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Melbourne flags international terminal expansion as capacity soars

written by Jake Nelson | January 14, 2025

Melbourne Airport has indicated plans to expand its international terminal. (Image: Melbourne Airport)

Melbourne Airport has signalled plans to again expand its international terminal as it marks its busiest month for international traffic on record.

International passengers using the airport in December 2024 numbered 1,147,533, up 10.6 per cent on the previous year, with Melbourne’s international capacity now at 113 per cent of pre-COVID-19 levels. Around 72 per cent of this capacity is used by foreign carriers.

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Almost 2.1 million domestic passengers travelled through the airport last month, up 2.3 per cent on December 2023, with total passengers increasing by 5.1 per cent to 3,243,241.

The increase in traffic is placing a strain on existing infrastructure, airport CEO Lorie Argus said, with its international terminal having last been expanded in 2011.

“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.

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“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.”

The airport is currently in the midst of a $500 million overhaul of its international baggage systems, with a new “tote-based” system to allow any-time check-in and early bag storage in an effort to increase capacity.

It is now in discussions regarding an expanded international satellite with up to five new wide-body gates, as well as more room for shops, passenger waiting areas and airline lounges.

According to Argus, Melbourne Airport’s new elevated road system is expected to be complete next year, which will allow expansion of the international check-in and baggage claim halls.

“The upgrade of our baggage system is the first step of an ambitious expansion of our international terminal,” she said.

“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.”

Melbourne in December 2023 was the first Australian airport to exceed pre-pandemic international capacity in a month that saw it break 1 million monthly international passengers for the first time since the pandemic.

Its third runway, greenlit last year and built parallel to the existing north-south runway and 1.3 kilometres to the west, is planned to open in 2031 and will allow for simultaneous take-offs and landings.

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