Stansted has revealed details of a five-year £1.1 billion investment programme, which includes a £600 million extension to the airport’s existing terminal.
The terminal development will help enable the airport serve up to 43 million passengers a year, which in turn will create up to 5,000 new on-site jobs and see the airport’s economic contribution double to £2 billion annually.
Last year the Essex airport served more than 27 million passengers.
The plans were announced at the government’s International Investment Summit on Monday (October 14) and follow Stansted reporting record-breaking passenger numbers for each month in 2024.
Trade figures welcomed the expansion but also called for wider support for regional airports.
Stansted served a record-breaking 29.3 million passengers in the year to September 2024, the busiest 12-month period in the airport’s history, and the extended terminal will improve capacity at busy times and provide the extra space required to accommodate forecast growth.
Planning permission for the extension was secured last October and Stansted released images to showcase its plans for the first time.
Other improvements will be an enlarged security hall and next-generation security equipment; an on-site solar farm; refurbishment of the toilet facilities; and an airfield taxiway upgrade.
Gareth Powell, Stansted’s managing director, said: “We aim to add even more choice of airlines to continue growing our extensive route network.
“We are already welcoming a record number of passengers, with people drawn to the fact we give them a great choice of destinations, at excellent value and with fantastic access into central London and the whole of the East of England.
“We are unique among major airports in operating a single terminal, which means we can give people a simple, efficient and seamless experience.
“These exciting plans mean we are able to retain all those benefits, while introducing an array of new facilities and giving us the space we need to grow.
“We’re confident our investment plans will boost our competitiveness within the London aviation market, as well as supporting economic growth, jobs and vital international connectivity for London and the east of England.”
Over the past 12 months, several new airlines have started flying from Stansted for the first time, including Royal Jordanian and Sun Express, plus the return of British Airways, boosting the number of destinations on the departure board to more than 200 this summer.
Business Travel Association chief executive Clive Wratten said: “We embrace the investment into Manchester Airport Group to assist the wider evolution of Stansted airport.
“However, it’s crucial that aviation growth benefits the entire nation, not just London.
“We urge the government to invest in regional airports to drive nation-wide connectivity. A balanced approach will ensure all areas of the UK can thrive, contributing to wider economic expansion.”
Advantage Travel Partnership chief executive Julia Lo Bue-Said said: “The announcement of a £1.1 billion investment to expand Stansted airport is an important boost for the UK’s outbound travel sector.
“This development will not only improve infrastructure and enhance passenger experience but also create thousands of jobs, stimulate the local economy, and strengthen the airport’s role as a key international gateway.
“The investment comes at a crucial time, supporting sustainable growth in air travel while integrating new technologies and eco-friendly practices. It’s a major step forward in reinforcing the UK’s position as a global hub for travel and trade.
She added: “Continuing to develop and grow our transport infrastructure reflects the high demand for travel from Brits with millions going on holiday each year, as well as a significant increase in demand for business travel, with this year seeing a return to the pre-pandemic levels of 2019. Across our travel agent partners, we are already seeing strong demand as we look ahead to 2025 with departures so far rising by 10%.”