role Austin-Bergstrom International Airport plays in driving regional economic growth,” said Ghizlane Badawi, Chief Executive Officer of Austin-Bergstrom International Airport. “This milestone allows us to move forward with critical improvements that will expand capacity, enhance the traveler experience, and support the region’s economic vitality for decades to come.”
 
Central Texas has experienced sustained population and economic growth, fueled by expansion in the technology and manufacturing sectors and the region’s increasing global profile. Major international events, including South by Southwest, Formula One United States Grand Prix, and Austin City Limits Music Festival, continue to attract millions of visitors each year, further driving demand for air travel.
 
Originally designed to serve 11 million annual passengers, and with a current capability of serving an estimated 15 million annual passengers, AUS is on track to serve 22 million passengers in fiscal year 2026, far exceeding its original capacity. The AEDP will address these demands by expanding gate capacity, improving passenger processing areas, and upgrading critical airfield and utility infrastructure.
 
Planned improvements include a new 26-gate Concourse B and Tunnel, a new Arrivals and Departures Hall, an integrated baggage handling system, a 6-gate satellite Concourse M, expanded roadway access, additional surface parking, a new parking garage, a new Central Utility Plant, new midfield taxiways, and utility upgrades across the airport campus. These projects are driven by airline demand for additional gates and supporting infrastructure to accommodate current and future service.
 
The airport signed a new 10-year use and lease agreement with the airlines, effective January 1, 2026; backed by the airline commitments and financial protections under the new use and lease agreement, the airport issued the new revenue bonds to meet the capital needs of the AEDP. Despite broader market volatility, the bonds were well-received, attracting a diverse group of investors.
 
Airport revenue bonds remain a standard financing tool for large-scale aviation infrastructure projects. AUS anticipates returning to the bond market in the coming years, with plans to issue approximately $4.2 billion in additional bonds through 2030 to fund future phases of the AEDP.
 
Austin Aviation will continue to leverage a mix of funding sources, including airport revenues, cash reserves, and federal grants, to deliver the improvements needed to support the next generation of air travel in Central Texas. Airport revenue bonds are repaid over time using revenues generated by airport operations. As a self-sustaining enterprise within the City of Austin, AUS does not receive local taxpayer funding.
 
Visit the Journey With AUS expansion program website for more information about upcoming improvements and the latest updates on all projects.