DFW Airport may postpone a $3.5 billion expansion, including Terminal F construction
DFW Airport may have to postpone or scale back much of its $3.5 billion capital expansion plan, including construction of a new Terminal F, because of the coronavirus.
The airport, which is owned jointly by Dallas and Fort Worth, expects to lose up to $225 million in revenue from airlines and passengers during the next six months, chief executive officer Sean Donohue told DFW board members Thursday.
Donohue also told the board that his staff is forecasting that it could be 2021 or 2022 before revenue from domestic flights returns to 2019 levels — and international flight revenue likely will take even longer.
American Airlines, which has its world headquarters in Fort Worth and is the dominant carrier at DFW, had pushed strongly for a new Terminal F in response to dramatic increases in both domestic and international flights. But that was before COVID-19 led to a worldwide shutdown in travel, and grounded nearly all of American’s international routes and at least 60% of its domestic flights.
Terminal F had been expected to open as soon as 2025, just south of DFW’s Terminal D.
Donohue said his staff would consult with American Airlines, which pays fees to the airport and must sign off on any long-term debt, before making a final decision about altering the Terminal F timeline.
But in a briefing to board members, Donohue provided data points that painted a stark picture of the airport’s current situation.
For example, he said only about 200 to 400 international travelers are now arriving at DFW on a given day, down from about 10,000 passengers per day in 2019. Domestically, about 20,000 to 30,000 people are arriving at DFW each day, down from about 200,000 a day last year.
“Given the data and the forecast I shared with you, undoubtedly the timing of the project and the size of Terminal F will be revisited,” Donohue said. “We will have those discussions with American and the other airlines at the appropriate time.”
Donohue stressed that, despite the challenges, DFW was in solid financial shape with more than 600 days of cash reserves on hand.
He also said that capital construction projects that had already started, including the construction of four new gates for American at Terminal D, would continue. He also said that no DFW staff layoffs or furloughs were planned in response to the coronavirus.
Fort Worth Mayor Betsy Price, who is a member of the DFW board, expressed support for the airport staff in adjusting the schedule for any upcoming big-dollar construction projects.
“The Metroplex as a whole is in better shape than other regions, and one reason we are in better shape is because of the hard work at DFW,” Price told board members by phone conference. “I know we’re going to come out of this. It’s not going to be easy, and it’s going to dramatically change the way we do business. It’s a big change in travel long-term. But we’re positioned in a very strong spot, both cities (Dallas and Fort Worth), and I think we’re going to be much better for it.”
This story was originally published April 9, 2020 at 10:36 AM.
