Allegiant to drop Austin as base in January, citing terminal closure

Low-cost airline Allegiant Air is pulling back from a Texas airport that's seen rapid growth over the last decade.

The Las Vegas-based ultralow-cost carrier will end its aircraft and crew base operations at Austin-Bergstrom International Airport (AUS) effective Jan. 7, 2025, a spokesperson confirmed Monday.

Allegiant will still serve the airport, which it says will remain a key part of its network. However, the airline will no longer base crew and aircraft in Austin, citing "circumstances outside of our control."

South Terminal closure planned

At issue, Allegiant tells TPG, is constrained gate space amid renovation plans in the works in Austin.

Allegiant is based out of Austin's South Terminal, a small satellite concourse that's a short drive from the airport's primary terminal.

Amid Austin's fast growth in recent years, the airport has plans to eventually close the South Terminal to allow for construction of a midfield concourse and new taxiways on the airfield. That's slated to happen no later than 2026.

As part of the closure of the smaller terminal, which opened in 2017, Allegiant will have to relocate to the airport's main terminal — which it is planning to do; the airline plans to continue serving the airport with flights.

However, that move comes with a caveat, the airline told TPG Monday.

"Unfortunately, the gate space we have been offered will not allow us to sustain our base at AUS," an Allegiant spokesperson said in a statement.

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Austin has been an Allegiant base since 2021, when the carrier announced plans to invest $75 million there, with plans to employ at least 89 staff and base three Airbus A320 jets.

It's unclear so far what, if any, Allegiant routes might be affected once it ceases its base operation in Austin come January 2025.

This month, the carrier's Austin route map includes 18 nonstop destinations around the country, according to the below map from aviation analytics firm Cirium.

Austin airport officials respond

In a statement Monday, Austin's Department of Aviation acknowledged Allegiant's decision and reiterated that the carrier's move to end its base in the city does not mean it's exiting the market.

"We remain committed to supporting their nonstop flights from AUS and appreciate the important value they bring to Central Texas travelers," an airport spokesperson told TPG.

A date has not yet been set for the permanent closure of the South Terminal facility, the city said.

Despite rapid growth in recent years, Austin has experienced a few hiccups of late. Virgin Atlantic announced last fall it would cease its Austin nonstop to London's Heathrow Airport (LHR), citing headwinds in the tech industry.

American Airlines also scaled back its service out of the airport, though Delta Air Lines has largely jumped in to fill the void.

Between January and April, passenger traffic at the airport was down slightly versus the same period last year, with a drop of around 0.25%, according to figures released this month by the airport.

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