Passenger Growth Drives Sydney Airport Upgrades
By Henry Cole.
Sydney Airport is on track to record its busiest year on record, with 24,138,124 passengers passing through in the seven months to July 31, 2025. This is an increase of 2.2% on the 23,615,656 passengers who moved through the airport in the same seven-month period in the previous year.
The growth in passenger numbers follows difficult few years for the aviation sector. Despite this, the airport expects passenger traffic to keep growing.
In September, Sydney Airport released its Preliminary Draft Master Plan 2045. The document sets out an ambitious plan to accommodate 72 million passengers (an increase of 75% on 2025 numbers) over the next 20 years.
The master plan states that the airport expects to generate annual economic activity of around AUD70 billion (USD45.4 billion) and provide over 105,000 direct jobs by 2045. To date, the plans remain on track, with initial projects being completed on time and budget.
Currently, 55 scheduled passenger and cargo airlines fly into Sydney Airport. Those airlines fly to 111 airports in 33 countries. In August 2025, the airport saw 6,920 aircraft movements, processed 41,589 tonnes of cargo, and handled 1.4 million passengers (or 38% of all passenger movements through Australian airports).
Initial Sydney Airport upgrade projects remain on time and on budget
So far, the airport has focused on streamlining the security process for travellers. In terminal one (T1), the airport has installed eleven of a planned fifteen advanced CT scanners, allowing passengers to keep their laptops, liquids and aerosols in their carry-on luggage.
T1 is handles Sydney Airport's international traffic, while terminals two and three (T2 and T3) handle domestic and regional flights.
As part of an AUD200 million (USD129.6 million) investment in improving its security and customer experience, two of seven advanced CT scanners have been installed in T2. Works are also well advanced to install new self-service check in kiosks and bag drop systems in T2. It is anticipated that these new additions will allow passengers to complete check-in and security processes; and reach their gate within fifteen minutes.
Across all terminals, the installation of advanced checked baggage screening infrastructure is on track to be completed and operational by the end of 2025.
Other major developments rolled out throughout this year include improvements to ground transport options, a NSW Government trial to cap taxi fares from downtown areas to airport, an AUD20 million (USD12.3 million) investment in parking and access technology, and new dining and retail options in T3.
Plans to link T2 and T3 at Sydney Airport
The most ambitious of the airport’s long-term growth and redevelopment plans is linking T2 and T3 under the one roof. This will deliver an 12 additional international gates and expanded capacity for domestic and regional airlines.
This part of the airport’s expansion represents the largest expansion in the terminal’s footprint since the 2000 Sydney Olympics. It is designed to provide smoother connections for passengers and greater efficiency for airlines.
It is possible, although not confirmed, that Qantas may shift its entire international, domestic, and regional operations in and out of Sydney to the linked terminals. The airline has previously said it would like to consolidate its Sydney flights to the one terminal. If this does happen, it will be the first time international flights have shifted away from Terminal One.
“The proposed major terminal expansion joining the T2 and T3 Terminals will be the most significant development at Sydney Airport since the Olympics, and will unlock greater capacity across all terminals, more efficient use of our runways, and ultimately get passengers from the ground and into the air more quickly,” said Sydney Airport CEO Scott Charlton.”
Sydney Airport’s expansion plans come ahead of the opening of the new Western Sydney International Airport (WSI), slated to happen in later 2026.
As reported recently by Aero South Pacific, Adelaide Airport (ADL) and Perth Airport (PER) have also recently announced significant planned upgrades to their terminals and other airport infrastructure.
Photos: Sydney Airport.