Medford Airport Plans $180M Expansion to Handle Surging Passenger Demand

Rogue Valley International–Medford Airport (MFR) is preparing for a significant infrastructure overhaul with a multi-phase terminal expansion project estimated to cost between $180 million and $184 million. The project, managed by the Jackson County Aviation Authority, aims to nearly double the size of the current 110,000-square-foot terminal to accommodate rapid passenger growth and evolving airline fleet strategies.

Construction is anticipated to begin in late 2026 or early 2027. The first phase alone is estimated to cost between $113 million and $115 million, according to reports from the Rogue Valley Times.

Surging Demand Drives Expansion

The expansion is a direct response to a strong recovery and projected growth in passenger traffic. While the airport handled 979,211 passengers in 2023, it is approaching its 2019 record of 1,087,873 passengers. Forecasts are even more ambitious, projecting traffic to reach 1.5 million by 2032 and nearly two million by 2042.

This growth prompted the Federal Aviation Administration (FAA) to reclassify MFR from a Non-hub to a Small Hub Airport in 2018. As the third-busiest airport in Oregon, the current terminal, completed in 2009, is facing capacity constraints.

Adapting to Industry Trends

Beyond sheer passenger numbers, the project addresses a key industry trend: the upsizing of aircraft. Airlines are increasingly deploying larger mainline jets on routes previously served by smaller regional aircraft. This shift requires airports like Rogue Valley International–Medford Airport to upgrade their facilities with larger gate areas, more robust jet bridges, and expanded passenger holding rooms.

The expansion is part of a broader 20-year master plan that envisions the terminal eventually growing to over 144,000 square feet. This proactive approach aligns with a nationwide trend of modernizing U.S. regional airports to enhance passenger experience and support local economic activity.

Funding for such projects often involves a mix of local and federal sources, including grants from the FAA's Airport Improvement Program. In 2024, MFR secured $6.41 million in FAA grants for taxiway and apron improvements, demonstrating a track record of obtaining federal support for critical infrastructure work.

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