St. Pete-Clearwater International Airport is preparing for major improvements as it works to accommodate years of passenger growth. A new five-year deal with Allegiant Air will bring considerably more money into the airport along the way.
Pinellas County commissioners unanimously approved the operating agreement last week. It is expected to generate $22.8 million for St. Pete-Clearwater International Airport (PIE) through 2031, about $8.6 million more than the previous agreement.
That’s a 60.6% increase, driven by new rates and projected Allegiant use of the airport.
The agreement comes as St. Pete-Clearwater moves forward with a major terminal improvement program. Current plans include renovations to the existing terminal and an expansion north of baggage claim with new jet bridges.
Parking has become another pressure point. Pinellas County is designing a new 2,000-space garage on the airport’s Strawberry parking lot after PIE reached parking capacity during the July 4 holiday in 2025. Plans also call for a new roundabout and signage to improve traffic around the terminal.
County budget documents put the increased Allegiant revenue in the context of those broader needs. Budget officials worked with airport staff on forecasts that balanced airline fees with keeping the airport’s operating fund solvent and meeting growing capital improvement needs through 2031.
The agreement runs through September 2031 and sets what Allegiant will pay for terminal space and its use of airport facilities. The airline will lease about 3,700 square feet for offices and baggage storage for just under $90,000 annually, while also paying fees tied to aircraft landings and terminal use.
Those rates gradually increase over the five-year term. Landing fees, for example, rise from $1.43 per 1,000 pounds of aircraft weight in fiscal year 2027 to $1.48 in 2031.
Terminal fees are based on the number of annual departures, with higher-volume carriers paying less per flight. The agreement also covers Allegiant’s use of gates, baggage areas, aircraft parking, boarding bridges and other airport facilities.
Allegiant gets exclusive use of certain leased spaces, while gates and other common facilities remain under airport control.
Even as the airport collects more from Allegiant, it is keeping incentives available to encourage additional service. Qualifying new routes can receive waived landing fees and cooperative marketing assistance for up to two years.
The financial change from the agreement was large enough that it was not fully reflected in the airport’s proposed fiscal year 2027 budget. That budget initially included about $3.39 million in airline service-charge revenue, and county budget officials said the figures would be updated to incorporate the new agreement.
The county’s Office of Management and Budget said the new rates were developed with both Allegiant and the airport’s finances in mind. Its review concluded the fees were necessary to keep the airport fund balanced and help meet its growing capital needs.
Commissioners spent little time discussing the agreement before approving it unanimously. The deal nevertheless locks in five more years with Allegiant and substantially increases the revenue St. Pete-Clearwater expects to collect as the airport takes on major improvements above and around the terminal.
This content provided in partnership with StPeteCatalyst.com
