Qantas and Perth Airport (PER) have reached a multi-billion-dollar agreement for a new terminal and runway, positioning the Western Australia airport to become the airline’s second-largest international gateway after Sydney.
Under the 12-year deal, PER will invest around A$3 billion ($2 billion) in new terminal facilities and a parallel runway as part of a wider A$5 billion investment program that also includes car parks, transport infrastructure and a hotel.
The move ends a long-running dispute between Qantas and the airport over fees and capital costs that ended up in the Western Australian Supreme Court.
“This is the largest airport infrastructure deal in our history,” Qantas CEO Vanessa Hudson says. “It will enable us to create a world-class western hub and significantly expand our domestic and international services over the short, medium and long term.”
At present, PER consists of four terminals and a General Aviation precinct. Terminals 1 and 2 are located on the east side of the runways, while Terminals 3, 4 and General Aviation are on the west, separated by a 10-min. drive. Qantas currently operates both its domestic and international services from Terminals 3 and 4.
As part of the agreement, Qantas and subsidiary Jetstar will relocate all services to a new terminal at the Airport Central precinct at Terminal 1, consolidating the split terminals into one complex. The airlines plan to add 4.4 million seats to and from Perth annually by the time the new terminal opens in 2031.
In the interim, PER will invest in upgrades to Terminals 3 and 4 to create additional capacity. Jetstar will also relocate its domestic services to Terminal 2 from September 2024.
Qantas says the Terminal 3 and 4 upgrades will enable it to add services and more destinations, including from mid-2025 resuming nonstop flights to Auckland and Johannesburg, last served in January 2018 and March 2023, respectively.
Additionally, works will also include gate upgrades that could allow Qantas to launch ultra-long-haul routes from PER as part of its Project Sunrise plans. The Oneworld alliance member is expected to receive the first of 12 Airbus A350-1000 aircraft earmarked for Project Sunrise in mid-2026. Qantas and PER have also agreed on the need for and timing of the new parallel runway, which is expected to be open in 2028.
“Perth-London and Perth-Rome are two of the most popular flights on our international network, which gives us confidence in our strategy to ramp up Western Australia flying over the next few years as we receive new aircraft and grow our fleet,” Hudson says.
“With the launch of Perth-Paris in July and Jetstar’s new services into Asia starting later this year, we have a pipeline of growth underway that will mean Perth is on track to become our second-biggest international gateway behind Sydney.”
PER CEO Jason Waters describes the infrastructure projects as “a once-in-a-lifetime investment program” that will change the face of the airport over the next decade. Western Australian Premier Roger Cook added that it would open new routes and add “millions of extra passenger seats each year.”
Routes Asia 2025 co-host PER enjoyed a robust recovery in 2023, registering a record 15.3 million passengers, eclipsing the previous high of 14.9 million set in 2014. Recent route successes have included new services from airlines such as AirAsia, Batik Air, VietJet and Vietnam Airlines.
Qantas is currently the largest operator from PER with a 36.4% seat capacity share, according to OAG Schedules Analyser data. Virgin Australia is the second largest with 28.4% of the market, while Jetstar is third on 7%. PER is Qantas’ fourth-largest market—behind Sydney, Melbourne and Brisbane—and Jetstar’s seventh largest.
Speaking to Routes in March, Stephanie Juszkiewicz, PER's senior vice president for aviation business development, said the airport’s traffic is well balanced and the outbound market remains very strong, particularly for premium leisure. She added that Perth remains the only Australian city that has nonstop connectivity into the UK and Europe.
At present, Qantas operates daily service to London Heathrow and will resume Rome Fiumicino service on June 15. The airline will then introduce a new service to Paris Charles de Gaulle on July 12 in time for the Summer Olympic and Paralympic Games taking place in the French capital. The launch will add an additional 75,000 seats to and from Europe every year.
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