Houston City Council allocates $150M for IAH Terminal B Transformation

March 20, 2024

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HOUSTON - Houston City Council voted to approve an ordinance to allocate $150,000,000 from the Houston Airport System Consolidated 2011 Construction Fund for a Memorandum of Agreement between the City of Houston and United Airlines.

United Airlines has begun work on a $2.55 billion transformational project to triple the capacity of the existing Terminal B at George Bush Intercontinental Airport (IAH). Opened in June 1969, Terminal B is one of the original terminals at Bush Airport, and its infrastructure is undersized and outdated. A new Terminal B will triple the capacity on curbs and roads and provide safe, clean and world-class facilities. The project includes 40 new gates for domestic and international travel, a new processor for ticketing, security and baggage claim, and two new concourses, creating over 3,000 new jobs in Houston.

"My administration has been asking questions from day one to ensure this proposal was a good business decision for the City of Houston. I have listened to United, the City's financial advisors, and the business community. Houston needs first-class facilities as a global city that welcomes millions of travelers to IAH annually. It is important for the airline and the millions of passengers traveling in and out of IAH annually. We will get this airport expansion done the right way," said Mayor Houston John Whitmire.

Council's decision to move forward on this critical infrastructure proposal will have broad implications for the business and travel sectors that frequently rely on travel through IAH. Houston's airports are economic engines for the region.

LEARN MORE | IAH Terminal B Transformation

"The transformation of IAH Terminal B not only promises an elevated passenger experience with cutting-edge technology and modern amenities but signifies a strategic investment in Houston's economic future as we seek to increase the terminal's capacity for even more passengers from curb to gate," said Jim Szczesniak, Director of Aviation for Houston Airports. "The economics of this project are excellent for Houstonians: more than a 25% return on a Net Present Value basis. More than a renovation, this project declares our commitment to progress and innovation, solidifying Houston's position as a global aviation hub while setting a new standard for airport excellence."

United Airlines expects to invest more than $1.9 billion in the Terminal B Transformation Program and the City of Houston expects to fund $624 million in enabling projects required for the program. Today's allocation of $150 million is the first round of Council-approved funding for those enabling projects. The enabling project costs assumed by the City of Houston are fully recoverable over time and after the project's completion through rates and charges payable by airlines and other operators at IAH with whom the City has agreements. The funding to be provided by the Houston Airport System enterprise fund is consistent with federal law as an appropriate use of airport revenues.

“United Airlines is committed to providing the best travel experience to our customers and that includes investing in the $2.6B redevelopment of our Houston hub. We are thrilled that the Houston City Council voted to approve their portion of this project so that we can deliver numerous benefits to our customers and employees and continue to invest in the city of Houston. We extend our gratitude to Mayor Whitmire, Controller Hollins, and City Council for their support of the project and United’s continued investment in the city of Houston," said Phil Griffith, Vice President - Houston Hub for United Airlines.

ABOUT HOUSTON AIRPORTS | Houston Airports is the City of Houston’s Department of Aviation. Comprised of George Bush Intercontinental Airport, IAH, William P. Hobby Airport, HOU, and Ellington Airport/Houston Spaceport, EFD, Houston Airports served a record 60.1 million passengers in 2023. Houston Airports positions Houston as the international passenger and cargo gateway to the South-Central United States and as a primary gateway to Latin America.

ABOUT UNITED AIRLINES | At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL”.