Melbourne Airport is seeking to collaborate with the Federal Government to invest the proceeds of extra tax it will collect from international travellers into improvements to Australia’s border processing facilities and technology.
International passenger numbers at Melbourne Airport dipped 7.1 per cent year-on-year in April, with a 67.6 per cent drop in seat capacity from the Middle East due to the conflict in Iran.
The reduction in flights to Dubai, Doha and Abu Dhabi was somewhat offset by increased capacity from Singapore Airlines and China Southern Airlines as well as higher load factors on other international services.
A total of 3,009,063 passengers passed through Melbourne Airport in April, comprising more than 950,000 international travellers and more than two million domestic travellers.
With flights from the Middle East progressively returning and airline schedules stabilising, international passenger numbers are up 3.7 per cent for the financial year to date.
Melbourne Airport CEO Lorie Argus said the $10 tax increase in the Federal Government’s Passenger Movement Charge presents an opportunity for the government to reinvest it in modern border technology and infrastructure to improve the experience for passengers.
“We’re investing $7.5 billion dollars of private money to deliver a third runway and expand Melbourne’s international terminal to cater for growing demand and improve the experience for passengers,” she said.
“As we modernise our airport, we will continue partnering with the Federal Government to modernise the border and invest in technology that can deliver a faster, more seamless arrival experience for international travellers.”
“Our international passenger numbers have doubled in the past 10 years but our Border Force kiosk numbers have remained the same, and the international arrivals experience has become one of our biggest passenger pain points.
“The first phase of our international terminal expansion project will open later this year with a state-of-the art new baggage system and new Pick up and Drop off locations for Terminals 1, 2 and 3, which will allow us to start pushing the terminal footprint out into the current forecourt and across the existing departures ramp.
“Even with the current global uncertainty, we know we need to invest in the future and build for the long term.
“Flights from the Middle East are progressively returning and schedules are stabilising, with Emirates now flying twice a day between Melbourne and Dubai and Qatar Airways operating double daily flights to Doha from June.
“While this is down on what was being flown before the Middle East conflict began, it represents a welcome return of stability to operations through some of our most important global hubs.”
Passenger figures for April 2026:
| Passengers | April 2026 | April 2025 | Growth (%)* |
| International | 953,595 | 1,026,386 | -7.1% |
| Domestic | 2,055,468 | 2,084,278 | -1.4% |
| Total (excl. transits) | 3,009,063 | 3,110,684 | -3.3% |
*Monthly percentage growth compared to April 2025
Passenger figures for Financial Year to April
| Passengers | Financial Year 2025/26 | Financial Year 2024/25 | Growth (%)* |
| International | 10,486,180 | 10,114,384 | +3.7% |
| Domestic | 20,981,959 | 20,403,138 | +2.8% |
| Total (excl. transits) | 31,468,139 | 30,517,522 | +3.1% |
*Percentage growth compared to FY 2024/25