Qantas and Melbourne Airport unlock more flights and international growth

The Qantas Group and Melbourne Airport have agreed key commercial terms that clear the way for additional flights, upgraded international lounges, improved check-in, and the delivery of the airport's third runway.

The agreement will back Melbourne Airport's $4.5 billion international terminal expansion, which adds five widebody gates and underpins the Group's long-term growth plans.

Alongside the terminal works, the agreement locks in a 15-year commitment to Melbourne Airport's third runway, due to open in 2031.

There is also considerable scope for Jetstar to expand. Melbourne Airport is already the low-cost carrier's largest base, running up to almost 1,000 flights a week at peak and carrying around 45 per cent of its total domestic passengers.

Qantas is also designing a new International Business Lounge, set above Terminal 2, giving customers sweeping views across the airport. The lounge will be up to one-third larger than the current space, meeting rising demand from premium customers and Frequent Flyers. It is expected to be complete by 2029.

The terminal upgrades will give Qantas international customers a faster, smoother check-in, dedicated premium check-in areas, and upgraded automatic bag drops, supported by the recently commissioned baggage handling system and early baggage storage facility.

Customers arriving at Australia's largest 24-hour gateway will benefit from an expanded baggage reclaim hall and more space for Australian Border Force operations.

Qantas plans to base some of its Airbus A350-1000LRs at Melbourne Airport, allowing it to launch flights to new international destinations. The aircraft form part of the airline's order for 12 Airbus A350-1000LRs, which sit alongside the Project Sunrise ultra-long-range aircraft.

Qantas and Melbourne Airport expect to finalise the agreements in the coming months.