Melbourne Airport is gearing up for a major international terminal expansion as it works to address surging passenger numbers and capacity challenges.
Over the past year, the airport has collaborated closely with airlines to plan increased terminal capacity and enhance the passenger experience.
December 2024 marked the airport’s busiest month on record for international travel, with over 1.14 million international passengers passing through its terminals. International seat capacity has surged to 113% of pre-pandemic levels, creating pressure on existing facilities. With foreign airlines accounting for 72% of international seat capacity into Victoria, the need for expansion is widely acknowledged by major carriers.
The completion of Melbourne Airport’s elevated road network in 2026 will pave the way for an expanded international check-in and baggage claim area. Plans also include a new international satellite featuring additional airline lounges, retail spaces, waiting areas, and up to five new widebody gates.
Currently, Melbourne Airport is midway through a $500 million upgrade to its baggage system. The new state-of-the-art tote-based system will boost capacity with anytime check-in and early bag storage.
December also saw record-breaking baggage handling numbers for outbound flights, underscoring the urgency of these developments.
Melbourne Airport CEO Lorie Argus said the plans were being developed in response to increasing passenger demand, with the existing international terminal often requiring bussing during peak periods.
“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.
“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 nternational terminal was last expanded in 2011 with the addition of five new gates and 41,000 square metres of extra space.
