The massive changes coming to Melbourne Airport

Melbourne Airport is planning a dramatic expansion of its international terminal as more overseas passengers stream through Australia’s largest 24-hour airport.

December 2024 saw a record-breaking 1.148 million international passengers, while foreign airlines now account for 72% of all international seat capacity into Victoria.

One more stat to bring this into perspective: international seat capacity into Melbourne is also at an all-time high, at 113% of pre-pandemic levels, driven by new carriers such as Turkish Airlines and a steady build-up by Chinese carriers.

All this is putting pressure on existing facilities, especially as the last expansion of Melbourne’s T2 international terminal was in 2011.

So what’s on the cards for Melbourne T2?

For starters, the completion of the airport’s new elevated road network in 2026 “will allow for an expansion of the international check-in and baggage claim halls.”

Melbourne’s international satellite terminal

The airport says that “discussions continue on an expanded international satellite” terminal to take pressure of the main T2.

The satellite terminal “would increase capacity for airline lounges, retail outlets and passenger waiting areas” and also include up to five new gates for twin-aisle jets such as the Airbus A330 and A350, and Boeing 777 and 787.

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.”

The first step in expanding T2 is a $500m upgrade to the terminal’s baggage handling system, which will increase capacity by allowing for ‘any-time’ check-in and early bag storage.

“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,” Argus adds.

The airline aims to have its T2 revamp plans formalised by the middle of this year so that work can begin “soon as the enabling infrastructure projects are completed.”

Lock in a full year of airport lounge access across 2025 with the HSBC Star Alliance credit card