Route Development
LAX Begins Terminal 5 Overhaul Ahead of 2028 Olympics
LAX starts demolition and rebuild of Terminal 5 as part of $30B upgrade for the 2028 Olympics, relocating airlines during construction.

LAX Accelerates Modernization with Terminal 5 Overhaul for 2028 Olympics
Los Angeles International Airport (LAX) is embarking on one of its most ambitious projects to date: the complete demolition and reconstruction of Terminal 5. This significant undertaking is a cornerstone of a massive $30-billion capital improvement program aimed at transforming the airport into a world-class facility ahead of the 2028 Olympic and Paralympic Games. The closure, which is slated to begin on October 28, marks a pivotal moment in the airport’s ongoing evolution, promising a state-of-the-art travel experience for millions of passengers. The project underscores a broader commitment to modernizing LAX, addressing long-standing infrastructure challenges and preparing for a global spotlight.
The current Terminal 5, which opened in 1988, has been described as outdated and inefficient, with limited space for passengers. Its reconstruction is not merely a renovation but a complete teardown, paving the way for a facility designed to meet the demands of modern air travel. This move is part of the Landside Access Modernization Program (LAMP), a collection of projects designed to enhance accessibility and operational efficiency across the airport. As Los Angeles prepares to host the Olympics, the pressure is on to deliver an airport that is not only functional but also leaves a lasting positive impression on international visitors. The Terminal 5 project is a critical piece of this larger puzzle, representing one of the final major infrastructure pushes before the games.
The decision to move forward with such a large-scale project involves complex logistical planning, particularly concerning the relocation of major airlines. American Airlines, JetBlue, and Spirit Airlines, the primary tenants of Terminal 5, will be temporarily moved to other terminals to ensure that flight operations continue with minimal disruption. Airport officials have been working closely with these carriers to manage the transition, though travelers are advised to allow for extra time when flying during this period. The project’s timeline is ambitious, with demolition and a two-year construction phase planned to conclude just before the Olympic opening ceremonies on July 14, 2028.
Navigating the Transition: Airline Relocations and Passenger Impact
The temporary closure of Terminal 5 necessitates a carefully orchestrated relocation of its airline tenants. The process began on October 21, with JetBlue moving its approximately 20 daily departures to Terminal 1, where it will share space with Southwest Airlines. The following day, Spirit Airlines relocated its check-in services to Terminal 2, with its 15 daily flights operating out of the new Midfield Satellite Concourse (MSC) South. Finally, on October 28, American Airlines, the second-largest carrier at LAX, will consolidate its operations in Terminal 4 and the Tom Bradley International Terminal.
To accommodate the displaced flights and mitigate congestion, LAX is leveraging its newest facilities. The recently opened MSC South adds over 150,000 square feet and eight new gates, providing much-needed capacity during the construction period. This new concourse is a key element in the airport’s strategy to maintain a smooth passenger flow while one of its main terminals is out of commission. Despite these measures, airport officials are urging passengers flying with the affected airlines to be proactive, check their terminal assignments before arriving at LAX, and allow for additional travel time.
The broader context of these changes is the airport’s $30-billion overhaul, which includes several other major projects running concurrently. Among these is the development of an automated people mover, intended to connect terminals with the Metro system and a new consolidated rental car facility. While these long-term improvements promise a more streamlined airport experience in the future, the immediate future for travelers at LAX will involve navigating a dynamic and evolving construction landscape. The airport’s leadership has expressed confidence that, due to a recent dip in passenger traffic, the capacity exists to handle these changes without a significant negative impact on the overall passenger experience.
“As we take this important step toward transforming LAX, the closure of Terminal 5 marks a pivotal moment in our journey to deliver a world-class airport experience. Our goal is to minimize disruption during this transition, and we are working closely with our airline partners to ensure continued operations and smooth travel for our passengers.” – Doug Webster, Chief Airport Operations and Maintenance Officer, Los Angeles World Airports (LAWA)
A Vision for the Future: The New Terminal 5 and a Modernized LAX
The reconstruction of Terminal 5 is driven by a vision to create a facility that is not only modern and efficient but also provides a “wow factor” for travelers. The new terminal, estimated to cost $1.4 billion, is being designed with a midcentury modern aesthetic and is expected to feature amenities that cater to the expectations of contemporary passengers. Preliminary designs showcase a glass-walled, multilevel concourse that may include an outdoor patio, offering a unique airport experience. The project also aims to improve connectivity within the airport, with plans for two additional gates and a new pathway to seamlessly link the new Terminal 5 with Terminal 4.
This project is not an isolated effort but part of a comprehensive strategy to prepare LAX for the 2028 Olympics and beyond. The large-scale investment in infrastructure is intended to address the airport’s reputation for being difficult to navigate and to create a more welcoming gateway to Los Angeles. The ambitious timeline, which aims for completion just ahead of the Olympic Games, reflects the urgency of this goal. The project’s success will be a significant factor in how the city is perceived on the world stage during this major international event.
The leadership at Los Angeles World Airports (LAWA) has emphasized the transformative nature of this project. Hans Thilenius, Deputy Executive Director of Terminal Development and Improvement, has described the new terminal as a “riveting design” that will be a significant upgrade for both passengers and employees. While the construction phase will undoubtedly present challenges, the long-term vision is one of a fully modernized, efficient, and aesthetically pleasing airport that can serve the needs of a global city for decades to come.
A New Gateway for a Global City
The shutdown and reconstruction of Terminal 5 at LAX represent a bold and necessary step in the airport’s journey toward modernization. As a key component of a multi-billion dollar capital improvement program, this project is about more than just a new building; it’s about redefining the travel experience at one of the world’s busiest airports. By investing in state-of-the-art facilities and improved connectivity, LAX is positioning itself to handle the influx of visitors for the 2028 Olympics and to meet the evolving demands of 21st-century air travel.
While the transition period will require patience and planning from travelers, the ultimate goal is a more efficient, enjoyable, and world-class airport. The successful completion of the new Terminal 5, along with other key modernization projects, will solidify LAX’s status as a premier international gateway. As the city prepares to welcome the world, the transformation of its airport is a clear signal of its commitment to providing a welcoming and seamless experience for all who pass through its gates.
FAQ
Question: When will Terminal 5 at LAX close for renovation?
Answer: Terminal 5 is scheduled for a full closure on October 28.
Question: Which airlines are affected by the Terminal 5 closure?
Answer: The airlines affected are American Airlines, JetBlue, and Spirit Airlines.
Question: Where will the affected airlines be relocated?
Answer: JetBlue will move to Terminal 1, Spirit Airlines’ check-in will be in Terminal 2 with flights from the Midfield Satellite Concourse South, and American Airlines will consolidate in Terminal 4 and the Tom Bradley International Terminal.
Question: When is the new Terminal 5 expected to reopen?
Answer: The new terminal is anticipated to reopen just before the start of the 2028 Olympics on July 14, 2028.
Sources
Photo Credit: Rendering – LAWA
Route Development
Incheon Airport Tops Global International Passenger Rankings in 2026
Incheon handled 38.39M international passengers in H1 2026, surpassing Heathrow and Changi amid Middle East disruptions.

Incheon International Airport (ICN) handled 38.39 million international passengers during the first half of 2026, securing the position of the world’s busiest airport for international traffic for the first time since its opening in 2001.
The milestone, announced by the Incheon International Airport Corporation (IIAC) in an August 13, 2026 press release, highlights a significant realignment in global aviation traffic patterns. Based on preliminary data from Airports Council International (ACI), Incheon overtook traditional international traffic leaders London Heathrow Airport (LHR) and Singapore Changi Airport (SIN). The shift was driven by geopolitical disruptions in the Middle East that weakened established transit hubs, combined with a regional surge in East Asian tourism.
Traffic data and global rankings
During the January to June 2026 period, Incheon recorded a 6.3 percent year-over-year increase in international passenger volume to reach its 38.39 million total. This performance placed the South Korean hub ahead of London Heathrow, which handled 37.79 million international passengers, and Singapore Changi, which recorded 34.53 million.
Transfer traffic played a critical role in Incheon’s ascent. The airport processed 4.24 million transfer passengers in the first half of the year, representing an 18.1 percent increase compared to the same period in the previous year. Transfer volume on European routes saw the most dramatic growth, surging 63.2 percent year-over-year as airlines and passengers sought alternative routes between Europe and Asia.
Kim Beom-ho, Acting President of IIAC, attributed the milestone to a combination of government support and staff dedication:
“I am grateful for the government’s support, the encouragement of the people, and the hard work of the airport staff who have made Incheon the world’s No. 1 airport. We will stay true to the fundamentals of airport operations while accelerating service innovation, including stronger regional connectivity, to enhance public convenience and become a truly people’s airport that contributes to the development of the national aviation industry.”
The airport currently serves 158 international destinations and recently completed a four-stage expansion project, bringing its total annual passenger capacity to 106 million.
Geopolitical shifts and regional tourism
The ongoing US-Iran conflict has severely disrupted air travel through the Middle East, directly impacting the transit function of major hubs in the region. Dubai International Airport (DXB), historically a dominant player in international passenger rankings, experienced a sharp decline in transit volume as operators rerouted flights to avoid the conflict zone. This geopolitical instability effectively redirected a substantial portion of Europe-to-Asia transit traffic through East Asian hubs, with Incheon capturing a significant share of the displaced volume.
Simultaneously, South Korea experienced a surge in inbound tourism, particularly from neighboring China and Japan. According to reporting by The Straits Times, this regional travel boom compounded the gains from rerouted transit traffic. Foreign travelers accounted for a record 44.4 percent of Incheon’s total passenger traffic during the second quarter of 2026.
AirPro News analysis
Incheon’s rise to the top of the international passenger rankings illustrates how rapidly geopolitical events can redraw the global aviation map. The Middle East’s geographic advantage as a natural bridge between East and West became a liability during the US-Iran conflict, allowing East Asian airports to absorb the diverted capacity. We note that while Incheon’s achievement is historic for the facility, the ACI data remains preliminary for the first half of 2026. Final validated full-year statistics, expected in early 2027, will determine whether this shift represents a temporary anomaly or a sustained realignment of global transit flows. Readers should also distinguish between international and total passenger traffic; when domestic volume is included, Hartsfield-Jackson Atlanta International Airport (ATL) typically retains the title of the world’s busiest airport overall.
Photo Credit: Incheon International Airport Corporation
Route Development
FAA Distributes $615 Million in Airport Improvement Grants
The FAA announced $615M in AIP grants across 238 projects in 42 states, funding runways, terminals, and safety upgrades.

The Federal Aviation Administration (FAA) announced a $615 million infrastructure investment on August 20, 2026, distributing 238 grants across 42 states and two territories to modernize aging runways, taxiways, and terminal facilities.
The funding is issued through the Airport Improvement Program (AIP) and arrives during a period of high passenger demand. U.S. Transportation Secretary Sean P. Duffy and FAA Administrator Bryan Bedford detailed the allocations in a press release, emphasizing safety upgrades and passenger experience enhancements.
Major infrastructure and safety allocations
The latest round of AIP funding targets both major commercial hubs and regional airfields. The largest single grant highlighted in the announcement directs $21.5 million to Midland International Air & Space Port (MAF) in Texas for runway rehabilitation. In Alaska, $19.5 million will fund the construction of a new airport in Noatak, addressing critical remote access needs.
Other notable allocations include $15.3 million for noise mitigation efforts at San Diego International Airport (SAN) and $8.3 million to construct a new contract air traffic control tower at Gary/Chicago International Airport (GYY) in Indiana.
Terminal enhancements and capacity growth
Beyond airfield surfaces, the grants support terminal expansions and passenger facility upgrades. Lynchburg Regional Airport (LYH) in Virginia will receive $8 million for a new terminal building. Wilmington International Airport (ILM) in North Carolina secured $6.3 million for a runway extension project to accommodate increased traffic.
At Sacramento International Airport (SMF) in California, a $2.4 million grant will fund the installation of new passenger boarding bridges.
In the official announcement, Secretary Duffy stated that upgrading airport infrastructure is part of the administration’s work to usher in a new era of transportation.
“American families deserve state-of-the-art runways, taxiways and infrastructure that will make their travel experience safer, smoother, and more efficient,” Duffy said.
FAA Administrator Bedford added that the agency is prioritizing these grants while Americans are traveling at record levels, noting the investment ensures the FAA fulfills its promise to transform the passenger travel experience.
AirPro News analysis
This $615 million allocation represents a routine but substantial deployment of Airport Improvement Program capital. We note that the timing aligns with a broader push by the U.S. Department of Transportation (USDOT) to highlight infrastructure spending in August 2026, following a $35.1 million maritime grant announcement earlier in the month. The inclusion of both heavy airfield maintenance, such as the Midland runway rehabilitation, and passenger-facing terminal upgrades reflects the dual mandate of current FAA funding mechanisms to balance operational safety with passenger throughput demands.
Sources: Federal Aviation Administration, Federal Aviation Administration (ATP Context), Maritime Administration
Photo Credit: Midland TX
Route Development
OHare Concourse E Groundbreaking Accelerated Under ORDNext Plan
Chicago advances Concourse E construction to 2026 under the $8.8B ORDNext program, adding gates before Terminal 2 demolition.

The City of Chicago will accelerate the construction of a new concourse at O’Hare International Airport (ORD), breaking ground on the first phase of Concourse E in late 2026 to ensure sufficient gate capacity ahead of a massive terminal replacement project. The revised construction sequence prioritizes new gates to maintain operational stability during the demolition of the existing Terminal 2.
In a press release issued on August 20, 2026, the Chicago Department of Aviation (CDA) and Mayor Brandon Johnson outlined the updated timeline for the $8.8 billion ORDNext modernization program. By fast-tracking Concourse E, the airport aims to support increased flight volumes for hub carriers United Airlines (UA) and American Airlines (AA) before the centerpiece O’Hare Global Terminal (OGT) begins construction in 2029.
Revised timeline and gate capacity
The ORDNext program is designed to increase overall gate capacity at the airport by 14 percent. The newly announced sequence focuses heavily on bringing satellite concourses online before disrupting central terminal operations.
Construction on The New Concourse D began in August 2025. The CDA finalized a Guaranteed Maximum Price for the facility in June 2026, coming in $21 million below the approved budget. Concourse D is scheduled for completion in late 2028 and will provide 19 new gates.
The New Concourse E will be built in two phases. The first phase will break ground in late 2026 and open in 2030, adding 14 gates. The second phase will add 10 more gates and is scheduled for completion in 2034. Once fully built, Concourse E will span approximately 460,000 square feet and house 24 gates.
“Chicago is not waiting to build the O’Hare our residents, businesses and visitors will need for the next generation. By moving forward with New Concourse E this year, we are adding gates where they are needed, keeping this historic modernization moving, and creating a clear path to deliver the O’Hare Global Terminal, the centerpiece of ORDNext, as quickly as possible.” — Brandon Johnson, Mayor of Chicago
Paving the way for the Global Terminal
The decision to advance Concourse E alters a previous 2024 compromise plan. According to reporting by the Daily Herald, the prior sequence would have seen Concourse D built first, followed by a phased construction of the global terminal, and finally Concourse E. The updated strategy ensures that Concourse E provides necessary relief capacity before Terminal 2 is demolished.
Construction on the O’Hare Global Terminal is now scheduled to begin in 2029 and conclude in 2033. DePaul University aviation expert Joseph Schwieterman told the Daily Herald that the revised plan averts what would have been a highly disruptive situation during the construction of the new global terminal.
The resequencing also offers logistical advantages. CDA Communications Director Kevin Bargnes noted to the Daily Herald that the new timeline allows crews to build the tunnel connecting Concourses D and E more efficiently, resulting in overall cost savings for the project.
CDA Commissioner Mike McMurray stated in the press release that starting Concourse E now allows the airport to stay ahead of growth rather than reacting to it. He noted the initial 14 gates will provide the flexibility required to maintain safe and efficient airline operations during the most complex phases of the ORDNext program.
Airline support and operational impact
The capacity additions come as O’Hare experiences high summer demand. The CDA reported the airport is handling nearly 100 more daily departures this summer compared to July 2025, driven by operational expansions from both United and American.
Both hub carriers expressed support for the revised construction sequence. Omar Idris, Vice President of ORD for United Airlines, stated the airline supports a plan that brings new capacity online sooner and maintains efficient operations throughout the construction period.
Amanda Zhang, Vice President of Corporate Real Estate for American Airlines, called the O’Hare Global Terminal a landmark project that will redefine the customer experience. She noted that advancing the terminal efficiently and responsibly remains a shared priority for the airline and the city.
AirPro News analysis
We view the revised ORDNext sequencing as a pragmatic pivot by the Chicago Department of Aviation. Attempting to construct the O’Hare Global Terminal without first securing the relief valve of Concourse E would have likely constrained hub operations for United and American, leading to congestion and potential schedule reductions. By prioritizing gate capacity through the satellite concourses, the city mitigates the operational risk inherent in demolishing a central facility like Terminal 2 at one of the world’s busiest airports. The $21 million budget underrun on Concourse D also suggests the CDA is currently managing the massive capital program with effective financial oversight, a critical factor as the project moves toward the more complex global terminal phase.
Sources: Chicago Department of Aviation
Photo Credit: Chicago Department of Aviation
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