The world's best airport is building a mega terminal to ride the travel boom in Asia
Singapore's Changi Airport on Wednesday broke ground on its fifth terminal, which is expected to be operational in the mid-2030s.
The new terminal, which sits on a plot of land 1,080 hectares large, will almost double the size of Changi Airport's existing area.
This will allow the airport to handle 140 million passengers per year from its current capacity of 90 million passengers. Changi, which was most recently awarded Skytrax's "World's Best Airport" in 2025 for the 13th time, welcomed 67.7 million passengers in 2024.
Airports that can handle more than 100 million passengers annually are classified as mega airports, and three out of the 10 existing ones are in Asia, according to airport industry body Airport Council International. These are in Beijing, Tokyo and Shanghai.
ACI projects that air travel will grow nearly 7% over the next 25 years. To cope with the demand, airports in the Asia-Pacific and Middle East regions are poised to undergo extensive development, with combined investments of $240 billion for upgrading existing facilities and building new airports between 2025 and 2035.
Speaking at the groundbreaking event, Singapore Prime Minister Lawrence Wong said the decision to build Terminal 5 was because "over the longer term, air travel is on a rising trajectory, and the bulk of the growth will take place here in the Asia-Pacific region."
Wong also said that with Terminal 5, Changi will aim to connect with 200 cities, up from the current 170 city links it has now.
"[Changi] has connected our small island nation to the world, and brought the world to Singapore. And this connectivity has powered our growth as an air hub, driving industries like tourism, aerospace and logistics," Wong said, pointing out that the aviation ecosystem now contributes 5% of Singapore's GDP.
Competition in the region is also intensifying, Wong noted. For example, airports in Asia are investing significantly in modernizing their infrastructure and adjacent facilities like entertainment and retail spaces.
Hong Kong International Airport commissioned a third runway in November and is expanding the airport's Terminal 2. The airport's goal, it said, is to serve 120 million passengers and handle 10 million tonnes of cargo annually from 2035.
Bangkok's Suvarnabhumi Airport opened a third runway in September 2024, boosting the airport's capacity to handle more flights, following the completion of a new satellite terminal a year earlier.Thailand's airport operator also revealed a further "East Expansion" plan to increase the airport's capacity by 2027.
In South Korea, Seoul's Incheon International Airport completed its "Phase 4 expansion" in December, allowing it to handle an annual passenger capacity of up to 106 million from 77 million, and making it the world's third-largest airport.
Thomas Pellegrin, Transportation, Hospitality and Services Sector Leader from Deloitte Southeast Asia, told CNBC that Asia has become the "barycenter" of air travel growth after the Covid-19 pandemic. This growth in air travel is due to the expansion of the middle class, whose propensity to fly increases faster than income growth, as well as the high urbanization rate in the region, which connects people to air transport infrastructure, he noted.
"The regional increase in passenger demand is now forecast at 7.9% in the near term and 5.1% in the long term, which is the highest worldwide and well above mature markets," Pellegrin added.
This means that Asian airports will need to accommodate roughly twice as many passengers and aircraft by 2043, creating tremendous pressure on the existing infrastructure, he said.
Terminal 5 will also feed into Singapore's plan to increase tourism revenue in the city-state from a record-breaking $29.8 billion in 2024 to $47 billion-$50 billion in the next 15 years.
Its "Tourism 2040" strategy centers on increasing demand from two distinct groups — business and stopover travelers, Grace Fu, Singapore's minister for sustainability and the environment, said in April.
In particular, officials aim to triple tourism revenue from business travelers attending meetings, incentives, conventions and exhibitions, Fu said.
According to Singapore Tourism Board CEO Melissa Ow, transit and transfer passengers currently make up a third of Changi Airport's overall traffic.
Terminal 5, as well as the broader Changi East development — which also includes a third runway and an industrial zone — will allow Singapore to retain and grow its market share as an air hub, increase connectivity and solidify Changi's standing as the best airport in the world, Deloitte's Pellegrin said.
"All these effects combine to give Singapore outsized 'soft power' internationally."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 days ago
- Yahoo
Gold slides as safe-haven demand eases
Gold (GC=F) Gold prices edged lower on Friday morning as renewed optimism over trade negotiations between the United States and key partners, including the European Union, diminished bullion's traditional appeal as a safe-haven asset. Gold futures were down 0.5% to $3,356.10 per ounce, at the time of writing, while spot gold lost 0.3% to $3,360.13 per ounce. 'Basically we are seeing some profit-taking from short-term bullish speculators due to the fact that we now start to see this trade-deal optimism in the market,' OANDA senior market analyst Kelvin Wong said. Investor appetite for riskier assets increased following reports that Washington and Brussels were moving closer to a trade agreement. The deal under discussion could include a baseline 15% US tariff on EU goods, with certain exemptions. The development follows the recent unveiling of a separate trade agreement between the US and Japan. Read more: FTSE 100 LIVE: Markets lower as June heatwave boosts UK retail sales Despite the downward pressure, Wong noted that certain macroeconomic factors continued to lend support to the precious metal. 'The dollar is in a weakening bias and on top of that, we still have the Fed rate cuts pretty much alive at this juncture, which are supporting gold near $3,360 level,' he said. In a surprise move, US president Donald Trump is expected to visit the Federal Reserve later on Friday, adding an element of uncertainty to the US policy outlook. The visit comes amid his repeated criticism of Fed chair Jerome Powell for not easing interest rates more aggressively. The Fed is widely anticipated to keep interest rates on hold at its 29–30 July meeting. However, markets continue to price in the possibility of a rate cut as early as September. Gold, often sought as a hedge during periods of economic uncertainty, tends to perform well in a low-interest rate environment. Nikos Tzabouras, senior market analyst at said: "Gold remains under pressure as risk-on sentiment prevails and the US dollar rebounds. Safe-haven demand fades due to increased trade optimism following the US-Japan deal, which is expected to reduce the impact of tariffs on both the global and US economies. This optimism along with strong US jobs data hurts the case for Federal Reserve rate cuts — a positive development for the greenback but a negative one for non-yielding assets such as gold. "However, the US dollar may face renewed headwinds due to concerns over fiscal policy and the Federal Reserve's independence. Moreover, gold's safe-haven appeal could quickly return, as trade tensions may persist in the lead-up to the 1 August deadline. In addition, continued central bank demand remains a structural driver supporting bullion." Oil (BZ=F, CL=F) Oil prices gained on Friday, buoyed by renewed optimism over US trade talks, which outweighed concerns over an expected uptick in Venezuelan crude supply. Brent (BZ=F) crude futures gained 0.7% to trade at $68.88 per barrel, at the time of writing, while West Texas Intermediate (CL=F) futures climbed by 0.8% to $66.55 a barrel. The prospect of further trade agreements between the US and its global partners, days ahead of the 1 August deadline for a new wave of tariffs, helped support sentiment in the oil market. Read more: NatWest beats on profits and announces £750m share buyback 'This has raised hopes that the US will soon reach a deal with the European Union as well, before the tariff deadline which expires in just over a week's time,' David Morrison, senior market analyst at Trade Nation said. The rise in oil prices was despite reports indicating Trump had allowed Chevron (CVX) to restart operations in Venezuela. 'This should see Venezuelan oil exports increase by a little more than 200,000 b/d, welcome news to US refiners that will ease some tightness in the heavier crude market,' Warren Patterson, head of commodities strategy at ING Group, said in a note. Pound (GBPUSD=X, GBPEUR=X) The pound weakened against both the dollar and the euro in early European trading on Friday after official data showed UK retail sales rose less than expected in June, raising questions about the strength of consumer spending ahead of the Bank of England's next policy meeting. Sterling was down 0.2% to $1.3480 at the time of writing, while also falling 0.3% against the euro to €1.1456. Figures released by the Office for National Statistics showed retail sales, a key indicator of household consumption, increased 0.9% month-on-month. That was below the 1.2% gain forecast by economists, though a marked improvement from May's 2.7% decline. On an annual basis, sales rose 1.7%, narrowly missing the expected 1.8%. Stocks: Create your watchlist and portfolio The data reinforced concerns that the UK consumer sector remains fragile, with growth still subdued despite easing inflation and slightly improved wage growth. Looking ahead, attention is shifting to the Bank of England's interest-rate decision at its August meeting. Markets will be closely watching for any signals on the future path of monetary policy, which could influence sterling's trajectory. The US dollar index ( which measures the greenback against a basket of six currencies, was higher at 97.50. In equities, the FTSE 100 (^FTSE) was in the red this morning, retreating 0.3% to 9,109 points. For more details, on market movements check our live coverage in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Yahoo
Albertsons Can Consistently Beat Its Identical Sales Growth Algorithm Through 2026, UBS Says in Upgrade
Albertsons (ACI) has the potential to consistently beat its identical sales growth algorithm through Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
4 days ago
- New York Post
US carriers shamed in surprising new list of the world's ‘cleanest' airlines
Whether you're a frequent flyer or tentative traveler, no one wants to be on a dirty plane. From tissues left in the seat-back pocket, gross complimentary blankets, crumbs on the tray table and germ-ridden windows, there's plenty to be wary of when boarding a plane. But a handful of airlines really prioritize the cleanliness of the cabins. 3 Taiwan-based Eva Air was named the cleanest airline in the world for 2025. Heorshe – Skytrax, an international air transport rating organization, released its list of the World's Cleanest Airlines for 2025, based on passenger surveys examining the standard and quality of cleanliness of aircraft cabins. Passengers were asked to score seat areas, tables, carpets, cabin panels and lavatories in the survey, which was conducted from September 2024 to May 2025 on a voluntary basis. The top three cleanest airlines were all based in Asia, with Taiwan-based Eva Air rewarded as the cleanest airline in the world, moving up from its No. 3 spot in last year's rankings. In second place was Japanese-based All Nippon Airways (ANA), followed by Hong Kong carrier Cathay Pacific in third. 'We believe a pristine cabin environment is fundamental to our passengers' comfort and peace of mind,' a spokesperson for ANA told Condé Nast Traveler. 'We are dedicated to continuously enhancing our cleaning protocols to ensure every ANA journey is a pleasant and fresh experience.' Rounding out the top five were Qatar Airways and Singapore Airlines in fourth and fifth place, respectively. Aside from the top three, 10 more Asia-based carriers made it into the top 20 — marking 13 total carriers in Asia. 3 Japanese-based All Nippon Airways (ANA) was named the second cleanest in the world. YOSHIKAZU TSUNO/AFP/Getty Images Notably, not a single U.S. airline made it onto the global list of the world's cleanest airlines. However, Skytrax also listed the cleanest airline by region, and Delta Air Lines was named Cleanest Airline in North America 2025. According to Reader's Digest, Delta works hard to maintain a clean cabin with specialized cleaning teams that perform a thorough cleaning process between every single flight. The airplanes also reportedly get deep cleanings overnight that include vacuuming, shampooing the carpets and detailing the seats and tray tables. 3 Hainan Airlines just missed the top five, coming in at No. 6. VanderWolf Images – Here is Skytrax's complete top 20 list of cleanest airlines in the world for 2025:
