Lexington’s airport is getting a new concourse. But these key upgrades are being made first
Lexington’s airport is getting ready for a big upgrade.
The Blue Grass Airport is launching a multi-year development program that will ultimately result in a new concourse with eight gates, expanded dining and retail options, and an upgraded baggage claim area. Before that, several key projects will take place to prep the airport for the new concourse. Some of those are already complete or underway.
The developments will use state and local money to help create the space needed for future growth to meet demand while minimizing travel disruption.
A series of key projects over the next five years — some of which are already complete or underway — will position the airport to add a new concourse with eight gates, expanded dining and retail options and an upgraded baggage claim area.
At the airport Thursday morning, Lexington-Fayette Urban County Airport Board Chair Brian Wells said this roadmap for major upgrades is the result of careful planning and a recognition that air travel is changing.
“Flying out of LEX isn’t just about getting from one place to another, it’s about how easy it is. It’s the convenience of being close to home, the confidence of arriving at the airport with time to spare, and candidly, the simplicity of moving from your car to the gate in a matter of minutes,” Wells said. “That’s just as important as the felling you get when you get here, the genuine hospitality, the friendly faces of your neighbors and the sense that this airport was designed especially for you.”
Initial efforts
The first several phases of the “Future LEX” development program are equal to an approximate $500 million investment over the next five years. Before terminal expansion can begin, the airport will undergo the following upgrades:
- Adding 815 long-term parking spaces
- Relocating and expanding the rental car facility
- Expanding fuel storage capacity and ramp space for overnight aircraft parking for early morning departures
- Relocating the U.S. Customs facility for international and private aviation passengers
- Preparing for the relocation of its air traffic control tower.
In the state’s next two-year budget, the Kentucky General Assembly allocated $5 million to the airport so it could move its air traffic control tower, a feat that also involves federal funding and approval.
According to a presentation delivered to the General Assembly’s Air Mobility and Aviation Economic Development Task Force last summer, the location of the tower is constraining growth and the space is needed for a second passenger parking garage and ground transportation services. Relocation of the tower is estimated to cost approximately $85 million.
In addition, the airport received nearly $20 million for the terminal expansion and remodel.
Increasing the number of gates — so the airport can handle more flights, more passengers and employ more staff — is dependent upon the relocation of the tower.
Those projects mean the Aviation Museum of Kentucky — which is on airport property — will have to find a new home.
This year, the museum received $4 million in addition to another $4 million it was allocated in 2024 from the General Assembly for a new spot. That same year, the airport was allocated $5 million in the one-time spending bill.
It said the money would be used on various projects identified through its master plan which include airfield enhancements, parking upgrades and private aviation development.
Since then, a $17.8 million parking lot expansion has added 815 new, long-term parking spots, a second covered pedestrian walkway to the terminal and a new parking exit plaza.
“We’re grateful for the support of our state legislature, including leadership from state Sen. Amanda Mays Bledsoe, and for U.S. Sen. Mitch McConnell’s support, whose support for funding is helping move Future LEX forward,” said Blue Grass Airport President and CEO Eric Frankl. “This funding allows us to take important early steps and begin the infrastructure needed to support the airport’s future growth.”
Additional project funding will be provided on an interim basis through a line of credit, with the intent to refinance through the issuance of airport revenue bonds.
Last year, the Blue Grass Airport set a new record for passengers, surpassing the record it set in 2024 by nearly 3%. In 2025, the airport saw over 1.6 million passengers, compared to about 1.57 million in 2024. Growth in passengers was attributed to new flights, including a non-stop trip to New York City and expanding its offerings of Florida-based destinations.
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