£1.1bn Stansted Airport terminal expansion to unlock runway potential

Manchester Airports Group (MAG) has confirmed a £1.1bn investment to expand its Stansted Airport terminal by one-third, unlocking the potential of its runway and securing new air routes to business and holiday destinations.

The plans, unveiled by the Prime Minister, Sir Kier Starmer, at the recent International Investment Summit in London, include £600m for the terminal extension, alongside another £500m to improve the existing terminal and wider airport estate. It will also deliver Stansted’s 14.3 megawatt on-site solar farm, which will support the airport’s current and increasing electricity demands.

Manchester Airports Group, as owner of London Stansted, is in the final stages of the procurement process, with construction expected to begin in 2025. The expansion plans already have planning permissions and are in line with previously agreed passenger and flight numbers. The project will take between two and three years to complete.

Transport Secretary, Louise Haigh, said, “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.

Ken O’Toole, Chief Executive Officer of MAG said, “By investing more than £1 billion in Stansted over the next 5 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.

“Aviation is an essential enabler of the success of the UK’s key high-value industries, and we look forward to helping the government achieve the highest sustained growth in the G7 through the sustainable growth of our airports.

Cath Bowtell, IFM Investors Chair, added, “As co-owners of MAG, our commitment to this project reflects our confidence in the airport’s future growth story. As one of the world’s largest infrastructure investors, IFM invests over decades to enhance the value to customers of the UK infrastructure we own and operate.”