Some airport projects on pause
Less revenue to support work
Earlier this year, Raleigh-Durham International Airport was on pace to expand its Terminal 1 from nine gates to as many as 22 and proceed with a new security checkpoint and a consolidated rental car facility.
The planned improvements were an example of what airports across the country have been undertaking to make their terminal facilities more spacious, comfortable, convenient and efficient for air travelers.
Then, the coronavirus pandemic swept the globe, sharply curtailing air travel.
“I’d say we slammed the brakes on it,” said Michael Landguth, the airport’s president and CEO, with no certainty about when the effort would resume.
Halfway across the country, Kansas City International Airport is moving forward with a new $1.5 billion terminal that has been in the works for many years.
“We’ve been fortunate through this pandemic,” said Patrick Klein, director of aviation for Kansas City, Missouri.
The two airports illustrate the uneven impact of the pandemic on airport terminal projects, with some moving forward and others left in the dust.
Wednesday, nearly 587,000 travelers passed through airport security, up from below 100,000 some days in April but still far down from the 2.3 million recorded on the same day a year ago, according to the Transportation Security Administration.
Not only has the drop in passenger traffic severely hit airlines, it has slammed airports, too. Airports rely on passengers to spend money at retail establishments and restaurants and buy airplane tickets – which include a passenger facility fee – to support a revenue stream that pays for terminal improvements.
Matt Cornelius, executive vice president at the Airports Council International-North America (ACI-NA), a trade group, said the pandemic has been “devastating” for airports.
“People aren’t parking, shopping at the shops and eating at the restaurants,” he said. “It’s a difficult time.”
That has translated into big terminal improvement projects being put on hold.
Among the casualties: San Francisco International’s $1 billion Terminal 3 project, which had been scheduled to begin construction in June. The project was supposed to include a seismic retrofit, new passenger amenities and new architectural finishes. The terminal is used exclusively by United Airlines.
The pandemic also delayed Dallas/Fort Worth International’s $3 billion Terminal F, which was set to add 24 gates and primarily serve American Airlines.
A $13 billion expansion of New York’s JFK International Airport is on hold as well. Construction was supposed to begin this year and finish in 2025.
The pandemic has not slowed other projects, however. Salt Lake City International is on the way to completing a $4 billion project next month to replace a terminal that was designed more than 50 years ago.
Newark Liberty International Airport also is moving forward with its $2.7 billion Terminal One, scheduled to open next year.
ACI-NA identified $128 billion in airport infrastructure needs nationwide in a 2018 survey of airports, much of the need terminal-related. Many airport terminals reflect an earlier time in air travel, before 9/11 changed security requirements and when travelers demanded fewer amenities.
Airport terminals are the first spaces air travelers see when they arrive in a city, and, increasingly, cities want their airports to reflect their character and culture while providing convenience and efficiency.
Kansas City’s aging horseshoe-shaped terminals illustrate the issue.
The airport’s terminals were completed in 1972 and allowed passengers to park their cars and walk a short distance into the terminal and to their gates.
While convenient for local passengers, the configuration proves a hassle for airlines and passengers who need to transfer – they’re forced to go through security again because of the terminal’s design. The terminals have little space for security, baggage claim, waiting areas, restrooms and retail and restaurants.
After years of debate, voters approved a bond issue in November 2017, and construction began last year. When it opens in 2023, the new terminal will have 39 gates and 1 million square feet of space to better meet modern passenger needs and comfort.
Klein said the new terminal will feature more space and light along with an outdoor lounge area, and it’s designed to be as touchless as possible. The airport will have more of Kansas City’s signature barbecue, with a smoker on site. He said there will also be $5.7 million in public art.
“We really want this terminal to be the spirit of Kansas City,” Klein said.
For Raleigh-Durham, it’s a different tale. Landguth said the airport was coming into 2020 with five years of explosive growth in passenger traffic. Its parking lots were overflowing, and it served five international destinations.
The airport was weeks away from beginning its Terminal 1 expansion, Landguth said, when the pandemic hit.
“Rapidly, that fell apart on us,” he said. Raleigh-Durham’s passenger count fell 96.5% in April and 92.5% in May. In June, the airport saw 84.4% fewer passengers than a year earlier. Landguth slashed the airport’s budget by half.
“I don’t see a significant increase in revenue soon,” he said. “We have literally got it down to a survival budget.”