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Pearson Airport launches $1.5 billion terminal modernization focusing on passenger flow

Phase two of Toronto's multi-billion dollar airport expansion will upgrade signage, gates, customs, baggage processing, and passenger lounges at Terminals 1 and 3.

· 2 min read · HOC Toronto Desk
Pearson Airport launches $1.5 billion terminal modernization focusing on passenger flow
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Toronto Pearson International Airport launched the second phase of a multi-billion dollar construction project aimed at modernizing and expanding the facility Tuesday.

The $1.5 billion phase will focus on improving signage and increasing spaciousness in common passenger areas at Terminal 1 and 3, according to CEO Deborah Flint. "This particular program is about reliability," she said. "It's about digital enablement and capacity at Pearson, providing more space, ease, fluid movement for passengers, journeys that are traveling outbound, as well as those that are journeying inbound."

The first phase of the project, which cost $3 billion, launched in May and focused on airside and baggage systems. The second phase comes after Toronto hosted the FIFA World Cup in 2026, which brought more than 150,000 passengers through the airport.

Two Ontario companies—Norr-Dialog, a joint venture between two firms, and PCL Construction—will handle planning, architecture, engineering, and construction. The improvements will include investments in gates and passenger processing areas, as well as customs and immigration facilities, refreshed lounges, expanded in-terminal charging stations, modernized baggage processing, improved check-in procedures, and advanced security screening. Construction will be delivered in stages to minimize disruptions.

The facts

How much is Toronto Pearson's phase two modernization costing?

$1.5 billion will fund phase two of Toronto Pearson International Airport's modernization, which focuses on improving signage, spaciousness, gates, passenger processing areas, customs and immigration facilities, lounges, baggage processing, check-in procedures, and security screening at Terminals 1 and 3.

When did phase one of the airport expansion launch?

Phase one of Toronto Pearson International Airport's expansion launched in May 2026 and cost $3 billion, focusing on airside and baggage systems.

Who is managing the second phase construction?

Norr-Dialog, a joint venture between two firms, and PCL Construction are handling planning, architecture, engineering, and construction for phase two at Toronto Pearson International Airport.