This article summarizes reporting by Mexico News Daily and MND Staff.

Aeroméxico CEO Proposes Massive Terminal 3 Project for Mexico City International Airport

In a bold move to address chronic congestion at Mexico City International Airport (AICM), Aeroméxico has publicly proposed the construction of a new Terminal 3 (T3). According to reporting by Mexico News Daily, the airline’s Chief Executive Officer, Andrés Conesa, outlined a plan that would see the new terminal eventually replace the existing Terminal 1 and Terminal 2 facilities entirely.

The proposal, which Conesa detailed during an interview on the “RodCast” podcast, envisions a structural overhaul of the capital’s primary air hub. Rather than serving as a mere annex, the proposed T3 would consolidate operations into a single, modern facility capable of handling significantly higher passenger volumes. This development comes as the airport continues to operate under saturation decrees that have limited flight frequencies since 2022.

The Terminal 3 Proposal Details

According to the details shared in the interview and summarized by Mexico News Daily, the new terminal would be constructed on the eastern side of the airport, where Terminal 2 currently stands. Conesa explained that this location is strategically necessary because the western side (Terminal 1) houses critical fuel farms and pipeline infrastructure that are prohibitively difficult to relocate.

Capacity and Logistics

The project aims to increase AICM’s capacity from its current saturation point of approximately 50 million passengers per year to between 70 and 75 million annually. To achieve this, the plan requires a complex logistical reorganization:

• Relocation of Facilities: Existing maintenance workshops and hangars, including Aeroméxico’s own facilities, would need to be moved to the western side of the airport to clear space for the new terminal.
• Consolidation: The new T3 would be larger than T1 and T2 combined, effectively unifying the airport’s passenger operations under one roof.

Conesa emphasized that this expansion is intended to work in tandem with the Felipe Ángeles International Airport (AIFA) and Toluca International Airport. Together, this metropolitan system could handle over 100 million passengers annually, positioning Mexico City as a competitive global hub.

Strategic Context and Government Response

This proposal arrives at a critical time for Mexican aviation. The previous administration prioritized the development of AIFA to solve saturation issues, shelving earlier discussions regarding a third terminal at AICM. However, Aeroméxico argues that AICM remains the preferred hub for connectivity and requires immediate modernization to maintain efficiency.

Current Renovations vs. Structural Change

While Aeroméxico pushes for a structural overhaul, the federal government has initiated a different set of improvements. As noted in reports surrounding the proposal, the government recently announced an investment of approximately 8 billion pesos for renovations at AICM. These works are primarily focused on aesthetic and functional upgrades, such as bathroom improvements and painting, in preparation for the 2026 FIFA World Cup, rather than the capacity expansion Aeroméxico suggests.

“Building T3 on the T1 side is not viable due to the presence of critical fuel farms…”

, Andrés Conesa (via RodCast/Mexico News Daily)

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AirPro News Analysis

The Reality of a Dual-Hub System

Aeroméxico’s proposal signals a shift in the industry’s narrative regarding Mexico City’s airspace. For years, the political debate framed AIFA as the replacement for AICM’s saturation woes. However, Conesa’s comments suggest that the industry views a dual-hub system as the only viable long-term reality. By proposing a massive investment in AICM, the airline is effectively stating that AIFA alone cannot absorb the projected growth of the metropolitan area.

Political and Financial Hurdles

The feasibility of this project relies heavily on political will. With the Sheinbaum administration currently focused on “aesthetic” renovations for the World Cup, a multi-billion dollar capital project that disrupts current operations (moving hangars and demolishing terminals) faces a steep uphill battle. Furthermore, the funding model, whether public, private, or a partnership, remains undefined. Without explicit government backing, T3 remains a conceptual vision rather than an active project.

Frequently Asked Questions

What is the main goal of the Terminal 3 proposal?
The goal is to replace the aging Terminals 1 and 2 with a single, larger Terminal 3 to increase capacity to 75 million passengers annually and streamline operations.

Where would the new terminal be built?
It is proposed for the eastern side of the airport, currently occupied by Terminal 2.

Does the government support this plan?
As of January 2026, the government has not officially adopted this specific proposal. Current government efforts are focused on an 8 billion peso renovation of existing facilities for the 2026 World Cup.

Will this replace the Felipe Ángeles Airport (AIFA)?
No. The proposal envisions AICM and AIFA working together as a metropolitan system with a combined capacity of over 100 million passengers.

Sources: Mexico News Daily

This article summarizes reporting by Dakota News Now.

South Dakota Governor Pre-Files SB 76 to Fund Major Airport Expansions

South Dakota Governor Larry Rhoden has officially pre-filed Senate Bill 76 (SB 76), legislation aimed at injecting capital into the state’s two largest commercial aviation hubs. According to reporting by Dakota News Now, the bill proposes utilizing state funds to issue zero-interest loans for critical infrastructure projects at Sioux Falls Regional Airport (FSD) and Rapid City Regional Airport (RAP).

The announcement, made on January 9, 2026, marks a strategic pivot in how the state approaches infrastructure financing. Rather than offering direct grants, the Rhoden administration is seeking to leverage the Revolving Economic Development and Initiative (REDI) Fund to support airport modernization. This move comes in response to record-breaking passenger growth and the urgent need for expanded terminal capacity in both East and West River regions.

Governor Rhoden, who assumed office following the resignation of former Governor Kristi Noem, has framed the legislation as a fiscally responsible method to support economic development. By utilizing a loan structure, the administration argues that the funds will eventually return to the state for future use, addressing concerns raised by fiscal conservatives during previous legislative sessions.

Legislative Framework and Funding Mechanics

Senate Bill 76 outlines a specific mechanism to transfer unobligated capital from the Housing Infrastructure Fund to the REDI Fund. According to the legislative text summarized in recent reports, the total allocation is capped at $30 million.

Loan Structure and Distribution

The bill designates an equal split of the available resources between the state’s two primary airports. Under the proposed terms:

• Sioux Falls Regional Airport is eligible for up to $15 million.
• Rapid City Regional Airport is eligible for up to $15 million.

Crucially, these funds are structured as 0% interest loans rather than grants. This distinction is intended to make the bill more palatable to lawmakers who previously opposed direct spending on specific airport projects. As noted in the research surrounding the bill, the repayments will flow back into the REDI Fund, allowing the capital to be “recycled” for other economic development initiatives across South Dakota.

Scope of Infrastructure Projects

Both airports have reported double-digit percentage increases in passenger traffic since 2019, pushing current facilities to their operational limits. The funding from SB 76 is intended to accelerate multi-million dollar expansion plans that are already in development.

Sioux Falls Regional Airport (FSD)

Officials at Sioux Falls Regional Airport, also known as Joe Foss Field, have outlined a comprehensive master plan to address congestion. The proposed expansion includes the construction of a new concourse connection and significant terminal upgrades. Key elements of the project include:

• The addition of 5 new aircraft gates, bringing the total gate count to approximately 12.
• 57,000 square feet of new space dedicated to passenger seating and circulation.
• Enhanced baggage claim and security checkpoint facilities.

According to project estimates, the total cost for the FSD expansion is projected between $130 million and $140 million, with a target completion date around 2027. The airport is a major economic engine for the region, generating an estimated $400 million in annual economic activity.

Rapid City Regional Airport (RAP)

Rapid City Regional Airport is facing similar pressures driven by high tourism demand for the Black Hills and Mount Rushmore. Passenger traffic at RAP has surged by approximately 30% since 2019. The proposed funding would support a multi-year terminal expansion and renovation, including:

• Modernization of the TSA security checkpoint.
• Expansion of ticketing and baggage claim areas.
• Upgrades to mechanical systems and infrastructure, portions of which date back to 1985.

Political Context and Stakeholder Reactions

The introduction of SB 76 occurs as Governor Rhoden prepares for the 2026 election. The administration has positioned the bill as a “win-win,” balancing the need for infrastructure growth with fiscal prudence. In a statement regarding the initiative, Governor Rhoden emphasized the necessity of the project:

“South Dakota continues to grow, and we need infrastructure that can grow with us. We’re putting existing dollars to work in a smart, responsible way.”

, Governor Larry Rhoden (via official press remarks)

However, the bill may face debate in the upcoming legislative session. Critics, including some conservative lawmakers, have previously argued that surplus funds should be prioritized for property tax relief rather than targeted loans. Additionally, there is occasional friction regarding the concentration of state resources in Sioux Falls and Rapid City, though proponents argue that these airports serve as the primary gateways for the entire state.

AirPro News Analysis

The shift from grants to zero-interest loans represents a significant tactical adjustment by the Rhoden administration. By utilizing the REDI Fund, the state is effectively treating airport infrastructure as a renewable economic investment rather than a sunk cost. This approach may serve as a model for other states looking to fund aviation infrastructure without permanently depleting general funds, particularly in an era where federal funding can be unpredictable. If successful, this model could accelerate the timeline for regional airports to modernize, ensuring they can accommodate the next generation of commercial aircraft and passenger volumes.

Sources

Sources: Dakota News Now

This article summarizes reporting by Bloomberg and Aashna Shah.

The original report is paywalled; this article summarizes publicly available elements and public remarks.

US airports issued a record-breaking $24 billion in municipal debt in 2025, marking a 12% increase from the previous year as facilities race to modernize aging infrastructure. According to reporting by Bloomberg, major hubs ranging from Atlanta to San Francisco are undertaking deep renovations to accommodate surging passenger volumes.

The borrowing spree comes as the aviation industry faces a critical intersection of booming travel demand and outdated facilities. With the Transportation Security Administration (TSA) recording multiple record-breaking screening days in 2024 and 2025, airport authorities are leveraging the municipal bond market to fund massive capital improvement projects. These initiatives aim to expand capacity, update security protocols, and enhance passenger amenities before the system is overwhelmed.

Drivers of the $24 Billion Surge

The primary catalyst for this historic issuance volume is the relentless return of travelers. As noted in industry data supporting the Bloomberg report, the TSA screened nearly 3.1 million passengers on June 22, 2025, setting a new single-day record. This resurgence has pushed terminals built in the 1960s and 70s to their operational limits.

Furthermore, airports are engaging in “catch-up” spending. Many capital projects paused during the COVID-19 pandemic have been restarted and accelerated. Bloomberg highlights that these renovations are essential for airports working to keep pace with the travel boom while simultaneously upgrading outdated concourses.

“Airports spanning from Atlanta to San Francisco are deep in renovations as they work to keep up with booming passenger volumes…”

, Bloomberg

Key Infrastructure Projects

Several major international hubs accounted for the bulk of the 2025 debt issuance. Based on public filings and market data, the following airports led the charge in securing funding for expansion:

JFK International (New York)

New York’s JFK International was a significant driver of the year’s volume, securing approximately $3.3 billion in combined debt. This includes $1.37 billion in Green Bonds issued in July 2025 to fund Phase A of the New Terminal One, expected to open in 2026. An additional issuance supported the development of Terminal 6, a new 1.2 million square foot facility.

Dallas Fort Worth (DFW)

DFW issued roughly $1.97 billion to support its capital program. Key projects include the construction of Terminal F, a new sixth terminal featuring 15 gates, and the complete reconstruction of Terminal C, one of the airport’s busiest legacy facilities. DFW utilized innovative financial structures, such as “put bonds,” to manage near-term interest costs effectively.

Chicago O’Hare (ORD)

Chicago O’Hare tapped the market for $1.6 billion to fund its ORDNext Program. This massive initiative involves the creation of a “Global Terminal” and new satellite concourses designed to replace the aging Terminal 2, integrating domestic and international operations.

Hartsfield-Jackson Atlanta (ATL)

The world’s busiest airport, Hartsfield-Jackson, issued $1.03 billion, largely in the form of Green Bonds. The funds are earmarked for the widening of Concourse D, a critical project to alleviate congestion in the airport’s narrowest concourse and improve passenger flow.

Market Dynamics and Investor Interest

Despite the sheer volume of supply, investor appetite for airport debt remained robust throughout 2025. Market analysts attribute this to the “yield hunger” of institutional buyers. Airport bonds often offer slightly higher yields than general obligation bonds because they are revenue-backed, repaid through airline fees and concessions, and are frequently subject to the Alternative Minimum Tax (AMT).

Additionally, the sector is viewed as a safe haven. Airports have proven resilient post-pandemic, maintaining strong credit ratings as essential monopolies. The Federal Reserve’s pivot to interest rate cuts in 2025 helped lower borrowing costs on the short end of the curve, although long-term yields remained attractive to insurance companies and bond funds due to the record issuance volume.

AirPro News Analysis

We view this record borrowing not merely as a financial trend, but as a race against time. The aviation sector is effectively rebuilding the plane while flying it. With major global events like the 2026 World Cup on the horizon, US airports are under immense pressure to modernize facilities that were designed for a different era of travel. While the $24 billion figure is staggering, rising construction costs and labor shortages mean that this capital buys slightly less infrastructure than it would have five years ago, making efficient project execution just as critical as securing the funding.

Frequently Asked Questions

Why are airports borrowing so much money now?
Airports are borrowing to fund urgent infrastructure upgrades needed to handle record-breaking passenger volumes and to replace aging terminals that cannot support modern security and aircraft requirements.

What are Green Bonds in the context of airports?
Green Bonds are debt securities issued specifically to fund environmentally sustainable projects. Airports like JFK and ATL use them to finance energy-efficient buildings and carbon-reduction initiatives.

How does this affect travelers?
In the short term, travelers may encounter construction zones and detours. In the long term, these funds will result in more spacious terminals, better amenities, and more efficient security checkpoints.

Sources

• Bloomberg