Avelo Airlines just signed a historic five-year agreement to become the first commercial carrier at McKinney National Airport. This groundbreaking milestone transforms the Dallas region’s travel landscape and positions North Texas for major economic growth. The budget carrier’s commitment signals growing opportunity in the emerging aviation hub.
🔥 Quick Facts
- Avelo Airlines signed a five-year use and lease agreement with McKinney National Airport on December 17, 2025
- The new passenger terminal construction is scheduled for completion in late 2026
- Initial terminal will feature four gates with expansion capacity to six gates
- The expansion is expected to create over 100 jobs in the North Texas region
First Commercial Carrier Commits to McKinney’s New Terminal
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Avelo Airlines, a Houston-based ultra-low-cost carrier, becomes the inaugural airline partner for the emerging airport. The five-year agreement with optional five-year extension grants the carrier access to essential infrastructure. Avelo gains use of the runway, taxiways, aircraft parking areas, and maintenance facilities.
The agreement establishes per-passenger fees, fuel charges, and operational rates for the budget carrier. CEO Andrew Levy emphasized the strategic importance of this expansion into North Texas. The airline plans to announce its launch date and nonstop destinations a few months before the terminal opens in late 2026.
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McKinney Mayor Bill Cox praised the milestone in a statement. The airport team has worked to deliver convenient and affordable nonstop service to residents and visitors. Future airline partnerships for 2026 and beyond remain under discussion with additional carriers.
Terminal Infrastructure Supports Major Regional Growth
The $79 million McKinney National Airport expansion project represents a significant infrastructure investment. The new facility includes a 45,000-square-foot passenger terminal with modern amenities. The design accommodates initial operations with four gates and enables future expansion to six gates.
Additional facilities under construction include a new taxiway, 980-space parking lot, and car rental facilities. The city approved budget amendments allocating $7.4 million from the remaining project funds. Construction contracts include taxiway development, terminal services, and construction administration work.
| Project Element | Details |
| Terminal Size | 45,000-46,000 square feet |
| Initial Gates | Four gates (expandable to six) |
| Parking Capacity | 980-space lot |
| Expected Opening | Late 2026 |
Strategic Positioning Within North Texas Aviation Landscape
McKinney National Airport becomes only the third commercial airport serving the North Texas region. Currently, DFW International Airport serves as the central hub for American Airlines, while Dallas Love Field functions as the headquarters for Southwest Airlines. This third facility diversifies travel options significantly.
The airport sits approximately 30 miles north of downtown Dallas, serving as a convenient reliever facility. Avelo Airlines could begin service with as many as three daily flights using Boeing 737 aircraft. The ultra-low-cost model aligns perfectly with McKinney’s objective to deliver affordable fares.
Regional development conversations are already underway with potential additional carriers. Airport officials indicate discussions are progressing with two to four additional airlines regarding future service. This competitive positioning supports long-term economic viability for the facility.
Economic Impact and Job Creation for North Texas Region
Avelo’s commitment creates well over 100 jobs directly in North Texas communities. The expansion supports airline operations, ground services, and airport administrative functions. Regional economic growth extends beyond direct employment to retail, hospitality, and transportation sectors.
CEO Andrew Levy highlighted the airline’s Texas pride in the statement. As a Houston-based company, the expansion represents significant investment in home state operations. The convenient small-airport model combined with everyday low fares positions the facility for strong passenger adoption.
Federal and state funding supports the overall expansion strategy. The $14.8 million Texas Department of Transportation grant covers critical infrastructure components. Local funding includes sales tax revenue and federal loan programs, demonstrating community commitment to commercial aviation.
What destinations will Avelo offer from McKinney National Airport?
Avelo Airlines will announce specific nonstop routes a few months before late 2026 opening. The carrier currently operates over 50 destinations nationwide, primarily on the East and West Coasts. Route selection will reflect regional demand and competitive factors within the Dallas-Fort Worth market.
Avelo’s existing network includes Florida destinations like Daytona, Orlando, Fort Myers, and Fort Lauderdale. The airline also serves Atlanta and various East Coast cities including New Haven, Connecticut. McKinney service announcements will likely balance business and leisure destination priorities.
“We believe that our everyday low fares, convenient and reliable service, combined with an easy-to-use, small airport, is a combination the residents of McKinney and North Texas will enthusiastically embrace. As a proud Texas company, we are especially excited to plant our flag at TKI, just a few hours north of our home in Houston.”
— Andrew Levy, Founder and CEO of Avelo Airlines
Sources
- FOX 4 News Dallas-Fort Worth – McKinney National Airport approval and terminal construction details
- Dallas Morning News – Avelo Airlines agreement, economic impact, and regional aviation context
- McKinney City Government – Official airport expansion announcement and project budget allocation
Patrick Graham is a business and finance journalist translating Wall Street’s complexities into stories that matter to everyday readers. With extensive experience in financial journalism and economic analysis, this expert journalist provides sharp insights on market trends, corporate developments, and the economic forces affecting daily life. His reporting helps readers make sense of the business world’s biggest moves.