AUSTRALIA. Melbourne Airport has announced it is nearing the completion of plans for a major international terminal upgrade to address the surge in passenger traffic at one of the country’s busiest travel hubs.
The project, developed in collaboration with airlines over the past year, is designed to enhance terminal capacity and elevate the passenger experience.
The airport served more than 1.14 million international passengers last month, up +10.6% from November, setting a new record for the busiest month in its history. This added to the total passenger count of 3.2 million for the month, a +5.1% increase from November. In 2024, the airport saw 18.3 million passengers, +3.5% growth year-on-year.
The airport company highlighted a +113% increase in international seat capacity from pre-pandemic levels, achieving a record for Australia’s largest 24-hour airport and further stressing its infrastructure.
With foreign airlines making up 72% of all international seat capacity into Victoria, major carriers recognise the current constraints and the need for expansion, Melbourne Airport said.
Due for completion in 2026, the airport’s new elevated road network will help expand international check-in and baggage claim areas. Plans for an expanded international satellite remain under discussion, which will increase capacity for airline lounges, retail outlets, passenger waiting areas and up to five new widebody gates.
Melbourne Airport noted that it is halfway through a A$500 million revamp of its international baggage system, introducing a state-of-the-art tote-based solution that will expand capacity by allowing anytime check-in and early bag storage.
The airport set new records for outbound flight baggage handling in December.
Plans are in place to address the growing passenger numbers, with bussing frequently needed at the existing international terminal during peak times.
Melbourne Airport CEO Lorie Argus said: “We’re setting new records for international passenger numbers and as Melbourne’s population grows, it’s important that our infrastructure grows too. 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.
“We’re listening to our customers and working with our key international carriers to understand how we can deliver the best value for them and the best experience for our travellers. The upgrade of our baggage system is the first step of an ambitious expansion of our international terminal.
“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.”
The last expansion of the international terminal was completed in 2011, with five new gates and 41,000sq m of additional space. ✈
