Houston Airport System Aims to Establish Space City as a Leader in U.S. Aerospace Innovation

Dec. 9, 2024
The airport system's 2024 Economic Impact Study, not yet finalized, shows it had a $40.6 billion annual impact on the region's economy

Dec. 7—Houston Airport officials anticipate more than 63 million people will have traveled to and from Houston by year's end, a record for the airport system.

Last year, the airport system saw more than 60.1 million passengers — George Bush Intercontinental Airport with more than 46.2 million and William P. Hobby Airport with more than 13.9 million. Now, it's expecting the number of passengers to reach 63.3 million by the end of 2024.

"That's an important record for us. ... It shows that we're, again, growing the airport to help meet Houston's needs," said Jim Szczesniak, director of aviation at the Houston Airport System, which manages IAH, Hobby and Ellington airports, as well as the Houston Spaceport.

News of the record number of travelers comes as the airport system works to finalize construction projects and reduce traffic congestion at IAH and Hobby and, Szczesniak said, bring the "space back to Space City."

Szczesniak, who spoke at the Greater Houston Partnership's State of the Airports event Thursday, said the airports and spaceport "are crucial to the region's overall success."

Expected economic impact of Houston Airport

The airport system's 2024 Economic Impact Study, not yet finalized, shows it had a $40.6 billion annual impact on the region's economy. There has also been a reported $560 million in operating revenue.

The labor incomes generated about $13.2 billion and cargo-related output at about $13 billion. About 534,123 metric tons of air cargo was moved through Houston in 2023. International cargo reached about $17 billion.

Ellington contributed $2 billion annually to the region's economy. The Houston Spaceport has helped advance NASA's Artemis program with more than $10 billion in aerospace contracts.

Jack Fischer, retired NASA astronaut and senior vice president of production and operations at Intuitive Machines, told the Chronicle he believes Houston can hone the name "Space City" with more people who have building and design experience, including those who can bring diverse thoughts into the industry.

"Find the best (people) across the board from every walk of life, and that's how you can make a truly special company to accomplish something great," he said.

Taking on challenges within the Houston Airport

Nearly $5 billion of construction projects are underway at IAH and Hobby. The additions include overhauling the concession experience, modernizing the restroom, adding amenities, and building and updating more terminals.

However, the construction has led to the closure of some lanes that travelers use to get to and from the airports.

"Building a new international tunnel in Bush (and) maintaining operations has taught us some valuable lessons. Some of those lessons have been hard," Szczesniak said. "If your family had less than ideal experience at Bush because of our construction, I'm sorry."

During the Thanksgiving travel period, North Terminal Road at IAH was widened to ease congestion for departing passengers. He said the airport system also implemented a cashless parking system with license plate readers for a more efficient parking experience.

The changes reduced heavy traffic at IAH by 80% and severe traffic by 55%, Szczesniak said.

Additionally, the real-time data app Passenger Journey Scorecard, created by the Houston Airport System for internal use, allowed staff to make decisions and improve resource allocation, he said. The app tracks traffic flow metrics, TSA wait times and passenger opinions.

"This tool is a game-changer," he said. "It's helping us manage our business smarter while delivering a better experience for our passengers."

The upcoming construction to look out for at Houston airports

Szczesniak said the airport system is building larger and better terminals to support Houston's role on the global stage. He encouraged people to look out for more eateries set to open, including Houston's Olympic Gold Medalist Simone Biles' restaurant coming next year to IAH.

"The ( Houston Airport System) is an essential part of serving our business community, and they are a big part of how we attract new business investments here," said Steven Kean, president and CEO of Greater Houston Partnership.

IAH Mickey Leland International Terminal is opening in two phases in 2025 with eight lower-level lanes, 11 upper-level lanes, a 17-lane TSA checkpoint and a Dale Chihuly glass sculpture, according to the Houston Airport System.

The IAH Terminal B Transformation project will contribute to United Airlines' future growth by modernizing the airport's oldest terminal, according to the airport system. The transformation includes adding more gates, a new ticketing and baggage hall and a large lounge. The project is expected to be completed in fall 2026.

"Getting substantial progress in Terminal B will ultimately lead to even a better traffic situation out there," Kean said. "That also frees up United to move their international flights into the international terminal and free up some congestion at terminals C and E."

Hobby's West Concourse expansion will add seven new gates, and the baggage claim will be redesigned with skylights that will bring in natural lighting.

IAH Terminals A and D bathrooms were also renovated, which increased passengers' satisfaction ratings to 92% during Thanksgiving, according to the airport system.

The airport system also achieved level 2 of the ACI Airport Carbon Accreditation while reducing emissions by 16% at IAH and 22% at Hobby since 2019 through "smart investments in energy-efficiency project, LED lighting and a new central utility plant at Hobby Airport."

Upcoming global transportation coming to Houston

The Houston Airport System also highlighted multiple upcoming destination options for people traveling from Houston. United will be the hub for Medellin, Colombia, Georgetown, Guyana, and Edmonton; ZipAir for Narita; Southwest Airlines for Seattle; and Allegiant Air for Gulf Shores.

"These routes aren't just flights, they're opportunities to build businesses, grow tourism and showcase Houston on a global stage," Szczesniak said.

Houston's path to becoming the nation's leading aerospace city

Szczesniak said about 1,800 people are working at the Houston Spaceport. In less than 10 years since the creation of the spaceport, there have been advancements in the space technological industry, including the technology built in Houston.

Intuitive Machines, which signed an agreement with the Houston Spaceport, launched its NOVA-C lunar lander to the moon, marking the first time the U.S. returned to the moon since 1971 and the first time a private company landed on the moon, according to Greater Houston Partnership.

Szczesniak and Fischer said Houston could become the leading aerospace city in the nation. Szczesniak also told the Houston Business Journal that vertiports for vertical takeoff and landing aircraft are among the city's priorities. Advanced Air Mobility company Wisk Aero signed agreements with the city of Houston and Sugarland earlier this year to bring autonomous air taxis with IAH, Hobby, Ellington and Sugar Land Regional Airport serving as hubs.

"We're working to build a new taxiway that's going to connect the airport to the spaceport, so that have the ability to move products around globally," Szczesniak said during Thursday's event.

The airport system hopes to connect with international space companies and find strategic ways to grow aerospace manufacturing and operations.

Fischer noted that Space City has three categories that make it stand out against competing areas: location, labor and lifestyle. For those who work at the spaceport, that could mean a better area to truly experience Houston while on the job.

"We've got the first truly urban spaceport," Szczesniak said. "You have the ability to go to work, and then when you're done over there, you can go to the opera, you can go to the Texans games, and you can go to Michelin-star restaurants."

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