Athens Airport Expansion to Boost Capacity to 40 Million by 2032

Athens International Airport Redesign: A Transformative €1.3 Billion Expansion to Meet Surging Demand

Athens International Airport is embarking on one of Europe’s most ambitious aviation infrastructure projects, a comprehensive €1.3 billion redesign and expansion that will transform Greece’s largest airport into a modern gateway capable of handling up to 40 million passengers annually by 2032. This undertaking is a strategic response to unprecedented growth, with the airport recording 31.85 million passengers in 2024, marking a 13.1% increase from the previous year. The project encompasses not only substantial physical expansion but also integrates sustainable design principles and innovative architectural concepts, aiming to blend Athens’ cultural heritage with contemporary passenger needs.

The expansion, led by the international Anemos consortium (including Grimshaw, Haptic, and K-Studio), introduces design elements such as Mediterranean gardens within oculus atriums, terraced seating areas, and extensive natural light throughout the terminal complex. The transformation is being implemented while maintaining full operational capacity, a logistical challenge that underscores the project’s sophistication and the airport’s critical importance to Greece’s tourism-dependent economy.

Historical Background and Current Operational Context

Athens International Airport Eleftherios Venizelos was designed and built by Hochtief, opening in 2001, initially to serve the Athens 2004 Summer Olympics. Located 20 kilometers from the city center, it is Greece’s largest aviation facility and the primary entry point for the country’s thriving tourism sector. The airport operates under a concession agreement, extended in 2019, currently running until June 2046.

The airport’s dual-till regulatory structure classifies activities into “air” and “non-air,” with about 78% of revenues from regulated activities. Its catchment area covers approximately 6 million people, extending at least 250 kilometers from Athens. Athens Airport has shown remarkable resilience, especially post-pandemic, and is now connected to 157 destinations in 55 countries, served by 68 carriers. It is ranked as the 9th most connected hub in Europe (OAG 2024).

The current infrastructure was designed for 26 million passengers annually, a threshold exceeded in recent years due to robust tourism recovery and increased connectivity. In 2024, the airport handled 31.9 million passengers, a 13.1% increase over 2023, placing Athens among the fastest-growing European airports.

The €1.3 Billion Expansion Project Details

The expansion is one of Europe’s largest aviation infrastructure investments, aiming to increase capacity from 26 million to 40 million passengers by 2032. It is structured as a phased development, ensuring uninterrupted operations throughout construction. The first phase, already underway with a €650 million budget, will boost capacity to 33 million by 2028. This phase includes an 81,000 m² terminal extension, 32 new aircraft parking stands, two new boarding bridges, and a seven-story parking garage with 3,365 spaces.

The second phase will add 69,000 m² of terminal space, targeting the 40 million passenger mark by 2032. This phase focuses on expanding retail and dining zones, passenger areas, and apron space. Commercial space will increase from 13,500 m² to 34,000 m², a 150% jump, substantially boosting non-aviation revenues.

Project management is handled by a consortium of AECOM, Hill International, and Salfo & Partners, with construction led by TERNA-REDEX. Financing is secured via €806 million in bond loans from Alpha Bank, with repayment extending to 2042. The airport’s strong financial performance underpins this ambitious program.

Architectural Design and Innovation

The Anemos consortium’s vision blends modern design with Athens’ cultural identity. The expansion features two dramatic oculus atriums: the North Oculus, with a Mediterranean garden in a 24.5-meter-high space, and the South Oculus, offering terraced seating and landscaped areas. These spaces are designed to create memorable “Athenian moments” for travelers.

The main terminal’s new western landside identity features a modular facade with vertical stone fins and a “lifted” internal colonnade, maximizing natural light and aiding passenger orientation. Six new stone portals will guide passengers to check-in and departures, balancing modern aesthetics with harmony to the existing structure.

Natural light is a core design principle, with systems to diffuse daylight deep into busy spaces, reducing reliance on artificial lighting and enhancing comfort. The satellite terminal will be repurposed as an Extra Schengen facility, with improved circulation and daylight integration, reflecting a comprehensive approach to operational efficiency.

“The expansion will transform the airport into a cultural gateway, with Mediterranean gardens and natural light celebrating Athens’ heritage while serving modern travel needs.”

Financial Performance and Growth Trajectory

Athens Airport’s financials are robust. In 2024, total revenues reached €665.5 million, a 10.2% increase over 2023. Adjusted EBITDA rose to €424.8 million (up 15.7%), with a margin of 63.8%. Net profit increased to €235.9 million. Net debt stands at €623.1 million, with a conservative Net Debt/EBITDA ratio of 1.5x.

Revenue is forecast to grow by over 2% annually until 2028, reaching €673.4 million, as traffic and non-aviation revenues rise. The expansion is financed entirely by debt, with leverage expected to peak at 2.9x Net Debt/EBITDA by 2028, within management’s target range. Dividend policy is generous, with €194.8 million distributed for fiscal 2024 and proposals for 100% net profit distribution.

The 2024 IPO was oversubscribed 12 times, valuing the company at €2.46 billion and returning €730 million to the Greek State. CEO Yannis Paraschis projects continued single-digit growth, with strategic focus on Asian markets, including new connections to China.

“The airport’s financial strength and successful IPO reflect investor confidence in its growth prospects and Greece’s tourism sector.”

Sustainability and Environmental Commitments

Athens Airport is a leader in sustainability, achieving Carbon Neutral certification in 2016 and committing to Net Zero Carbon emissions by 2025, well ahead of the European airport target of 2050. The “Route 2025” initiative aims for 100% self-produced electricity via on-site photovoltaic installations, covering about 90% of the airport’s carbon footprint.

The airport’s 16-megawatt photovoltaic park is Greece’s largest for self-production, generating 27,500 MWh annually and avoiding 71,500 tonnes of CO2 emissions. Combined with an 8-megawatt park, two-thirds of the airport’s electricity comes from renewables. A further 45-megawatt installation is planned for completion in 2025, with battery storage to maximize self-consumption.

Since 2005, the airport has reduced its carbon footprint by 60%, despite rising passenger numbers. The expansion targets LEED Gold certification, with passive design, low-carbon materials, modular construction, and advanced water and waste systems. These efforts position Athens Airport as a sustainability leader in global aviation.

“Athens Airport’s Route 2025 program and renewable energy investments set a benchmark for sustainability in the aviation sector.”

Economic Impact and Tourism Context

The airport is vital to Greece’s tourism-driven economy. In 2024, Greece welcomed 40.7 million international visitors (up 12.8%), generating €21.6 billion in revenues. The Attica region, served by Athens Airport, attracts the most visitors. Non-resident overnight stays reached 240.8 million, with growth led by EU travelers.

The expansion’s economic impact extends beyond aviation, with an estimated 180,000 new direct and indirect jobs created nationwide. Diversification toward Asian markets is a strategic priority, with direct flights to Shanghai and Beijing and more planned.

The airport’s commercial expansion, from 13,500 m² to 34,000 m², will boost non-aviation revenues, aligning with global trends of airport retail and hospitality development. As the 9th most connected European hub, Athens Airport is well placed to support ongoing tourism growth and regional economic development.

Ownership Structure and Governance

Athens Airport’s ownership combines public and private interests. AviAlliance (Germany) and Copelouzos Group are private shareholders, with AviAlliance gaining sole control after European Commission approval. The Hellenic Republic holds a 55% stake; private investors hold 45%.

The 2019 concession extension involved a €1.403 billion payment, with net proceeds of €1.132 billion to Greece’s privatization program. The agreement includes revenue-sharing provisions and a three-phase investment Master Plan with clear capacity and investment triggers.

Regulatory oversight follows a dual-till framework, providing exclusive operational rights and clear pricing and investment parameters. The 2024 IPO introduced new governance considerations, enhancing transparency and public participation through listing on the Athens Stock Exchange.

Implementation Timeline and Phases

The expansion follows a phased timeline to minimize disruption. Phase One, underway through 2028, includes the €650 million terminal extension and support infrastructure. Key construction contracts are set for signing in January 2026, with early deliverables such as the aircraft apron and parking garage targeted for Q2 2027.

Phase Two will commence after Phase One, aiming for completion by 2032 and full 40 million passenger capacity. Tender submissions for sub-projects are due in early 2026, with project management ensuring seamless integration with ongoing operations.

Long-term plans envision capacity for up to 50 million passengers by 2045, focusing on terminal facilities as the two-runway system can accommodate this volume. This forward-looking approach ensures flexibility to adapt to future aviation trends.

Industry Context and Global Positioning

The expansion comes amid a dynamic global aviation recovery. Athens Airport’s 13.1% passenger growth in 2024 far outpaced the European average of 1.8%. Among mega airports (>25 million passengers), Athens ranked second in growth, behind only Rome Fiumicino.

As the 9th most connected European hub, Athens competes with major airports while serving unique Mediterranean and leisure markets. The expansion enhances this position, supporting both hub and origin-destination traffic.

The project’s sustainability, commercial expansion, and capacity planning align with global trends, positioning Athens Airport as a model for modern, environmentally responsible, and financially sustainable airport development.

“Athens’ expansion program sets new standards in combining sustainability, operational efficiency, and cultural identity for airports worldwide.”

Conclusion

The €1.3 billion expansion of Athens International Airport is more than a capacity upgrade, it is a transformative investment in Greece’s future as a global tourism and business hub. The project’s phased approach, innovative design, and strong financial foundations balance operational needs with stakeholder interests, ensuring the airport remains competitive and resilient.

With ambitious sustainability goals, cultural integration, and economic impact extending nationwide, Athens Airport’s expansion positions it as a leader in European aviation. Its successful implementation will serve as a benchmark for future airport projects seeking to blend growth, environmental stewardship, and regional identity.

FAQ

What is the goal of the Athens Airport expansion?
The expansion aims to increase capacity from 26 million to 40 million passengers annually by 2032, while enhancing passenger experience, sustainability, and commercial offerings.

Who is leading the design and construction?
The Anemos consortium (Grimshaw, Haptic, K-Studio, and others) leads the design, with project management by AECOM, Hill International, and Salfo & Partners, and construction by TERNA-REDEX.

How is the project financed?
Financing comes from a €806 million bond loan, strong cash generation, and proceeds from a successful IPO, with the remainder from operational revenues and debt.

What sustainability measures are included?
The airport targets Net Zero Carbon emissions by 2025, utilizes extensive photovoltaic installations, and aims for LEED Gold certification for the expansion.

How does the expansion impact Greece’s economy?
The project is expected to create about 180,000 direct and indirect jobs and support continued growth in tourism, which is a key driver of the Greek economy.

Sources

• Greek Reporter
• Athens International Airport Press