Inside Australia’s Major Airport Expansion Programs

Australia

boasts a developed aviation network and one of the world’s oldest and most respected airlines. The country is currently upgrading many of its major and regional airports, and it is also completing work on a long-anticipated second international hub for Sydney. Currently, only Brisbane is served by two functioning international airports, with its second facility being the Gold Coast Airport. Most of the Gold Coast’s international flights are from New Zealand.

The two main airline groups serving the domestic market are the Qantas Group and Virgin Australia. The low-cost domestic airlines, Bonza and Rex Airlines, have either collapsed or downsized, giving Qantas and Virgin even more of the domestic market. Here is what to know about some of Australia’s major airport projects and how it is planning to meet future international and domestic demand.

Examining The Current Australian Aviation Market

In the first quarter of 2025, the international capacity from Australia exceeded 7.1 million seats. This represented a 6.1% increase over the same period in 2024 and a 2.5% increase over pre-pandemic levels. Notably, Australia saw upticks in capacity to Singapore, mainland China, and the UAE. This was aided by China Southern resuming its seasonal Guangzhou to Perth flights, as well as Emirates

reinstating services to Adelaide and expanding capacity to Perth and Brisbane.

However, while Australia’s international capacity is increasing, its domestic capacity is currently in decline, with the sector experiencing constraints and rising airfares. In the first quarter of 2025, Australia’s domestic capacity stood at 18.8 million departure seats, representing a 3.6% year-on-year decline and placing it 2.7% lower than pre-pandemic levels.

Australia’s domestic decline has been influenced by the collapse of Bonza in April 2024, as well as regional carrier Rex Airlines’ bankruptcy. Rex remains operational, but exited major city routes in July 2024. This has reduced Australia’s regional connectivity and increased reliance on the Qantas Group (Qantas, QantasLink, and Jetstar) and Virgin Australia

. These airlines have increased capacity on some key routes, but also increased airfares, benefiting from lower competition.

Australia’s Major Airports

Australia has seven designated ‘major’ international airports: Adelaide, Brisbane, Cairns, Darwin, Melbourne, Perth, and Sydney. Sydney and Melbourne serve Australia’s first and second-largest cities and are the first and second-busiest airports in Australia. Brisbane is the third-largest city in Australia, followed by Perth and Adelaide. Cairns and Darwin are comparatively minor cities when measured by population size, and their airports are comparatively modest.

Australia has another 13 ‘restricted use’ international airports, including Canberra

, which serves the federal capital. Cairns Airport, in Northern Queensland, is somewhat of an outlier as it is the only major international airport to not serve a state or territory capital city. Cairns is also not a major population center but, rather, acts as the international gateway to the Great Barrier Reef. The Gold Coast Airport received 6.3 million passengers in 2024, while Cairns came seventh with 4.6 million.

Australia is currently upgrading and expanding many of its airports, with some of the most notable work happening at Perth Airport and Melbourne. There are also significant works in Brisbane. Perhaps the most notable expansion project currently underway is the construction of a second Sydney airport. Meanwhile, the main airport of the island state of Tasmania is Hobart Airport, which is also expanding.

Perth Airport’s Upgrades

The city of Perth in Western Australia is sometimes named as the most isolated major city in the world. It is served by Perth Airport, which is currently undergoing a major expansion. Perth has been one of the fastest-growing cities in Australia for years, and the airport upgrades will support the forecasted growth in passengers and aircraft movements at the airport. According to the airport contractor Bechtel, passenger numbers are expected to grow from 16 million to 20 million annually by 2030.

Over the coming decade, the airport will see expanded international facilities, the construction of a new terminal to consolidate the Qantas Group operations, the construction of more carparks, and the construction of a third runway. The new Qantas terminal is expected to open in 2031, while the new runway is set to be completed in 2028.

The upgrades in the international airport will feature a new international departures area, new retail areas, new lounges, a new baggage handling system, and new parking and taxiways for aircraft. Currently, Perth Airport

is the only Australian hub offering non-stop flights to Europe, although this is set to change in 2027 after Qantas receives its new A350-1000s and flies non-stop from Sydney to London.

A Closer Look At The Second Sydney Airport

While Sydney may not be the capital of Australia, it is the country’s largest city. Sydney’s aviation demand is expected to double by 2035, and its existing airport is now operating at capacity. To relieve stress on the current Sydney Kingsford Smith Airport, Australia is building a second hub for the city known as the Western Sydney International Airport. The project is one of the largest earthworks projects in Australia, and forms a key part of the Western Sydney Aerotropolis plan.

The site for the Western Sydney airport was officially designated in 2014, settling decades of debate. The new airport will have 24-hour and curfew-free operations. When it opens, it will not replace, but rather supplement, the existing Sydney Kingsford Smith Airport

, which is limited by a legislated curfew and flight caps. The first stage of construction of the new airport began in 2018, and it is expected to open in late 2026.

Western Sydney International will be a modest airport that can accommodate 10 million passengers a year, although the airport’s website states that “as demand grows, we’re ready to expand to meet the needs of travelers and airlines.” The existing Sydney Airport served more than four times that (41.4 million) in 2024. The first domestic services at the new airport have now been confirmed, with the Qantas Group announcing up to 15 narrowbody aircraft to operate from there in the first year.

Melbourne Airport’s Expansion

In December 2024, Melbourne Airport experienced the busiest month in its history, welcoming more than 1.14 million international passengers. International seat capacity at the airport is now at 113% of pre-pandemic levels, and the facility is planning a new runway and upgraded international facilities to meet the demand. The third runway for Melbourne appears to be much more straightforward than the seemingly never-ending debate about a third runway at London Heathrow.

In September 2024, as reported by ABC at the time, the Australian government approved plans for Melbourne Airport

‘s proposed third runway. This paved the road for early works to begin in 2025 if ‘noise amelioration’ conditions are met. The project is expected to cost AU$ 3 billion or around US$ 1.92 billion and is wholly funded by the airport. Construction on the runway is expected to commence in 2025 and be completed by 2031.

Melbourne Airport’s international terminal improvements include an upgraded baggage handling system, increased capacity, a new elevated road network, and more. The airport is now midway through upgrading its baggage handling system, and the new elevated road network serving the airport is expected to be complete by 2026. The airport is also planning to add up to five new widebody gates and is in discussions with airlines for additional capacity for lounges, retail outlets, and more space.

Other Airport Upgrades At Australian Facilities

Other Australian airports are also being upgraded. For instance, Brisbane Airport

is spending AU$ 5 billion (US$ 3.2 billion) on the Future BNE transformation project, which will see both its international and domestic terminals being overhauled. As part of this, the security in the international terminal will be moved to level 4 into a light-filled atrium. The current position on level 3 is in a confined space, with comparatively low lighting and low ceilings.

While most of Sydney’s work is being done at its new second hub, the existing airport is also seeing some improvements. For example, the airport has unveiled its design vision for the much-anticipated overhaul of the T2 Domestic terminal, which is the first major redevelopment in more than three decades of Australia’s busiest domestic terminal. Improvements will focus on next-generation technology, modern facilities, and enable 95% of passengers to get from kerbside to airside in under 15 minutes.

Adelaide is the smallest of Australia’s five largest cities, and its airport is located within the city. Adelaide Airport

is spending AU$ 1 billion (US$ 650 million) on upgrades until 2028 as it seeks to entice more international carriers. Elsewhere, various other smaller airports are also being upgraded. For example, Newcastle Airport is receiving a new runway along with other improvements. Meanwhile, Tasmania’s Hobart Airport is currently doubling the size of its terminal footprint.