Melbourne Airport is finalising plans for a significant expansion of its international terminal to accommodate increasing passenger numbers and improve the travel experience. The move comes after a record-breaking December, which saw 1,147,533 international passengers—the airport’s busiest month for international travel.
International seat capacity into Melbourne Airport now exceeds pre-pandemic levels, reaching 113%, putting pressure on current facilities. Foreign airlines, which account for 72% of international seat capacity into Victoria, support the need for expansion to alleviate congestion and enhance services.
The planned expansion includes enlarging the international check-in and baggage claim halls, enabled by the completion of a new elevated road network in 2026. Additionally, the airport is discussing a new international satellite terminal with increased lounge capacity, retail space, waiting areas, and up to five new widebody gates. Melbourne Airport is midway through a $500 million project to replace its international baggage system with a state-of-the-art tote-based system. This upgrade will allow for anytime check-in and early bag storage, enhancing efficiency. In December, the airport handled a record number of bags for outbound flights.
CEO Lorie Argus emphasised the urgent need for expansion to meet growing passenger demand and Melbourne’s increasing population. “We’re setting new records for international passenger numbers, and during peak periods, we’re already experiencing congestion in arrivals,” Argus said. “More gates, check-in space, and larger baggage reclaim halls, combined with the construction of our third runway, will enable airlines to add more flights during peak times, offering more choices for travelers and exporters.”
The last expansion of the international terminal was completed in 2011. Plans for the new expansion are expected to be finalized by mid-2025, allowing construction to begin once enabling infrastructure is in place. These developments aim to secure Melbourne Airport’s position as Australia’s premier 24-hour international gateway.
