Multi-Million Dollar Mackay Airport Redevelopment Underway
The North Queensland Airports Group is spending AUD60 million (USD39.7 million) to upgrade Mackay Airport (MKY). The project includes improvements to the airport’s runway, terminal, carpark, and commercial precinct.
Measured by passenger numbers, Mackay is Australia’s 16th busiest airport, according to Australian Government data, processing 902,500 passengers in the 12 months to June 30, 2025. Qantas, Virgin Australia, and Jetstar service the airport.
The three airlines link the city, approximately 1,000 kilometres north of Brisbane, with Townsville (TSV), Rockhampton (ROK), and Brisbane (BNE).
North Queensland Airports Group is the operator of Mackay Airport (it also operates Cairns Airport). Recently, JPMorgan Asset Management acquired 100% of North Queensland Airports Group after buying the stakes owned by the Macquarie Bank and the Perron family.
North Queensland Airports Group is now working on what it calls “future proofing” Mackay Airport, which it says will improve the passenger experience and connectivity.
“Our region is growing, and with the 2032 Brisbane Olympics on the horizon, there has never been a better time to enhance our facilities, for the benefit of both locals and visitors,” a statement on the Mackay Airport website reads.
Approximately AUD20 million (USD13.2 million) will go towards improving the airport’s 1,981 metre runway. An overlay of the entire runway is expected to finish by November 2025, with improvement to lighting/grooving completed by February 2026. North Queensland Airports Group says this work will result in significant operational and compliance benefits and “fortify the airport’s long-term resilience.”
The airport terminal will benefit from around AUD3 million (USD2 million) in work, resulting in increased passenger processing capacity, upgraded bathrooms, and a swish-looking observation deck.
North Queensland Airports Group will spend a similar amount expanding and upgrading the carpark next to the terminal. This includes adding an extra 190 parking spaces and increasing capacity for rental car operators.
Around AUSD32 million (USD21.1 million) will go towards developing vacant land bordering Milton Street into a purpose-built business, retail and mixed-use service hub. Of that amount, AUD10 million (USD6.6 million) will fund civil works and the remainder will fund commercial construction. The first tenancies are expected to open next year. However, it will take a decade to fully develop the project. North Queensland Airports Group says the commercial precinct will pump AUD134 million (USD88.6 million) into the local economy over that period.
Upgrades part of a bigger, longer term redevelopment of Mackay Airport
The upgrades are part of a planned AUD900 million (USD595 million) redevelopment of Mackay Airport over the next 20 years, according to the 2022 Mackay Airport Land Use Plan.
That document says North Queensland Airports Group wants to develop the airport’s land holdings as a multimodal integrated transport hub.
“The redevelopment of Mackay Airport will involve the creation of an aviation enterprise precinct that will provide for freight, logistics and distribution facilities,” the land use plan reads.
“A commercial enterprise precinct will be created to attract national commercial operators for diversified non-aeronautical development to realise the potential of this prominent arterial street frontage," it adds. "The terminal business zone will be redeveloped to provide for an extension to the existing terminal building and also provide opportunities for hotel accommodation, bus transit centre, offices, ancillary aviation services, health care facilities, vocational education and training.”
So far, the Australian Government’s Northern Australia Infrastructure Facility has lent North Queensland Airports Group AUD155 million (USD102.5 million) to help fund infrastructure upgrades at both Mackay and Cairns Airport.
“Projects like this strengthen the economy of Northern Australia,” said Minister for Resources and Northern Australia Madeleine King.
Loans from the Northern Australia Infrastructure Facility are also assisting in the redevelopment of Townsville, Darwin (DRW), Alice Springs (ASP), and Ayers Rock/Yulara (AYQ) Airports.
Photos: Mackay Airport.