LEXINGTON, Ky. — Blue Grass Airport officials broke ground on a major parking enhancement project designed to handle record passenger growth at Kentucky's third-busiest airport.

The $17.8 million project, which began in summer 2025 and is expected to be completed by late spring 2026, aims to expand parking capacity, improve traffic flow and reconfigure the airport roadway. The improvements include adding 815 long-term parking spaces, constructing a second covered walkway with a passenger promenade, and developing a new exit plaza with additional lanes to accommodate peak flight arrival times.

The expansion comes as Blue Grass Airport welcomed over 1.6 million passengers in 2025, setting a record for the second consecutive year. The 2.7 percent increase from 2024 reflects the airport's continued growth, driven by new air service and expanded routes by carriers including Delta Air Lines, United Airlines, and Allegiant.

Kentucky State Senator Amanda Mays Bledsoe and Lexington Mayor Linda Gorton joined airport officials for the groundbreaking ceremony in May 2025. "Blue Grass Airport is more than a gateway to and from Kentucky—it's a powerful driver of jobs, tourism and economic growth for our region," Bledsoe said at the event.

The airport generates approximately 4,745 jobs and over $709 million in annual economic output for the region. Brian Wells, chair of the Lexington-Fayette Urban County Airport Board, said the expansion positions the airport to "both better meet current demand and plan for the future."

The project benefits from a collaboration of funding sources, including Blue Grass Airport, the Federal Aviation Administration and a $5 million state grant. It was designed in partnership with Hanson Engineers.

Key expansion elements also include reconfiguring a portion of the Terminal Drive loop, creating a designated exit for flight crew and credit card users, installing emergency call stations in parking areas, and constructing a new employee parking lot and underground utility corridor. Short-term, long-term and valet parking options will remain available throughout construction.

The airport has also implemented new technology to enhance the parking experience. License plate recognition now allows ticketless entry and exit, and passengers will soon be able to create online accounts linked to credit cards for contactless parking.