Australian travelers face significant increases in airfare and airport service costs as the nation’s major airports embark on an unprecedented $20 billion infrastructure modernization program. The Australian Competition and Consumer Commission (ACCC) reveals that Brisbane, Melbourne, Perth, and Sydney airports—which collectively handled approximately 120 million passengers in 2024-25—are initiating massive capital projects that will fundamentally transform the travel experience.
ACCC Commissioner Anna Brakey confirms that consumers will ultimately bear the financial burden of these developments. ‘Substantial capital programs will inevitably create upward pressure on airport charges paid by airlines,’ Ms. Brakey stated. ‘These costs will likely be passed through to passengers via increased airfares as airports seek to recoup their investments.’
The infrastructure blueprint includes Perth Airport’s new terminal and runway development, Melbourne Airport’s third runway project, Sydney Airport’s integration of T2 and T3 domestic terminals, and a third terminal at Brisbane Airport. These projects represent the most significant aviation infrastructure investment in Australia’s history.
Despite the impending cost increases, airports are already demonstrating strong financial performance. The ACCC’s monitoring report indicates the four major airports collectively generated $2.9 billion in aeronautical revenues during 2024-2025, with aeronautical asset margins climbing to 20.8%—the highest level in over two decades.
Sydney Airport emerged as the most profitable facility, earning $584.3 million in aeronautical operating profit, attributed partly to its higher proportion of international passengers who typically generate greater revenue. Perth Airport recorded the most dramatic year-on-year improvement, with aeronautical profit surging 73.7% to $130.6 million.
Parking services also contributed significantly to airport revenues, with the four airports collectively earning $402.1 million in operating profits from parking alone. Margins at Brisbane, Perth, and Sydney airports remained above 60%, prompting the ACCC to advise travelers to book parking online in advance or consider off-airport alternatives for extended stays.
The Australian Airports Association (AAA) defended the investment program as essential for meeting growing passenger demand and maintaining service standards. ‘Major airport infrastructure such as runways and terminal expansions can take many years to plan, approve, and construct,’ said AAA chief executive Simon Westaway. The association emphasizes that airports contribute over $105 billion annually to the Australian economy and support approximately 690,000 full-time equivalent jobs.