Sydney Airport has unveiled plans for its biggest terminal shake-up since the 2000 Sydney Olympics, proposing to link its domestic and international operations in a single precinct by 2045. For travellers who have long endured the shuffle between terminals, the change could mark a turning point in the airport experience.
The major reconfiguration, outlined in the airport’s preliminary draft Master Plan 2045, would see the T2 and T3 domestic terminals linked into a single precinct alongside international services.
It would deliver up to 12 new international gates and two extra gates at T1, expanding overall capacity. Regional, domestic, and international flights would be integrated, addressing one of passengers’ longest-standing frustrations: the hassle of changing terminals.
Instead of navigating buses, long walks or tight transfers, passengers could flow more seamlessly between regional, domestic and long-haul flights. For airlines and agents, it signals the potential for tighter connections and more efficient itineraries.
Sydney Airport CEO Scott Charlton called it “the most significant development at Sydney Airport since the Olympics.”
He explained that the plan would unlock “greater capacity across all terminals, more efficient use of our runways, and ultimately get passengers from the ground and into the air more quickly.”
Beyond gates and connections, the plan also tackles the passenger experience. By simplifying terminal transfers, agents may see fewer missed connections and smoother client journeys, especially important for those coordinating complex itineraries involving regional links and international departures.
Growth projections and economic impact
Sydney Airport is betting big on its future role as Australia’s global gateway, expecting to handle 72 million passengers annually by 2045. That’s an increase of 75 per cent from today, with international travellers, for the first time, making up more than half of all passengers.
This growth cements the airport’s place in NSW’s visitor economy targets and positions it as one of the busiest international hubs in the region.
The employment impact is also significant: more than 105,000 direct jobs on site and over half a million supported across the wider economy. For local communities, that means steady job creation over the next two decades.
Balancing growth with responsibility
Sydney Airport is keen to stress that growth comes with responsibility. Alongside the Master Plan, it has released a new five-year Airport Environment Strategy.
The commitments include cutting emissions, building climate resilience, improving sustainability across operations and working closely with local communities to manage aircraft noise.
Charlton emphasised that the airport is focused on “making sure the benefits of growth are shared,” highlighting the need to balance expansion with environmental and community outcomes.
What it means for agents
For travel agents, the integration of domestic and international operations has clear trade implications. Easier transfers will connect regional and domestic travellers more directly with the world, and bring international visitors into Australia with fewer hurdles. For agents, that means smoother journeys to sell and, with increased gate capacity, more routes, schedules and competitive fares to work with.
The forecast that international passengers will make up more than half of all travellers by 2045 also matters. Outbound leisure, inbound tourism and business travel markets will all feel the uplift. Agents may need to adapt product offerings and partnerships to capitalise on higher demand for international travel products.
Public consultation
Sydney Airport’s preliminary draft Master Plan is on public exhibition until 12 December 2025. Feedback from government, airlines, industry and the community will shape the final version before it is submitted to the Federal Government for approval. Agents and industry stakeholders have an opportunity to contribute, ensuring that the final plan addresses traveller needs as well as trade realities.
KARRYON UNPACKS: Sydney Airport’s plan to merge domestic and international terminals is a potential game-changer for passenger flows and airline schedules. For agents, this means easier connections to sell and more capacity to leverage.
