Editor’s note: This is part of a series of stories marking 50 years of DFW International Airport, previously known as Dallas-Fort Worth Regional Airport, which landed its first ceremonial flight in September 1973 and welcomed its first commercial passengers in January 1974, turning Dallas-Fort Worth into a major aviation hub and sparking an economic surge.
A “betrayal” was what then-New York City Mayor Ed Koch called the move of American Airlines’ headquarters to North Texas in 1978.
For North Texas, it was a historic moment that reshaped the area’s economy and national significance.
“It might have been one of the smartest decisions an airline ever made in aviation history,” said DFW International Airport CEO Sean Donohue. “Who knew what the DFW area was going to grow into? But to establish their headquarters down here, and where we are now — a brilliant decision.”
The move spurred tremendous change in North Texas aviation history, drawing the nation’s largest airline to Dallas-Fort Worth, where the company’s headquarters has remained ever since.
In 1978, the news shook the Big Apple as the carrier announced 1,300 jobs would move to what was then called Dallas-Fort Worth Regional Airport. About 9,000 employees remained in New York.
Albert Casey, American’s chairman and president at the time, said moving the headquarters made sense because of the carrier’s route system and future growth opportunities.
It was shortly after President Jimmy Carter had signed off on deregulating the commercial aviation industry, making airlines free to choose destinations and set their own prices. Today, the decision has led to enormous growth in the region and a booming airport in Texas.
“DFW wouldn’t be what it is today if it wasn’t for American’s commitment,” Donohue said in September. “That’s undeniable.”
Here’s a look at American’s history in Dallas-Fort Worth.
The historical lead-up to a move
On April 15, 1926, legendary aviator Charles Lindbergh flew the airline’s first flight.
The airline carried mail from St. Louis to Chicago. In 1934, Cyrus Rowlett “C.R.” Smith, after whom the carrier named its museum, became president. He helped gather smaller airlines to create American Airways, according to Simple Flying. It later reorganized as American Airlines.
Even before it made its move from New York official, American had a Texas tie. Fort Worth Star-Telegram publisher Amon Carter Sr. was one of the founders of American Airways in 1930, according to D Magazine. A friend of Smith’s, Carter helped with lobbying to make American’s move to Texas a reality later on, according to the Carter Museum.
In 1939, Smith and most managers moved to the New York Municipal Airport, now known as LaGuardia Airport. In 1943, the airline moved its headquarters to Manhattan. In 1961, it moved to 633 Third Ave., where it occupied over one-quarter of the 41-story building.
In 1967, the airline announced it would conduct pilot training on a 90-acre university-style campus between Dallas and Fort Worth. It housed 700 workers at the time.
On Oct. 24, 1978, right before American announced its move to North Texas, Carter signed the Airline Deregulation Act, which changed how the nation’s air carriers operated by removing federal control over airfares, routes and market entry for new airlines.
The move
By 1973, a new airport was on the horizon, and the official dedication was marked with the landing of a supersonic Concorde jet in September of that year. On Jan. 13, 1974, DFW Airport marked the start of operations with its first commercial flight — flown by American.
The company conducted an in-depth operational and economic study, leading to the big move to Texas, according to the CR Smith Museum.
“American needed a major hub in the middle of the country,” said Bob Crandall, former president and chairman of the airline.
In 1978, the move was announced. American Airlines would leave New York City and move its headquarters to Dallas-Fort Worth.
Management and support teams came to Dallas-Fort Worth. In June 1981, American established DFW as a hub.
“There were only two candidates. One was D-FW, one was Chicago,” Crandall said. “We studied both of them, and it was obvious that Dallas-Fort Worth was better for us. We moved from New York to Dallas.”
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In 1988, needing to accommodate more employees, American occupied buildings south of DFW Airport, including facilities at CentrePort on Amon Carter Boulevard that housed management and support teams for three decades.
The move out of New York foreshadowed the movement of many airline headquarters, proving it may be more cost-effective to run an airline out of a lower-cost location, said Samuel Engel, professor at Boston University’s Questrom School of Business and an airline consultant.
“If you look at the time American was moving out of New York, there were a lot of airlines there,” Engel said. “If you look today, you’ve got JetBlue in Queens and you’ve got Atlas in Westchester.”
That same sentiment rings true for other former aviation executives at the time. Sam Coats was vice president and general counsel of Texas International Airlines from 1973 to 1979, and later served on the board of DFW Airport in 2014. Coats said American came to an area of the country that geographically, proved to be a very advantageous area.
“There was unlimited growth potential at DFW,” Coats said. “The New York airports were somewhat constrained, even though American continued to have a major role there. And there were a lot of incentives.”
American’s future at DFW Airport
This year, American signed a new lease-and-use agreement with DFW Airport. The agreement opens up the opportunity for a sixth terminal to open by the end of 2026, as well as upgrades to terminals A and C.
For Donohue, as critical as a new terminal is, he said the airport is especially excited about the renovations in Terminal C, one of American’s most prominent terminals at the airport.
“It’s the busiest terminal in the airport,” Donohue said. “It’s the most centrally located. It is by far the most important terminal to American.”
The relationship between DFW Airport and American remains key to the success of the airport, which is the world’s second-busiest based on passenger traffic.
In 2023, more than 4 out of every 5 passengers at DFW flew American as of Nov. 30, according to airport statistics.
“With [former American CEO] Doug Parker and now with [current CEO] Robert Isom, they’re great partners,” Donohue said. “Do we always agree on everything? No, we don’t. But we respect each other. We work together. They are our biggest customer, and we view them as customers. They pay us a lot of money to operate out of here, and we take that responsibility seriously.”
While construction will begin in the future at DFW, American’s strategic focus remains at the North Texas airport.
At a news conference announcing the new agreement, Isom said it should be a “challenge” that DFW is the nation’s second-busiest airport. American operates over 800 daily flights out of DFW to more than 240 destinations and 25 countries.
“This is where we call home,” Isom said in May. “This is American. It’s DFW. It’s just a great place to be.”