Reagan National Plans $933M Terminal 1 Overhaul With Southwest Lounge
Washington's airport authority has unveiled plans to replace the aging Terminal 1 'banjo' concourse with a modern facility, though passengers will face extended walking distances under the new configuration.
Ronald Reagan Washington National Airport is moving forward with an ambitious redevelopment of its Terminal 1 facilities, carrying a price tag of $933 million in current dollars, according to plans released by the Metropolitan Washington Airports Authority.
The multi-phase project centers on replacing the distinctive circular 1970s-era concourse known as "the banjo" with a modern nine-gate facility built north of the existing structure. The new concourse, budgeted at $535 million, is scheduled for substantial completion by 2031. Currently serving Southwest Airlines, Air Canada, and Frontier Airlines, Terminal 1 will maintain the same gate count despite the reconstruction.
A significant component involves constructing a new passenger processing headhouse near Terminal 2, where the current taxi staging area sits. This $300 million facility, slated for completion by 2044, will consolidate ticketing and baggage operations while eliminating Terminal 1's dedicated security checkpoint. The reconfiguration means travelers will check in at the new headhouse, clear security at Terminal 2's checkpoint, then walk southward past Terminal 2's B gates through the preserved historic terminal buildings to reach the replacement concourse—a journey approaching half a mile.
The project incorporates preservation of the airport's historically protected 1941 main terminal, with renovations planned for the 1948 southern addition and 1956 baggage building. These structures will form the connection corridor between the new concourse and existing facilities. Once operational, the 1970 TWA banjo structure will be demolished, along with portions of the 1968 American Airlines terminal, creating space for aircraft maneuvering and parking.
Among the planned amenities is a 10,000-square-foot airline lounge, positioned to serve Southwest Airlines as the carrier expands its premium offerings. This would become Southwest's sixth lounge location, joining facilities in Austin, Dallas Love Field, Denver, Honolulu, and Nashville. An additional $98 million has been allocated for enabling work supporting the phased construction.
The extended timeline reflects the complexity of building around active operations while preserving historically significant structures, though the final cost is expected to rise beyond the initial 2025-dollar estimate.