LEXINGTON, Ky. — Blue Grass Airport announced Wednesday a sweeping multi-phase development initiative called Future LEX, a $500 million expansion program designed to accommodate rapidly growing passenger traffic and modernize facilities over the next decade.

The announcement comes as the airport set a passenger record of 1.6 million travelers in 2025, underscoring the urgency of infrastructure improvements. Annual enplanements are projected to nearly double by 2045, airport officials said.

The ambitious phased approach will begin with foundational work to create space for future development. Initial projects include adding 815 long-term parking spaces, relocating and expanding the rental car facility, expanding fuel storage and ramp space, and relocating the U.S. Customs facility for international passengers. The airport also will prepare for a future Federal Aviation Administration air traffic control tower relocation that will clear space for additional parking and ground transportation in front of the terminal.

Eric Frankl, airport president and CEO, said the improvements reflect the airport's commitment to convenience and service. "With Future LEX, we're building on that foundation," Frankl said. "This is an important investment that allows us to grow thoughtfully while continuing to deliver the experience our passengers know and love."

Within the first five years of development, the airport plans to construct a new eight-gate concourse featuring expanded dining and retail options and a modernized baggage claim area. The project is supported by $24.9 million in state funding and $5 million in federal funding secured through U.S. Senator Mitch McConnell for preparatory work related to the FAA tower relocation.

State Sen. Amanda Mays Bledsoe called the project important for the region. The airport said additional funding will come through a line of credit with plans to refinance through airport revenue bonds.

The expansion reflects broader industry trends at Lexington's airport. Airlines operating larger aircraft added flights and expanded service to new destinations throughout 2025, including United Airlines' expanded Chicago service and Allegiant's new routes to Florida.

The airport supports the region with approximately 4,745 jobs and an annual economic output exceeding $709 million, making airport investment a priority for local leaders. The airport serves as the primary air gateway for a 54-county region in central and eastern Kentucky.

As part of the announcement, the airport also unveiled a new brand identity inspired by Kentucky's rolling hills and incorporating the LEX identifier and an aircraft symbol to represent forward momentum. Additional details are available at bluegrassairport.com/futurelex.