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AUSTIN GREENLIGHTS $5.5M DEAL TO BRING 2,000 SOUTHWEST JOBS

Austin-American Statesman
December 11, 2025

Austin has officially signed off on an incentive package worth up to $5.5 million to support a major new expansion by Southwest Airlines, the latest move cementing the carrier’s growingpresence in one of its fastest-rising markets.

The City Council on Thursday unanimously authorized negotiation and execution of the agreement, which is expected to help Southwest add as many as 2,000 jobs in Austin over the next five years. City officials would not say what types of positions the Dallas-based carrier plans to bring, but city documents show the roles would carry an average salary of $180,000.Under the approved framework, Southwest would receive $2,750 per Austin-based hire, provided those employees live within city limits and the airline meets job-creation and performance requirements. Southwest would also return 10% of its award to the city’s Childcare Assistance Reserve Fund.

In all, the expansion is projected to generate $19.8 million in new local tax revenue — $11.85 million of that going directly to the city while creating another 5,100 indirect new jobs in construction, hospitality, food service and other sectors.

Officials say Austin travelers could also see new flights and more options as Southwest scales up.

“This agreement would bring thousands of good-paying union jobs that will help pay the bills and support our families,” Council Member Vanessa Fuentes, whose district includes the airport, said Thursday. “We know that when people have stable work, our whole community benefits from local businesses to neighborhood stability.”

Neither the city nor Southwest has detailed what operations will expand here but Gov. Greg Abbott and Southwest CEO Bob Jordan are scheduled to unveil more Friday morning at an airport news conference. Southwest officials have previously said the airline hopes to expand its footprint in Austin as the airport expands, with a second concourse slated to open in the early 2030s. The airline is already the dominant carrier at Austin-Bergstrom carrying more than 40% of the airport’s traffic.

“Southwest appreciates the leadership of Mayor Kirk Watson and the Austin City Council and we look forward to working with them as we make Austin and Central Texas an even bigger part of Southwest’s future,” Southwest said in a statement ahead of the vote.