Southwest Airlines Brings 2000 High-Paying Jobs to Austin in Major Expansion Deal

Austin Lands Major Economic Win

Southwest Airlines is building a new crew base for pilots and flight attendants that will bring 2,000 new jobs to Austin as part of an economic development agreement struck between the company, the city and the state, with the new base located at Austin Bergstrom International Airport opening in March and initially holding roughly 1,000 employees . By mid-2027, the base will expand to reach its expected size of 2,000 employees, who will be paid an average salary of $180,000 .

Austin and the state offered the Dallas-based airline a package of economic incentives totaling $19.5 million to locate a new crew base at Austin's airport . The governor's office awarded the company a $14 million grant from the Texas Enterprise fund, along with a $375,000 bonus for reserving some of the new jobs for veterans , while the Austin City Council unanimously approved an incentive package for Southwest worth up to $5.5 million over five years, with Southwest receiving $2,750 from the city for every Austin-based hire it makes, as long as the employee lives within city limits .

Officials say the deal will strengthen Southwest's presence at Austin-Bergstrom International Airport, where the carrier already handles more than 40% of all passenger traffic . The expansion comes months after Southwest Airlines closed its satellite Austin flight attendant base in July, impacting about 150 jobs in the area .

Economic Impact and Job Benefits

The financial benefits extend far beyond the immediate job creation. The partnership is expected to bring in nearly $20 million in local tax revenue , creating a substantial boost to Austin's economy. The project will create 2,000 new full-time jobs while retaining 840 existing positions, with all new jobs paying at least the City Living Wage of $22.05 an hour and including health benefits for spouses/domestic partners and dependents .

In exchange for the incentives, the airline plans to add 2,000 high-paying jobs with an average salary of $180,000 and invest in local workforce initiatives, including the city's new Austin Infrastructure Academy . The agreement authorizes up to $5.5 million in possible incentives over five years, but payments will be made only after Southwest demonstrates annual compliance and creates eligible Austin jobs .

Leadership and Strategic Vision

Local and state leaders celebrated the agreement as a model for public-private partnerships. "We're building lives and careers at the same time we're building tarmacs and terminals," Watson said. "Southwest is choosing Austin because our people, our workforce, and our future make us a smart investment. This deal creates thousands of good-paying jobs, improves the passenger experience, and ensures the benefits flow directly to Austin workers, families, and tourists" .

"This investment demonstrates our commitment to Austin and to our customers," said Southwest Airlines President, Chief Executive Officer, and Vice Chairman of the Board Bob Jordan . "Southwest Airlines was born and raised in Texas and has been a core element of the economic growth we have seen in our state," Abbott said. "We are excited to announce that today Southwest Airlines will add over 2,000 high paying jobs right here in Texas" .

Future Growth and Airport Development

These enhancements will boost flight reliability, reduce disruptions, support additional nonstop routes, and improve the overall passenger experience as AUS continues to grow. By investing in new infrastructure, Southwest is also helping build long-term airport capacity at no upfront cost to the City .

The timing proves strategic as Austin continues experiencing rapid population growth and increased demand for air travel. With Southwest already dominating passenger traffic at the airport, this expansion positions both the airline and the city for sustained growth while addressing Austin's need for high-paying jobs that can help residents afford the city's rising cost of living. The phased approach, starting with 1,000 positions in March before reaching full capacity by 2027, allows for measured growth that can adapt to market conditions and workforce availability.