Airliner parked at an airport terminal gate, representing regional airport growthRegional airports across South Alabama continue to see rising passenger traffic.

Gulf Shores International Airport, which opened barely a year ago at a cost of roughly $8 million, is already expanding to keep pace with demand. Airport officials broke ground this week on a $15 million terminal addition that is expected to be finished before the summer 2027 flight schedule begins in May.

The project will add a new concourse, a larger baggage claim area, an outdoor patio, a dedicated nursing room for mothers, and more food, beverage and retail space. Roughly 300 additional parking spaces are also planned. Trip Tek Construction LLC will oversee the build, and renderings released by Populous Fentress Studios show what the finished terminal will look like.

Federal money is again helping foot the bill. Gulf Shores received a $2 million Airport Terminal Program grant from the Federal Aviation Administration, funded through the 2021 Infrastructure Investment and Jobs Act — the same law that contributed $5 million toward the airport’s original terminal two years ago.

Airport Director Jesse Fosnaugh said the rest of the expansion is being covered through a $20 million line of credit while officials pursue additional funding.

“We are working to secure additional contributions from stakeholders as the project advances,” Fosnaugh said. “The ultimate goal will be to secure long-term financing once the project is completed and all contributions and actual construction costs materialize.”

The expansion follows a stretch of strong passenger numbers. More than 34,000 passengers passed through the airport in June, the busiest month since Allegiant Air began flying out of Gulf Shores in May 2025. Flights to the airport’s 13 destinations ran at an average load factor of 78% that month, and the airport logged 104,000 enplanements in its first 12 months of commercial service — a result officials described in May as exceeding expectations.

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“We have been in lockstep with Allegiant throughout this process,” Fosnaugh said. “Measured growth allows for greater route scheduling opportunities, increased space for our passengers, and more supporting infrastructure. Even though we are growing, we will keep the airport experience quick, easy, inexpensive, and cheerful. The ‘small-community’ feel of the airport is paramount to our mission.”

The new terminal will have two gates with the ability to expand to four, according to Fosnaugh.

“Currently we are operating with a gate area that can handle only one flight at a time, so having two gates will allow for two aircraft on the ground at the same time with a third aircraft capable within an hour of one of the two leaving,” he said. “This equates to nearly three times the throughput of the current terminal, depending on flight activity and passenger load factor.”

Fosnaugh said travelers should expect some operational challenges around the terminal and parking areas while construction is underway, but that the end goal is to better serve passengers as the airport continues to grow.

By James Bullard

James Bullard is a staff reporter for South Alabama News (southalabamanews.com), covering local government, community affairs, and breaking news throughout Mobile, Alabama and the greater Gulf Coast region. Known for his thorough, on-the-ground reporting and commitment to accuracy, James brings South Alabama readers timely coverage of the stories that matter most to their neighborhoods.