Dallas announces long-term lease terms with Southwest, Delta for Love Field; runway work to be financed by airport revenue

City and airport officials briefed the Dallas City Council on May 21 about a long-term Airline Use and Lease Agreement at Dallas Love Field reached with Southwest Airlines and Delta that would provide operational certainty through 2040 and enable an airport capital program to relieve terminal constraints.

The Department of Aviation said the agreement establishes preferential gate allocations for Southwest and Delta, preserves a city‑controlled common gate for new entrants or additional service, and includes a framework to add gates and allocation changes should federal law change in a way that allows additional air service capacity.

Financing: Aviation staff said an estimated $800 million of airline-related terminal and landside projects is forecast in initial summaries; the city expects to fund the airport program primarily through airport revenue bonds backed by enterprise revenues, grants and some cash, not the city’s general fund. Aviation officials told council that the airline agreement commits airlines to a residual-rate model that aligns airline incentives with efficient airport operations and supports the airport’s ability to issue bonds for the work.

Noise and community measures: the agreement includes a voluntary noise-curfew reporting mechanism and monthly reporting to the aviation department. Airport staff and airline representatives told council the carriers already make substantial efforts to comply with voluntary curfew guidance and said the reporting mechanism will expand data and communication about after‑hour operations.

Why it matters: Love Field is a busy origin‑and‑destination airport; aviation officials said constrained gate and terminal capacity already limit passenger throughput and that the agreement is intended to provide certainty for both the airport and its two large carriers while the city advances a multi-part capital program.

Council questions: members asked whether the proposed financing would affect other municipal borrowing capacity; aviation staff said Love Field revenue bonds are financed through the airport enterprise and are separate from general city borrowing plans. Members also asked about airline gate allocation rules for new entrants, vertiport plans, and whether modernization would raise operating costs for carriers — officials said the agreement and residual model balance those variables and that parking, concessions and other revenues will be part of the long-term program.

Next steps: staff said the use-and-lease agreement will be brought to council for vote on the next Wednesday agenda; airport staff will present a full consolidated LEAP (Love Field Enhancement and Airport Program) financing plan to council in August.