$5 billion approved for LAX to work with local businesses on its revamp
Los Angeles City Council's approval is linked to Los Angeles World Airport’s $30 billion overhaul ahead of the 2028 Olympics.
Los Angeles City Council recently approved $5-billion worth of contracts for Los Angeles World Airport’s $30-billion overhaul ahead of the 2028 Olympics.
City leaders on Wednesday approved 51 contractual agreements between the airport and several local businesses to tackle projects that include the rebuild of Terminal 5, updates at Tom Bradley International Terminal and improvements for how people will navigate the airport’s horseshoe loop on 1 World Way, where construction and traffic typically delay travelers.
“No matter what door you walk out of at the airport, you should see a world-class experience. You should know you’re in L.A. — you should see palm trees, you should see bright lighting, you should see things that are clean and warm and friendly or inviting,” LAWA CEO John Ackerman said. “The signage should be easy to follow — things should be intuitive. And that’s what we’re going to do at the lower level. That will actually be a profound impact on our traveling guests and our employees.”
The five-year contract creates a pool of pre-qualified designers and contractors to create a more streamlined process.
“This strategic initiative will accelerate LAX’s infrastructure upgrades while expanding access for small businesses and creating thousands of good-paying jobs,” Councilmember Traci Park, whose district includes LAX, said in a statement.
The projects won’t slow down plans for the launch of the long-anticipated Automated People Mover, Ackerman said, which is still expected to be completed by the end of 2025 and to open in early 2026. The elevated train would offer travelers a direct connection to Metro.
As the Trump administration makes changes across departments and threatens to pull federal funding for transportation projects, Ackerman said that LAWA has not seen any effect on its projects.
“We avail ourselves of anything that we can, and we’re always looking for federal funding. But we are also a very well-managed organization from a financial perspective,” he said.
Total annual passenger counts have continued to rise at LAX, but numbers have still not reached pre-pandemic levels. LAX saw more than 76 million passengers in 2024; by comparison, the airport saw more than 88 million passengers in 2019.
Officials had expected 110 million passengers in 2028, but now estimate a count closer to 90 million passengers. The decrease in passenger forecasts prompted a shift in planning, with a greater focus on infrastructure updates over terminal expansion.
Most projects will be completed by the Olympics, Ackerman said. Those still underway when the Games arrive will take a pause in construction — offering a rare solace at the airport that Ackerman said has not been experienced since the 1984 Olympics.
“There will be a moment in time in 2028 when there will be no construction at LAX. There will be no jackhammers in the central terminal, there will be no orange cones,” he said. “That is the opportunity that we have to be kind of the first airport team in literally 40 years to get everything done.”
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