Melbourne Airport (MEL) in Australia is working to finalize the details of a major international terminal expansion, following spending 2024 engaging with its customer airlines. The plan will deliver an increased terminal capacity and an enhanced overall experience for passengers, according to the airport. The news comes as the gateway has just celebrated its busiest-ever month for international travel with over 1.1 million international passengers using the airport in December 2024.
In December 2024, the airport handled 3,243,241 passengers in total (excluding transit passengers). This figure represents a 5.1% increase over 2023. International traffic increased in December 2024 by a staggering 10.6% year-on-year to 1,147,533 passengers, while domestic passengers rose to 2,095,708, an increase over December 2023 of 2.3%.
International seat capacity at Australia’s largest 24-hour airport is at an all-time high, rising to 113% of pre-pandemic levels in 2024. Additionally, foreign airlines account for 72% of all international seat capacity into the Australian state of Victoria, and major carriers have been pushing the airport on the current constraints faced by their passengers and the need for further expansion. 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,” said Argus. “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 travelers. 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 formalized by the middle of [2025] so that we can start work as soon as the enabling infrastructure projects are completed.”
The completion of Melbourne Airport’s new elevated road network in 2026 will allow for an expansion of the international check-in and baggage claim halls, while discussions continue on an expanded international satellite that would increase capacity for airline lounges, retail outlets, and passenger waiting areas, and up to five new widebody gates.
Additionally, Melbourne Airport is currently midway through a $500 million project to replace the international baggage system with a new, state-of-the-art tote-based system, which will increase capacity by allowing for any-time check-in and early bag storage. The last expansion of the international terminal was completed in 2011, with the addition of five new gates and 41,000 square meters (441,320sq ft) of additional space.