London Stansted Airport has unveiled plans for a five-year £1.1 billion investment programme including a major extension to its existing terminal.
The airport, which is part of Manchester Airports Group (MAG), secured planning permission to extend its terminal by 16,500 square metres in October 2023.
MAG announced full details of its investment plans for Stansted during the UK government’s International Investment Summit in London on Monday (14 October).
The investment in Stansted, which includes enlarging the departure lounge and security hall, as well as adding new seating areas and an on-site solar farm, will allow Stansted to eventually serve up to 43 million passengers per year. The airport has catered for a record 29.3 million passengers in the 12 months up to the end of September.
Gareth Powell, Stansted’s managing director, said: “Since receiving planning permission last October, our teams have carefully considered every touch point of a passenger’s journey through the terminal to ensure the extension transforms the airport experience by adding more space, choice, comfort and range of services on offer, from check-in right through to arrivals.
“This is a really exciting time for everyone connected with Stansted as we know we have a critical role to play in serving the future capacity needs of London.
“Our aim is to be the airport of choice for even more passengers and we’re confident our investment plans will boost our competitiveness within the London aviation market.”
Construction on Stansted’s terminal expansion and other improvements is expected to begin in 2025, with the project set to take between two and three years to complete.
UK transport secretary Louise Haigh said: “This announcement is a clear signal that Britain is open for business. Transport is central to this government’s core mission of growing the economy.
“This is about giving companies like Manchester Airports Group the confidence to invest, boosting regional and national economic growth and supporting the aviation sector while also meeting our existing environmental obligations.”
Over the past year, Stansted has benefited from the return of British Airways to the airport, while Royal Jordanian Airlines has also launched flights to Amman and Emirates has opened its first lounge at Stansted.
Ken O’Toole, CEO of MAG, which also owns Manchester and East Midlands airports, added: “By investing more than £1 billion in Stansted over the next five years, we will be able to connect people and businesses in London and the east of England to even more global destinations, while welcoming millions more visitors to the UK.”
The announcement was welcomed by Clive Wratten, CEO of the Business Travel Association, who also called for more investment in airports outside the London area.
“We embrace the investment into Manchester Airports Group to assist the wider evolution of Stansted Airport. However, it’s crucial that aviation growth benefits the entire nation, not just London,” he added.
“We urge the government to invest in regional airports to drive nationwide connectivity. A balanced approach will ensure all areas of the UK can thrive, contributing to wider economic expansion.”
Julia Lo Bue-Said, CEO of the Advantage Travel Partnership, said the Stansted announcement was “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,” she added.
“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.”