Budapest Kicks Off €1 Billion Terminal 3 Project to Boost Capacity

Construction has officially commenced on a new Terminal 3 at Budapest Ferenc Liszt International Airport (BUD), marked by a foundation stone laying ceremony on February 20, 2026. The project represents a major development initiative valued at approximately one billion euros, designed to significantly increase the airport's capacity and establish it as the premier aviation hub in Central and Eastern Europe.

The expansion is a direct response to sustained and rapid passenger growth. The primary goal of the Terminal 3 project is to accommodate a projected annual passenger capacity of 25 million by the end of the decade. This ambitious target is underpinned by a strategic public-private partnership between the Hungarian state, which holds an 80% stake in the airport operator, and VINCI Airports, a leading private airport operator holding the remaining 20%.

A Response to Record Growth

Budapest Airport has experienced a strong post-pandemic recovery and continued growth, making the current infrastructure insufficient for future demand. According to official press releases from the airport, passenger traffic reached a record 17.6 million in 2024, followed by 19.6 million in 2025. Just prior to the expansion announcement, traffic figures hit a new record of 20 million passengers. The new terminal is essential to prevent capacity constraints and maintain service quality.

At the foundation ceremony, Prime Minister Viktor Orbán stated the goal is for Hungary to "become the region's leading commercial and tourism hub by the end of the decade." He emphasized the strategic importance of the partnership with VINCI Airports, noting that "the state cannot run an airport on its own" and that experienced partners are crucial for success. This sentiment was echoed by Budapest Airport's CEO, Francois Berisot, who stated, "Significant developments are needed to serve the increasing passenger traffic with high quality. The design of Terminal 3 and some related construction works are already underway, and execution could start soon."

Strategic Partnership and Vision

The current ownership structure was formalized in 2024 when the Hungarian state re-acquired a majority stake, bringing in VINCI Airports to leverage its global operational expertise. This model aims to combine state-backed strategic investment with private sector efficiency. Nicolas Notebaert, CEO of Vinci Concessions, highlighted the existing success of the airport's cargo operations, noting that the Bud Cargo area has already become a leading center for freight traffic between Europe and Asia. The Terminal 3 project is intended to replicate this success on the passenger side.

The development is part of a wider national infrastructure plan. Beyond the terminal itself, the project includes significant upgrades to ground transportation, including a new high-speed rail connection and improved road access, to create a fully integrated transport hub.

Competing for Regional Dominance

The expansion of Budapest Airport is taking place within a competitive regional landscape. Air traffic growth in Central and Eastern European (CEE) countries has consistently outpaced the European average, leading to a race among airports to capture market share. The move by Budapest is seen as a direct effort to compete with other growing airports, such as Warsaw, which is also planning a new central airport (CPK). By investing heavily in modern infrastructure, Hungary aims to attract more airlines, increase route connectivity, and become the primary gateway for both tourism and business in the region.

Project Timeline and Future Outlook

The full completion of all development elements associated with Terminal 3 is expected to take approximately eight years. While the foundation stone has been laid, the project will be executed in phases to minimize disruption to ongoing operations. According to a December 2024 airport press release, the design phase is well advanced, allowing for a swift transition to construction. Further updates on construction milestones and operational timelines are expected to be released through official airport channels. Interested parties can follow developments via the Budapest Airport news page.

Why This Matters

This billion-euro investment is more than an infrastructure upgrade; it is a clear statement of Hungary's economic and geopolitical ambitions. The project aims to solidify the country's position as a critical logistics and tourism hub connecting Western Europe with the East. For the aviation industry, it signals the rise of a formidable competitor in the CEE market, potentially shifting airline network strategies and passenger flows over the next decade. The public-private partnership model also serves as a case study for other nations seeking to fund and execute large-scale infrastructure projects.

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