McKinney National Airport has secured its first airline partner, signing a five-year agreement with Avelo Airlines that positions the Texas facility to become the region’s third major passenger airport by late 2026.
The Airline Use and Lease Agreement grants Avelo access to runways, taxiways, aircraft parking areas, and terminal facilities at the airport, located about 30 miles north of Dallas. The deal includes an optional five-year extension and represents a significant milestone in McKinney’s $72 million commercial terminal project, which officials say is progressing on schedule.
“We have reached an important milestone at McKinney National Airport by signing the first Airline Use and Lease Agreement,” said Mayor Bill Cox. “The airport team has been working diligently to deliver convenient and affordable nonstop airline service to our residents and visitors, and we applaud them for their efforts to serve our community.”
The development will transform what has primarily been a general aviation facility into the Dallas-Fort Worth area’s third commercial passenger airport alongside Dallas/Fort Worth International and Dallas Love Field, according to local sources.
Job Creation and Economic Impact
Avelo CEO Andrew Levy emphasized the economic benefits the partnership will bring. “In addition to providing more choices for residents and visitors to McKinney, we will also create well over 100 jobs in the region when we begin service,” he said. “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.”
The airline believes its business model will resonate with local travelers. “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,” Avelo stated.
What’s the scope of this new facility? The planned terminal will span 45,000 square feet with four initial gates, along with parking areas, a taxiway, and other necessary runway equipment. Construction has already begun, with completion expected by late 2026.
Funding and Construction Progress
The McKinney City Council recently approved the final $7.4 million of the $22.4 million initially appropriated in May for the project. The council also greenlit several major contracts, including a nearly $17.7 million agreement with Mario Sinacola & Sons Excavating for Taxiway C and roundabout construction, as well as smaller contracts for terminal area services and materials testing.
Financing for the $72 million endeavor draws from multiple sources, including sales tax revenue, federal loans, and grants. A significant portion comes from a $14.8 million Texas Department of Transportation grant specifically earmarked for eastside airfield projects.
The groundbreaking has already occurred for the passenger terminal, commercial aircraft apron, parking areas, and support facilities. City representatives have confirmed that construction remains on track for the planned late 2026 completion.
Operational Clarifications
Avelo has clarified that its McKinney operations will be strictly commercial passenger services. The airline has previously conducted charter operations, including deportation flights for U.S. Immigration and Customs Enforcement (ICE), but has stated these activities will not affect its McKinney operations.
For travelers in North Texas, the addition of McKinney National to the region’s airport lineup promises more options and potentially lower fares through increased competition. The smaller airport experience—with shorter security lines and easier access than the region’s larger facilities—could be particularly appealing for those living in the rapidly growing northern suburbs of the Dallas-Fort Worth metroplex.
As the terminal rises from the Texas plains over the coming year, both city officials and Avelo executives appear confident that their partnership will take flight with the local community—bringing new connections, jobs, and economic activity to a region already known for its robust growth.
