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Toronto Pearson Airport launches Phase 2 of its $4.5B transformation

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Toronto Pearson Airport is modernizing Terminal 1 and Terminal 3 to create a smoother airport experience for travellers.

Canada’s busiest airport is in the midst of a $4.5B makeover.

On Tuesday, Toronto Pearson International Airport launched the second phase of of its decade-long LIFT (long-term investment in facilities and terminals) transformation.

Officials say this $1.5 billion stage will see aging infrastructure upgraded and the passenger experience enhanced in terminals 1 and 3. This will be done by improving security screening, check-in areas, baggage processing, charging spaces, and lounges.

YYZ sign at Toronto Pearson Airort A YYZ sign at Toronto Pearson Airport is pictured. (Joanna Lavoie/CP24)

Pearson Airport’s first modern terminal opened back in 1964. The current Terminal 1 welcomed travelers in 2004, while Terminal 3 opened in 1991.

“(These upgrades) will elevate shopping and provide new dining and new travel experiences,” Deborah Flint, Pearson Airport’s CEO and president, said during a news conference.

“As part of this program, we’ll have improved and additional digital as well as static signage to help make the passenger journey more reliable and take out the anxiety.”

Deborah Flint, Pearson Airport Deborah Flint, Pearson Airport’s CEO and president, speaks during a July 21 news conference.

The upgrades at the Mississauga airport will be undertaken by NORR-DIALOG, a joint venture between two firms from Ontario, along with PCL Construction, a global firm established and headquartered in Canada.

“We’re trying to focus in on some of the specifics, but I think some obvious things we’re going to look to make the space brighter, more spacious, organized in a way that’s intuitive,” said Jim Anderson, a partner at DIALOG.

Phase Two in early planning stages

It is still unclear, however, when exactly this stage of construction will start or how long it will take to complete, as the project is still in the very early planning stages.

Mark Boone, NORR’s vice-president of transportation, assured that the work would be undertaken in a “series of manageable chunks,” which he said would be “organized in such a way to minimize the pain that passengers are going to be experiencing.”

The Air Canada check-in area inside Terminal 1 of Toronto Pearson International Airport is pictured in Mississauga, Ont., on Wednesday, Aug. 13, 2025. THE CANADIAN PRESS/Arlyn McAdorey The Air Canada check-in area inside Terminal 1 of Toronto Pearson International Airport is pictured in Mississauga, Ont., on Wednesday, Aug. 13, 2025. THE CANADIAN PRESS/Arlyn McAdorey

Phase One broke ground in May

Phase One of the airport’s revitalization broke ground back in May and has a $3 billion price tag. It is focused on upgrading airfield technology and the baggage network.

Down the line, Phase Three will look at creating more terminal space.

Overall, these planned improvements at Toronto Pearson Airport are being done to accommodate a substantial increase in passengers. It predicts 65 million annual passengers will pass through by the early 2030s, which is roughly 30,000 more each day.