Melbourne Airport Unveils USD 4.5 Billion International Terminal Expansion Plan

Major Upgrade At Melbourne Airport

Melbourne Airport has revealed details of a planned USD 4.5 billion expansion of its international terminal, following the busiest summer for international travel on record. 

The plans incorporate several projects, including an expansion of both international check-in and baggage claim halls to better accommodate the increasing number of passengers flying in and out of Australia’s largest 24-hour gateway. 

Five new gates will be added to the existing international pier, giving airlines more flexibility to schedule flights to more destinations at the times people want to fly. 

The expansion program will be delivered in stages and is enabled by the opening of new Pick up and Drop off zones in the T123 Transport Hub in September 2026, which will pave the way for the international terminal to push out into the existing forecourt. 

Underscoring the importance of the upgrades, January set a new record for international travel with more than 1.26 million international passengers processed through Melbourne Airport across the month. Because of the challenges of building in a 24-hour live operating environment, the privately funded expansion will be delivered over several years. 

Key components of the project include an expanded check-in hall equipped with high-tech common-user baggage facilities, five new aircraft stands capable of accommodating either five widebody or eight narrowbody aircraft, and a larger terminal footprint featuring enhanced waiting areas, upgraded lounge facilities and expanded retail offerings. The development will also include a larger baggage reclaim area with additional carousels and more space for border agencies, along with an expanded waiting area for meeters and greeters.

Melbourne Airport Chief Executive Officer Lorie Argus said the expanded international terminal would provide an improved experience for passengers and complement the airport’s third runway, which is due to open in 2031. 
“As Melbourne grows, demand for air travel is growing too and we are investing billions of dollars to deliver the infrastructure we need to accommodate that. Increased capacity on our airfield and terminals will allow airlines to schedule more flights to more places, which will give consumers and exporters more choice. We’ve spent several months working collaboratively with the airlines to ensure these plans meet their needs, while also delivering an improved experience for our travellers in both arrivals and departures. Our investment in new infrastructure will deliver much needed extra capacity, but it is only part of the puzzle. We're keen to work with the federal government on upgrades to border processing technology and facilities to help further improve the arrivals experience for international travellers. With just one average daily international flight worth USD 190 million to the Victorian economy every year, these investments will help facilitate more services and secure thousands of jobs around the state,” she said.

Assistant Minister for Citizenship, Customs and Multicultural Affairs, Julian Hill MP welcomed the airport's plans. “Australian airports are critical infrastructure - connecting people with family, friends and work, and welcoming visitors from across our nation and the world. Demand for domestic and international travel at Melbourne Airport is growing rapidly and Victorians and visitors alike will welcome these improvements which can't come too soon. I welcome Melbourne Airport's work to streamline passenger movements across domestic and international terminals. Australian Border Force will continue working closely with industry partners to improve passenger experience and ensure Australia’s airports are fit-for-purpose over the coming decades,” he said.

Preliminary works on the first stage of the international terminal expansion will begin following the opening of Melbourne Airport’s new road network in September.