American, United reach agreement with City of Chicago on $8.5B O'Hare Airport overhaul

American and United, the airport's largest carriers, signed off on the Terminal Area Project after the city proposed changing the order of construction on the new Global Terminal and nearby satellite concourses, the Chicago Tribune reported. In a reversal of previous plans, work on the new terminal, which is slated to replace Terminal 2, will be accelerated, while the construction of two satellite concourses will be delayed.

American Airlines, in a statement following news of the agreement, in part commended Johnson "for his commitment to phase the project in a way that prioritizes the Global Terminal and the most impactful elements of TAP..."

United also released a statement, saying, "We are pleased that Mayor Johnson and his aviation department have put forth a phasing plan that will ensure that TAP funds are first spent on the mission-critical portions of the program — the O'Hare Global Terminal and Satellite 1..."

The complete statements from American Airlines and United Airlines can be found toward the bottom of this article.

Both airlines previously pushed back against rising construction costs as they sought to ensure the new terminal wasn't threatened by future budget issues, according to the Tribune. Amid tensions between different entities, Illinois Sens. Dick Durbin and Tammy Duckworth, as well as several members of Illinois' Congressional Delegation, sent a letter to the Department of Transportation in December 2023. They requested that the DOT intervene and "facilitate a path forward between and convene all O'Hare stakeholders."

Durbin and Duckworth issued a joint statement on Friday evening, expressing relief over the agreement.

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"After months of volleying counter-offers and facing deadlock, we are relieved that the City of Chicago and the airlines have finally come to an agreement about the future of the Chicago O'Hare International Airport Terminal Project," the statement read. "With both parties now in agreement, we can begin to take a major step forward on the project with a shared vision - one that allows O'Hare to not only maintain its world-class status, but to also modernize its terminals while leaving room to expand to meet the demands of travelers well into the future."

American and United announced support for an $8.5 billion renovation of O'Hare, including the addition of a state-of-the-art Global Terminal, in 2018. In early 2023, O'Hare celebrated the grand opening of an eastern extension of Terminal 5, the airport's largest terminal project since that terminal's construction in 1993.

Most recently, a groundbreaking ceremony took place on the three-year, $300 million upgrade of Terminal 3 in April.

The completion date of the overall project, largely funded by city bonds from airline fees, was pushed back several years as a result of skyrocketing construction costs. The expansion is set to be finished in 2032, not 2026 as originally planned.

Touted as "one of the largest and most cutting-edge airport facilities in America,"  the new $2.2 billion Global Terminal will more than double the space of the existing Terminal 2, according to a website about the project. The terminal will host both international and domestic arrival gates, state-of-the-art baggage systems, as well as brand new immigration and customs facilities, among other features.

According to lawmakers, the agreement announced on Friday will help expand O'Hare's gate capacity by 25 percent, enabling the airport to accommodate a wider range of aircraft, improve gate access for arriving aircraft, reduce delays and more.

The complete statements from American Airlines and United Airlines can be found below:

American Airlines

"We are pleased to support the city's proposal to move forward with the Terminal Area Plan (TAP) at O'Hare International Airport in a way that protects the competitiveness of O'Hare, and we look forward to enhancing the travel experience for our customers, improving the efficiency of our operation and creating thousands of jobs for Chicagoans. We thank Mayor Brandon Johnson for his valued partnership, and we commend him for his commitment to phase the project in a way that prioritizes the Global Terminal and the most impactful elements of TAP.

The path ahead will be challenging, and we'll all need to continue working together to get this project completed within the allotted budget. Keeping our customers, team and the enduring vitality of our Chicago hub at top of mind, we extend our steadfast commitment to working together with all stakeholders to deliver a modern airport that Chicago will be proud of - while keeping the project moving forward and vigilantly monitoring cost to preserve O'Hare's status as an important connecting hub in our global network."

United Airlines

"We are pleased that Mayor Johnson and his aviation department have put forth a phasing plan that will ensure that TAP funds are first spent on the mission-critical portions of the program — the O'Hare Global Terminal and Satellite 1. The Global Terminal has always been the centerpiece of this program and the crucial piece needed to ensure Chicago maintains its status as a global hub. Under this new phasing plan, we can deliver the most impactful elements of the modernization project the quickest."

We are excited to move forward on this project so our customers traveling to and from Chicago can enjoy the benefits. We look forward to collaborating with the Mayor and his aviation department on the budget, scope and design of the project so that together, we can not only deliver the modernized airport envisioned in the 2018 lease contract but also ensure O'Hare's future financial stability and competitiveness for years to come."