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Houston approves first round of funding for United Airlines' $2.6 billion IAH project

By Chandler France – Reporter, Houston Business Journal
Mar 20, 2024

It’s official: Houston City Council has approved its first round of funding for United Airlines’ $2.6 billion Terminal B redevelopment project at George Bush Intercontinental Airport (IAH).

After months of delays, an item to provide $150 million in city funding for the project was once again included on council’s March 6 agenda. However, that meeting was adjourned before new City Controller Chris Hollins signed off on the funding, so council members did not have the opportunity to vote on the ordinance. The funding officially came up for a vote during the March 20 meeting and was approved.

“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,” Chicago-based United Airlines (Nasdaq: UAL) said in a statement. “We are thrilled that Houston City Council voted to approve their portion of this project, so that we can deliver on the numerous benefits to our customers and employees and continue to invest in the city of Houston.”

Houston Airport System Director of Aviation Jim Szczesniak said during the city council meeting that the redevelopment will be a “welcome improvement” for the 50-year-old Terminal B. The project will modernize and triple the capacity of the terminal, which will span 765,000 square feet across three levels, featuring 22 mainline narrow-body and 18 large regional gates as well as two major concession hubs with 115,000 square feet of food and retail space, among other improvements.

The $150 million in funding is the first of three appropriations the city expects to give United over the course of the project. The city’s portion of the project will total $624 million, which is expected to be fully recoverable. Houston will need to approve future ordinances to provide United with further funding, Finance Director Melissa Dubowski said during the meeting.