The busiest airport in deep South Texas is gearing up for a major upgrade — one that will allow it to better meet the booming passenger and economic growth currently happening in the Rio Grande Valley.

Officials in McAllen say a $180 million overhaul of the McAllen International Airport could begin within the next year. The massive terminal expansion project would add new gates, baggage claim areas, increased ticket counter space, concessions, restrooms, an expanded Transportation Security Administration security checkpoint and a larger concourse. It’s a much-needed renovation for an airport that last saw significant upgrades in the 1990s. And it comes as McAllen has already begun feeling growing pains.

“We’ve been feeling the pinch,” airport director Jeremy Santoscoy told MySA.

Santoscoy was referring to how activity at McAllen International has quickly begun to outpace the space available. Those who see the airport day-in and day-out know firsthand how cramped it has become as new airlines offer new routes and the number of travelers has grown. In November 2024, the airport achieved a milestone of 1 million passengers in a single passenger year. And a recent capacity study confirmed what airport officials already knew: the airport is running out of space, and much of its existing infrastructure — like HVAC and electrical systems — need renovation.

“So, we’re working on a design, and that entails the addition of about 90,000 square feet and renovating about (another) 70,000 square feet and adding four gates,” Santoscoy said.

The airport is nearing a situation where it must rearrange aircraft like a game of musical chairs because there are not enough gates available.

“Right now, we’re very tight on the apron. We’ve got to remote-park aircraft. … As early as May, we’re going to have seven remain overnights (sic) with only six gates. So we have to remote-park aircraft as it is,” Santoscoy told McAllen city commissioners during a workshop in late February.

As part of the terminal expansion, a new concourse will be built on the airport’s west side that will include construction of four new gates. That will expand McAllen International’s capacity to a total of 10 gates while still leaving room to add an 11th, Santoscoy told city leaders. And an area that currently houses a coffee shop and concessions will be turned into an expanded TSA checkpoint. The concession spaces, meanwhile, will be moved further down the new concourse. And new restrooms will be added both before and past the security checkpoint, Santoscoy said.

Separately, the airport is also in the middle of building a new 200-space parking lot across the street and a 44-space so-called “cell phone lot” — a temporary parking area for motorists who are dropping off or picking up passengers.

Santoscoy described the terminal expansion project as crucial, not just for the city of McAllen, but for the region as a whole. About 3 million people live in the cross-border region that encompasses the Valley and the Reynosa and Matamoros metros.

But what’s truly rare is that the region is serviced by four international airports located in McAllen, Harlingen, Brownsville and Reynosa. Of those traveling from the Valley, the lion’s share — some 48% — fly McAllen International, Santoscoy said.

All told, McAllen International Airport generates some $1.2 billion in regional economic impact annually. And local business leaders recognize the airport’s importance not just for weekend vacationers but also for binational commerce.

“The terminal’s expansion, potential new flights, destinations and airlines are absolutely critical to the region’s explosive growth going forward,” Teclo Garcia, CEO of the Mission Economic Development Corporation, said recently on LinkedIn.