MELBOURNE AIRPORT: $4.5 billion international terminal expansion

Melbourne is about to get a bigger front door to the world with plans for a $4.5 billion expansion of its international terminal. The project will expand check-in areas, baggage halls, and aircraft gates. These innovations are all aimed at easing pressure on Australia’s largest 24-hour airport.

In January 2026, more than 1.26 million international passengers passed through Melbourne Airport, setting a monthly record that underscores how sharply global travel has rebounded.

Five new gates, more widebody space

The centrepiece of the expansion is the addition of five new gates at the existing international pier. These gates will be supported by five new aircraft stands capable of handling either five widebody aircraft or up to eight narrowbody jets.

For passengers, that means more long-haul capacity and greater scheduling flexibility. For airlines, it means fewer peak-hour bottlenecks, particularly during evening departure banks to Asia and the Middle East.

Check-in and baggage halls to expand

The international check-in hall and baggage reclaim areas are also set to expand, incorporating previously announced high-tech common-use baggage systems to speed processing and reduce congestion.

Arrivals will see additional baggage carousels and more space allocated to border processing agencies.

There will also be an expanded waiting area for meeters and greeters, a small but meaningful improvement in an airport that can feel cramped during peak arrival periods.

The forecourt

The expansion will roll out in stages, beginning after the opening of new pick-up and drop-off zones in the T123 Transport Hub in September 2026.

That new road network effectively clears space for the international terminal to extend into the current forecourt area — a logistical necessity in a 24-hour airport where shutting down sections for construction simply isn’t an option.

Because Melbourne operates around the clock, building works will stretch over several years.

Third runway alignment

The terminal expansion complements Melbourne Airport’s planned third runway, due to open in 2031.

More runway capacity without terminal space would create a bottleneck. This project is designed to ensure aircraft movements and passenger processing grow in tandem.

Melbourne Airport CEO Lorie Argus says the expansion is essential to meet long-term demand, noting that even one additional average daily international flight contributes an estimated $190 million annually to the Victorian economy.

For travellers

In practical terms, the expansion project promises:

• Less congestion in check-in halls
• More lounge and waiting space
• Faster baggage reclaim

New capacity will also enable the launch of new international routes. The airport has also flagged working with the federal government to upgrade border processing technology. That should translate into faster SmartGate and customs clearance times.

Lounge changes

As part of the sweeping $4.5 billion overhaul of Melbourne Airport’s T2 international terminal, travellers can expect a dramatic rethink of the lounge experience.

The expanded footprint will create a light-filled, upstairs lounge precinct replacing today’s often cramped, window-starved spaces, with all departure gates aligned on the same level for a more logical flow from check-in to boarding. Among the first beneficiaries will be Singapore Airlines, which will shift from its current downstairs ‘dungeon’ into a purpose-built lounge on the upper level offering around 30% more space. It’s hoped to open in late 2026 or early 2027. That’s a welcome relief ahead of its five daily Singapore Airlines services.

2PAXfly Takeout

The broader redevelopment also promises expanded waiting areas and additional retail woven around the new lounge zone, alongside five extra gates to ease peak-hour pressure. For frequent flyers used to T2’s bottlenecks and overflowing lounges, the promise of natural light, more breathing room and a smoother path from security to sip-and-sit can’t come soon enough.