TKI signs its first airline partner as Avelo Airlines commits to the new passenger terminal, marking a milestone amid expansion plans and opposition.
The city of McKinney this week finalized an Airline Use and Lease Agreement (ULA) with Texas-based Avelo Airlines, making the carrier the first to commit to operations at TKI’s new passenger terminal, which is currently under construction. Avelo’s agreement supports the development and operation of the terminal and adjacent facilities.
The five-year agreement, which includes an optional five-year extension, establishes the framework for Avelo and future airlines operating at the airport. Under the ULA, carriers will have access to runways and taxiways, aircraft parking and maintenance areas, and non-exclusive terminal spaces such as check-in counters, boarding gates and flight information displays. The agreement also designates exclusive office and administrative space for airline use.
“We look forward to working with our airline partners in 2026 and beyond to bring air service to North Texas,” said Mayor Bill Cox.
In addition, the ULA sets rates and charges associated with operating at TKI, including per-passenger use fees and aircraft fuel fees.
Avelo has not yet announced when it will begin service or which nonstop destinations it plans to offer from McKinney. The airline is expected to release those details a few months before the commercial terminal opens.
Avelo Airlines Founder and CEO Andrew Levy said, “We are very excited to be the launch airline at TKI. 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. 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.”
Airport officials say the agreement is a key milestone in expanding air service options for McKinney and the broader North Texas region, as the airport works to attract additional nonstop flights and airline interest.
“This project is gaining momentum, and it’s exciting to see the city’s long-term planning turn into visible progress towards delivering a commercial terminal that will strengthen our economy and increase connectivity and convenience for our residents,” Cox said.
Construction of TKI’s passenger terminal, commercial aircraft apron, parking areas, and other support facilities continues and is currently on schedule to be completed by late 2026.
The announcement follows a series of recent developments at TKI.
In July, city and state leaders broke ground on the new passenger terminal, which officials say will drive economic growth in McKinney and throughout Collin County. In September, the airport opened a new U.S. Customs and Border Protection facility, enhancing its ability to support international operations.
Airport officials estimate the terminal will initially serve about 200,000 passengers per year. With expanded gate capacity, the airport could eventually accommodate more than 1 million travelers annually.
The expansion, however, has drawn opposition. Ben Brown, a member of the North Texas Conservation Association, said his group filed a lawsuit against the Texas Department of Transportation (TxDOT) in May. The lawsuit alleges TxDOT did not fully evaluate the long-term environmental impacts of the airport expansion, including concerns related to noise pollution and air quality.
