A new pier (centre) will add five additional aircraft gates plus space for lounges and retail. Image: Melbourne Airport.
Plans for a major upgrade to Melbourne Airport’s International Terminal are close to being finalised following a 12-month engagement process with airlines.
The upgrade will focus on adding greater capacity and an improved passenger experience, and will maximise other improvements including improved road access from 2026, the addition of a third runway from 2031, and a long-awaited rail link to the city from 2033.
Melbourne Airport says its international capacity is running at 113 per cent of pre-pandemic levels, and that foreign airlines account for 72 per cent of all international seat capacity into Victoria. It says the facilities are “under pressure”, and that major airlines “understand the current constraints and the need for expansion”.
The upgrade will include a new $500 million baggage handling system which is underway, a larger baggage claim hall, a new pier with five additional wide-body aircraft gates, more aircraft parking stands, more space for lounges, retail outlets and passenger waiting areas, and greater check-in space.
With Melbourne predicted to eclipse Sydney as Australia’s largest city in the next few years, airport CEO Lorie Argus said the plans were being developed in response to the increased demand.
“We’re setting new records for international passenger numbers and as Melbourne’s population grows, it’s important that our infrastructure grows too,” she said.
“During peak periods we are already experiencing regular congestion in the international arrivals area, so it’s obvious to us that our passengers and airlines need more space.”
Recent year-on-year figures illustrate the rapid growth the airport is experiencing. In December 2024 alone, the airport processed 1,147,533 international passengers, a 10.6 per cent increase over December 2023’s figure of 1,037,138. Domestic passenger numbers grew 2.3 per cent to 2,095,708 over the same period.
Ms Argus said the airport was listening to its customers and working with its key international carriers to understand how it could deliver the best value for them and the best experience for travellers.
“The upgrade of our baggage system is the first step of an ambitious expansion of our international terminal,” she said.
“More gates, more aircraft parking stands, more check-in space, and a larger baggage reclaim hall, combined with construction of Melbourne Airport’s third runway, would allow airlines to add more flights during peak times, which would give consumers and Victorian exporters more choice.
“We hope to have plans formalised by the middle of this year, so that we can start work as soon as the enabling infrastructure projects are completed.”
