CANBERRA, Australia, March 5, 2026 — Infrastructure investment at Australia’s four largest airports increased by more than 43% in the 2024–25 financial year, with the competition regulator warning that the costs may ultimately lead to higher airfares for passengers.
According to the Australian Competition and Consumer Commission’s latest Airport Monitoring Report, Brisbane, Melbourne, Perth and Sydney airports collectively invested AUD 1.5 billion in aeronautical facilities during the period, a 43.6% increase compared with the previous financial year. The spending funded projects aimed at expanding capacity, upgrading terminals and improving airport access.
The regulator said the rise in investment reflects a shift from relatively low spending levels following the COVID-19 pandemic and coincides with major construction works currently underway at all four airports. Over the next decade, the airports have proposed nearly AUD 20 billion in major infrastructure projects.
Planned developments include a new terminal and runway at Perth Airport, a third runway at Melbourne Airport, the integration of Sydney Airport’s T2 and T3 domestic terminals, and a third terminal at Brisbane Airport.
ACCC Commissioner Anna Brakey said continued investment is necessary to support growing passenger demand, noting that the four airports handled about 120 million passengers in 2024–25. However, she said large capital programs could increase airport charges paid by airlines, which may be passed on to passengers through higher airfares.
Airport charges in Australia are not regulated, and the ACCC reiterated concerns that the current monitoring framework is an inadequate constraint on airports that hold significant market power. The regulator said measures such as binding commercial arbitration for disputes between airports and airlines and improved financial data reporting could help address this issue.
The ACCC also suggested that the government consider asking the Productivity Commission to conduct a new inquiry into airport regulation, given the scale of planned investment and growth in aeronautical profits since the last review in 2018–19.
The report found that the four airports recorded record aeronautical revenue of AUD 2.9 billion in 2024–25, despite passenger growth slowing to 4.6%, down from 13.7% the previous year.
Sydney Airport remained the most profitable, generating AUD 584.3 million in aeronautical operating profit and recording a return on aeronautical assets of 20.8%, the highest level observed in more than two decades of ACCC monitoring. Its aeronautical profits exceeded the combined profits of the other three airports.
Perth Airport recorded the strongest improvement in profitability, with aeronautical profit rising 73.7% year-on-year to AUD 130.6 million.
Passenger numbers across the four airports increased by 4.6% in 2024–25, driven largely by international travel, which grew by 9.5% to 40.4 million passengers. Perth Airport recorded the strongest international growth, followed by Brisbane, Melbourne and Sydney. Domestic passenger numbers rose by 2.2% to nearly 80 million.
Passenger surveys indicated that overall service quality was rated “good” at Sydney, Melbourne and Perth airports. Brisbane Airport received a “satisfactory” rating after airlines reported that major construction works had affected the availability and quality of aerobridges, check-in services and baggage processing facilities.
The report also highlighted the continued profitability of airport car parking operations. The four airports collectively earned AUD 402.1 million in operating profits from car parking in 2023–24, with operating profit margins exceeding 60% at Brisbane, Perth and Sydney airports.
