Pinellas County commissioners unanimously approved a new five-year deal with Allegiant Air that will bring $22.8 million to St. Pete-Clearwater International Airport (PIE) through 2031.

The deal adds $8.6 million over the previous contract, a 60.6% jump driven by higher rates and projected growth in Allegiant's use of PIE, the St. Pete Catalyst reported Sept. 14. The vote was unanimous.

Revenue Jump Forces Budget Revision

Commissioners spent little time on the agreement before approving it. The revenue boost was significant enough that the county's proposed fiscal year 2027 budget, which initially included about $3.39 million in airline service-charge revenue, will need updating. County budget officials said the figures would be revised to reflect the new agreement.

The Pinellas County Office of Management and Budget said the new rates were developed with both Allegiant and the airport's finances in mind. Officials concluded the fees were necessary to keep the airport fund balanced and meet growing capital needs, including a $145 million terminal modernization project.

New Rates Cover Lease, Landing And Terminal Fees

Under the deal, Allegiant will lease about 3,700 square feet for offices and baggage storage at just under $90,000 per year. The airline will also pay landing fees starting at $1.43 per 1,000 pounds of aircraft weight in fiscal year 2027, rising to $1.48 by 2031. Terminal fees are based on annual departures, with higher-volume carriers paying less per flight.

Airport Keeps Incentives For New Airlines

The airport is keeping incentives in place to attract new airlines. Qualifying new routes can receive waived landing fees and cooperative marketing help for up to two years.

That incentive structure comes after Commissioner Kathleen Peters voiced frustration about PIE's reliance on a single carrier. "I'm frustrated that eight years later, all our eggs are in one basket still," Peters said at an Aug. 12 commission work session. She questioned why the airport hadn't recruited airlines like Frontier or Southwest.

Terminal Overhaul Timeline Takes Shape

Airport Director Mark Sprague told commissioners Aug. 11 that PIE needed to modernize its terminal before it could bring in a new airline that could sustain growth, according to St. Pete Rising. Current plans call for renovations to the existing terminal, an expansion north of baggage claim with new jet bridges, a new 2,000-space parking garage on the airport's Strawberry lot and a roundabout to improve traffic flow. The garage is expected to break ground in January 2027. Terminal construction is anticipated to begin in late 2028 and wrap up by 2032.

Passenger Numbers Hit Record, Then Dip

PIE set an all-time passenger record in 2025 with 2,794,067 travelers, a 14% increase over 2024, according to the airport's annual report.

Traffic through August 2026 is down 1% compared to the same period in 2025, according to the airport's August 2026 passenger report.

Allegiant Adds Three New Nonstop Routes

Allegiant, now in its 20th year at PIE, is scheduled to launch new nonstop service to Philadelphia in October and Columbia, Mo., in November. Seasonal service to Boston begins in February 2027.