LA Board of Airport Commissioners Approves Acquisition of More Than $1 Billion in Terminal Improvements

Los Angeles World Airports (LAWA) recently took the next step in its $14.5-billion modernization of Los Angeles International Airport (LAX) as the Los Angeles Board of Airport Commissioners (BOAC) unanimously approved the appropriation of more than $1 billion to fund the final and largest phase of construction for the modernization of Terminals 4 and 5.

The Board’s July 8 approval paves the way for LAWA to acquire the modernized facilities from American Airlines, which is administering the ongoing work in both terminals. In total, the projects will cost about $1.62 billion.

“In approving the acquisition of more than $1 billion in terminal improvements, Los Angeles World Airports is investing in a future for LAX that is environmentally sustainable, innovative and exceptional,” said Sean Burton, President, Board of Airport Commissioners. “In partnership with American Airlines, LAX’s new Terminals 4 and 5 reflect our gold-standard vision and will create construction jobs for our local community.”

For this project, American Airlines has committed to achieve a goal of 20 percent of the work going to local and diverse business enterprises.

“LAX will deliver world-class facilities ahead of the 2028 Olympics, including modernized terminals that offer the best in design, technology and passenger experiences,” said Justin Erbacci, Chief Executive Officer, LAWA. “We thank our Board of Airport Commissioners and our partners at American Airlines for advancing the work taking place at Terminals 4 and 5, as we continue to deliver on our promise for a transformed LAX.”

In addition to providing a pedestrian bridge connecting Terminals 4 and 5 to the forthcoming Automated People Mover train, the terminal vertical core also will include new passenger check-in and baggage claim facilities, a consolidated security screening checkpoint, a new headhouse area for passenger processing and a new post-security connection between Terminals 4 and 5. The vertical core also provides office and support spaces for airlines, the Transportation Security Administration (TSA) and other law enforcement agencies. The façade of the vertical core will match design elements of other cores that are currently under construction throughout the Central Terminal Area.

“American Airlines is building a terminal for tomorrow, a substantial multi-year commitment to modernize our hub at LAX,” said American’s Vice President of Corporate Real Estate Kirk Hotelling. “When complete, the upgraded facility will create an entirely reimagined customer experience from end-to-end with a reconfigured ticketing area, more efficient security checkpoints, upgraded gate area amenities, state-of-the-art finishes and expanded retail and dining options.”

A new south concourse will be constructed inside Terminal 4, featuring additional space for hold rooms, concessions, restrooms and a bus gate that will serve both domestic and international traffic. Two existing aircraft gates will also be rebuilt to support U.S. Customs and Border Protection Federal Inspection Station capability. Improvements will be made to the north concourse that will increase the efficiency of passenger movements.

Additional work includes improvements to Terminal 4 power systems, including transformers and backup power, replacement of the terminal’s aircraft apron and a reconfiguration of its hydrant fueling system and underground utilities.

These improvements are projected to be completed ahead of the 2028 Olympic Games, which will be hosted in Los Angeles.

The item approved by the Board of Airport Commissioners now goes to the Los Angeles City Council for approval.