Sydney airport set for 20 year expansion project

Australia’s busiest airport is set to undergo a 20-year expansion project to raise its annual passenger capacity to more than 70 million travellers.

Sydney airport’s Master Plan 2045 has been approved by the Australian government to “strengthen global connectivity” and drive economic growth across New South Wales.

Once complete, a capacity of more than 72 million annual passengers is forecasted, nearly doubling its current traffic.

This includes 36.4 million international passengers and 36.2 million domestic and regional passengers.

The airport, officially named Sydney Kingsford Smith, first opened on 9 January 1920 – more than 100 years ago – and served 42.5 million annual passengers in 2025.

Australia’s second busiest airport, Melbourne, in the state of Victoria, handled 36.15 million passengers in the year between 2024 and 2025.

As part of the plan, a northern extension will provide additional facilities to Terminal 1, including baggage reclaim, with a southern expansion accommodating new passenger processing facilities and an apron reconfiguration to cater for next-generation aircraft.

The redevelopment will also integrate domestic, regional and international operations by merging T2 and T3 to streamline the passenger experience.

According to the airport, its annual economic contribution is expected to grow to around $70 billion AUD (£37 billion), supporting more than 105,000 new jobs.

It added that “Sydney airport needs to plan for long-term passenger, airline, freight and operational demand”.

A preliminary draft of the Master Plan was first opened for public consultation in September 2025.

Plans incorporate the aviation hub’s five-year Airport Environment Strategy to reduce carbon emissions and promote more sustainable operations.

Sydney airport CEO Scott Charlton said: “As Sydney grows, Sydney airport must grow with it. Approval of Sydney airport Master Plan 2045 provides a clear pathway to plan for future demand and invest in the infrastructure Sydney will need over the next two decades.

“As Australia’s international gateway, this plan ensures we can continue supporting tourism, trade, investment and jobs while delivering the capacity needed for future generations. Importantly, it provides a framework for growing sustainably and responsibly, minimising environmental impacts and working closely with the communities surrounding the airport.”

Minister for infrastructure, transport, regional development and local government Catherine King added: “Kingsford Smith is Australia’s busiest airport, it must remain fit for the future.

“Airports aren’t artworks, they’re constantly evolving to become more efficient and improve the passenger experience, and this new Master Plan maps out the airport’s plan to do just that.”

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