Perth is set to become home to a world-class new airport terminal under a multi-billion dollar agreement between Qantas and Perth Airport.

The landmark deal will deliver a major boost to Western Australia’s tourism industry and unlock significant economic growth for the state.

The commercial agreement will see an investment of over $5 billion towards a new terminal at Airport Central, a new parallel runway, two multi-storey car parks, and an airport hotel.

Qantas and Jetstar’s services will relocate to the new terminal when it opens in 2031.

The developments are expected to enable an additional 4.4 million seats to and from Perth by the time the new terminal opens.

This will open up millions of additional seats, providing a major boost for WA’s tourism industry and economic future.

The new terminal will be serviced by the METRONET Airport Central Station, providing an affordable public transport link directly from the airport to the city.

In the interim, upgrades at Terminals 3 and 4 will open up additional capacity while the new terminal is being built.

Jetstar will relocate its domestic services to Terminal 2 from September 2024.

These upgrades will support Qantas in adding new destinations from Perth starting in 2025, including Auckland and Johannesburg.

The new parallel runway is expected to open in 2028, supporting further growth for domestic and international flights.

Premier Roger Cook hailed the commitment as cementing Perth’s place as the Western Gateway to Australia.

“By opening up new flight routes and adding millions of extra passenger seats each year, we’re positioning WA as a major tourist destination in the region,” he said.

Cook added that the development would turn Perth Airport into a world-class travel hub for visitors and Western Australians, putting Perth on the world stage for travellers.

Tourism Minister Rita Saffioti emphasised the importance of the announcement, calling it “one of the most important for aviation announcements in our state’s history”.

Saffioti noted that the government had long advocated for Qantas and Perth Airport to consolidate services at one terminal, and the commercial agreement puts the state on the path to realising that goal.

With direct services from locations like London, Paris, and Rome, Saffioti said the direct international connections into Perth would grow significantly in the years ahead.

The development is part of the state government’s plan to diversify WA’s economy, create long-term jobs, and set the state up for the future.