$4.5 billion upgrade of Melbourne’s international terminal
By Andrew Curran
Melbourne Airport (MEL) will add five new gates to its international pier as part of an AUD4.5 billion (USD3.2 million) upgrade due to start later this year.
The airport, Australia’s second busiest, announced the new work on February 25, 2026. The new gates will be capable of accommodating five widebody or eight narrowbody aircraft.
The upgrade will also see the terminal's airside footprint expanded with improved waiting areas, lounge facilities and retail offerings.
Landside, passengers will see a bigger check-in hall with high-tech, common user baggage facilities and an enlarged waiting area for friends and family.
The expansion helps address Melbourne Airport’s notoriously cramped international pier (T2). It opened in 1970 and has since grown in a piecemeal fashion.
The airport's international pier was last expanded in 2011, when five new gates were added. However, it has not kept up with the growth in international passenger traffic.
Growing international passenger traffic at Melbourne Airport
Australian Government data from the Bureau of Infrastructure and Transport Research Economics (BITRE) reveals the airport handled 12,072,902 international passengers in the 12 months to September 30, 2025.
More recently, Melbourne Airport says it processed 1,238,829 international passengers in January 2026 – its third highest number on record.
“Demand for air travel is growing and we are investing billions of dollars to deliver the infrastructure we need to accommodate that,” said Melbourne Airport CEO Lorie Argus.
“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 Aero South Pacific’s Melbourne Airport Brief, 38 international airlines connect the airport with 43 overseas destinations. All use T2.
The BITRE data shows Melbourne is one end of three of the top ten busiest international air routes in and out of Australia, including the busiest, Melbourne – Singapore (SIN), which carried 1,763,412 passengers in the 12 months to September 30, 2025, pipping the Sydney (SYD) – Singapore city-pair by just 33,632 passengers.
Over the same 12 months, Australia’s sixth busiest international route was Melbourne – Denpasar (DPS), which carried 1,114,602 passengers. In seventh spot was Melbourne – Auckland (AKL), which carried 1,074,361 passengers.
Overall, Melbourne Airport’s international passenger numbers grew by 7.7% in the 12 months to September 30.
“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,” said Argus early last year.
Work due to start in September
The completion of Melbourne Airport’s new elevated road network in September will signal the start of the international terminal expansion. The welcome end of roadworks will allow the airport to begin work on its international check-in and baggage claim halls.
While this week’s announcement didn’t offer a lot of detail, previous announcements have indicated the five new gates would involve a satellite expansion. Renderings provided along with yesterday's announcement support this.
The upgrade of Melbourne Airport’s international pier will happen in stages over several years and is privately funded.
Unlike its competitor, Sydney Airport, Melbourne Airport operates 24 hours a day. Also, unlike Sydney, Melbourne only has two runways (with one currently closed overnight while maintenance work takes place). However, Melbourne Airport is planning to construct a third runway, which, when complete, will see even more passengers moving through the airport.
Photos: Melbourne Airport.
Contact the writer: andrew@aerosouthpacific.com