The Houston City Council has voted to approve $250 million in expansion funding for Houston Hobby Airport (HOU), enabling the airport to start construction on a project to add seven new gates.

Houston Airports, which runs both HOU and Houston Bush Intercontinental Airport (IAH), says the council has now approved a total of $270 million toward the expansion project ($20 million was approved by the council in March 2022). The latest tranche will allow construction to begin in 2024, according to Houston Airports.

The total cost of the project is pegged at $470 million. Houston Airports says it plans to make a $200 million supplemental appropriation request to the council in the next 12-15 months for the remainder of the money.

Construction, starting in 2024, is expected to last two years. The expansion will include seven gates that can accommodate both domestic and international flights. It will also feature an expanded and upgraded baggage handling system and baggage claim area.

Southwest Airlines has a more than 90% passenger market share at HOU.

The latest expansion will add to the 280,000-ft.² concourse at HOU, on which Southwest and Houston Airports collaborated, which opened in 2015. With service to Cancun, Mexico, kicking off that year, Southwest launched HOU’s first international flights in 46 years.

The concourse has five gates, so the new expansion will more than double the number of gates to 12. 

“Increasing demand from passengers for more air service from Hobby Airport, which is less than 10 mi. south of downtown Houston, is a driving force behind [the] decision by the city council,” Houston Airports says in a statement. 

Houston Mayor Sylvester Turner adds: “As a global city and sought-after destination, we have excelled in attracting new air services. Enhancing our Houston Hobby Airport infrastructure strengthens the backbone of our economic vitality and cultural prosperity. This expansion project symbolizes our commitment to a thriving future.”

Hobby Airport handled more than 913,000 international passengers and over 12.2 million domestic passengers in 2022.

Southwest bases 5,000 employees in Houston, most of them stationed at HOU. Hobby Airport is connected to 83 destinations. In addition to Southwest, Allegiant Air, American Airlines, Delta Air Lines and Frontier Airlines serve HOU.