Sydney Airport has been given the green light for a major 20-year expansion that will eventually allow more than 72 million passengers to pass through the airport each year.
The Australian Government approved Sydney Kingsford Smith Airport’s Master Plan 2045 on Friday, 14th August, clearing the way for a major redevelopment of its terminals and domestic precinct.
The airport currently handles around 42.5 million passengers a year, meaning the proposed capacity would represent a substantial increase over today’s traffic.
A single terminal experience
One of the biggest changes will be the overhaul of Sydney Airport’s domestic precinct, with the plan proposing an integrated terminal experience for domestic, regional and international travellers.
The redevelopment will merge the existing T2 and T3 domestic terminals, while new facilities will expand capacity across the airport. A northern extension of Terminal 1 will add facilities including baggage reclaim.
At the southern end of the airport, an expansion will introduce new passenger-processing facilities and reconfigure the apron to accommodate next-generation aircraft. The changes will streamline passenger journeys as airport traffic grows.
More than 72 million passengers by 2045
Sydney Airport expects to handle more than 72 million passengers annually by 2045. The forecasted figure will comprise 36.4 million international passengers and 36.2 million domestic and regional travellers.
For comparison, Melbourne Airport handled 36.15 million passengers during the 2024–25 financial year, making it Australia’s second-busiest airport.
Sydney Airport expects its economic contribution to grow to around $70 billion a year and support more than 105,000 jobs. The airport says it needs to plan for long-term passenger, airline, freight and operational demand as Sydney continues to grow.
Sustainability and community impact
The expansion will incorporate the airport’s five-year Airport Environment Strategy, with measures intended to reduce carbon emissions, improve climate resilience and support more sustainable operations.
The plan also includes measures addressing aircraft noise and environmental impacts, alongside continued consultation with communities surrounding the airport.
Sydney Airport CEO Scott Charlton said the approval provides a pathway for the airport to prepare for future demand. “As Sydney grows, Sydney airport must grow with it.”
Infrastructure Minister Catherine King said the airport needed to continue evolving as passenger demand changes. “Kingsford Smith is Australia’s busiest airport, it must remain fit for the future.” “Airports aren’t artworks,” King added. “They’re constantly evolving to become more efficient and improve the passenger experience.”
Planning for Sydney’s next two decades
The preliminary draft of Master Plan 2045 went on public exhibition in September 2025, following consultation with airlines, aviation industry representatives, government agencies, local councils, tourism and business groups and the local community.
The approved plan now sets out the airport’s long-term direction as Sydney prepares for further growth in aviation demand.
Sydney Airport first opened on 9 January 1920 and has operated for more than a century. Its expansion comes as Sydney’s aviation network enters another major period of change, with Western Sydney International Airport also due to begin passenger services in October 2026.
