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Melbourne Airport to pump $4.5bn into international terminal

written by Jake Nelson | February 25, 2026

An artist’s render of Melbourne’s planned international terminal expansion. (Image: Melbourne Airport)

Melbourne Airport is set to embark on a $4.5 billion expansion of its international terminal.

The plans, signalled last year, will see the airport enlarge and modernise its international check-in and baggage claim halls; grow its terminal footprint with improved lounges, waiting areas and retail; and add five new gates to the existing international pier.

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It comes after the airport saw more than 1.26 million international passengers in the month of January, representing a new record.

“As Melbourne grows, demand for air travel is growing too and we are investing billions of dollars to deliver the infrastructure we need to accommodate that,” chief executive Lorie Argus said.

“Increased capacity on our airfield and terminals will allow airlines to schedule more flights to more places, which will give consumers and exporters more choice.

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“We’ve spent several months working collaboratively with the airlines to ensure these plans meet their needs, while also delivering an improved experience for our travellers in both arrivals and departures.”

According to Argus, the privately-funded infrastructure investment will increase capacity but is “only part of the puzzle”.

“We’re keen to work with the federal government on upgrades to border processing technology and facilities to help further improve the arrivals experience for international travellers,” she said.

“With just one average daily international flight worth $190 million to the Victorian economy every year, these investments will help facilitate more services and secure thousands of jobs around the state.”

Assistant Minister for Citizenship, Customs and Multicultural Affairs, Julian Hill, welcomed the news, saying the upgrades will make life easier for passengers.

“Australian airports are critical infrastructure – connecting people with family, friends and work, and welcoming visitors from across our nation and the world,” he said.

“Demand for domestic and international travel at Melbourne Airport is growing rapidly and Victorians and visitors alike will welcome these improvements which can’t come too soon.

“I welcome Melbourne Airport’s work to streamline passenger movements across domestic and international terminals.

“Australian Border Force will continue working closely with industry partners to improve passenger experience and ensure Australia’s airports are fit-for-purpose over the coming decades.”

Works are slated to begin following the opening of Melbourne Airport’s new road network in September and will be carried out over several years.

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