MIA accelerates investment drive with solar farm, terminal expansion, and SkyParks 2

Malta International Airport (MIA) is pressing ahead with a multi-year investment programme aimed at strengthening operational efficiency, enhancing passenger experience, and positioning the airport as a key enabler of higher value tourism, while maintaining financial stability for shareholders.

Central to this strategy is the completion of a new on-site solar farm, which MIA CEO Alan Borg describes as “an important step in our journey towards achieving net zero by 2050”. The facility is expected to generate approximately 5.1 million units of clean energy annually, all of which will be consumed directly by the airport. Borg characterised the project as a major milestone, both in terms of sustainability and long-term cost efficiency.

The solar farm forms part of a broader sustainability and energy-efficiency drive. MIA has invested around €11 million in upgrading its heating, ventilation, and air-conditioning systems to the latest, most efficient technologies, while the transition to LED lighting on the airfield began during the Covid-19 period. These initiatives have helped reduce the airport’s direct emissions, alongside the use of high-quality carbon credits to offset residual emissions where mitigation options are still being explored.

Collectively, these measures have enabled MIA to reach Level 3+ in the Airport Carbon Accreditation programme, granting the airport neutrality status. Borg described this achievement as an external validation of the company’s sustainability progress and an important signal to stakeholders that MIA’s environmental commitments are being translated into measurable results.

Alongside sustainability investments, MIA is advancing one of the most significant capital expenditure programmes in its history. A key component is the eastward expansion of the terminal building, announced in 2025 and expected to open in 2028. The project will extend the terminal by 6,000 square metres and represents the largest single investment within MIA’s €345 million multi-year investment plan.

Borg acknowledged the operational complexity of undertaking such a project while maintaining full airport operations. During peak summer months, the airport handles an average of 32,000 passengers per day, dropping to around 22,000 during winter. Current works are focused on the logistical challenge of integrating the new structure with the existing terminal without disrupting daily operations.

Crucially, the terminal expansion is not designed to significantly increase passenger numbers. Borg stressed that MIA has no ambition to become a 20-million-passenger airport. Instead, the objective is to alleviate congestion and improve service quality for existing traffic levels. The current Departures area, he noted, is constrained and prone to overcrowding during peak periods.

Once completed, the extension will effectively double the size of the Departures area, significantly increasing circulation space and seating capacity. The number of check-in desks will almost double, rising from 35 to 67, while five additional gates and an extra crew gate will be added. The expansion will serve Schengen departures and will also incorporate additional retail and food and beverage outlets.

While the commercial offering is still being shaped with the help of consultants, Borg said there is a strong emphasis on reinforcing the airport’s Maltese identity. Nevertheless, he underlined that the primary value of the project lies in improved comfort, space, and overall passenger experience, rather than retail expansion alone.

Parallel to the terminal works, MIA is investing in complementary infrastructure and technology upgrades. In recent years, the airport expanded Apron 8, adding eight aircraft stands and unlocking additional airside capacity. More recently, MIA introduced C3 security scanners, allowing passengers to keep liquids and electronics in their bags and easing the 100ml liquid restriction.

From an operational standpoint, the company is currently prioritising backend systems rather than passenger-facing automation. MIA has invested around €1 million in upgrading its Airport Management System, described by Borg as the “heart of the airport”, as well as commissioning an upgrade to the baggage tracking system. While biometric processing and automated bag drops remain part of MIA’s long-term vision, Borg said these investments have been deliberately deferred until after the new departures and check-in areas come online.

Another major pillar of MIA’s growth strategy is property development, most notably the SkyParks 2 project. The development will include three blocks, two of which will primarily offer office space, expanding the amenities of the existing SkyParks Business Centre. The third block will house a four-star business hotel.

Borg was keen to distinguish the hotel from a traditional airport hotel concept, describing it instead as a business hotel serving the growing commercial hub around the airport. Once SkyParks and SkyParks 2 are fully operational, MIA expects around 3,000 people to be working on site. In this context, the addition of a nearby hotel is seen as a logical support facility for business travellers and corporate users. Final negotiations are ongoing, with brand visuals expected to be unveiled in the coming weeks. The entire SkyParks 2 project is scheduled for completion by the end of 2027.

Beyond these projects, MIA’s master plan includes space for a potential additional business centre, though Borg indicated that the company’s immediate focus remains firmly on delivering the terminal expansion and SkyParks 2 before committing to further large-scale developments.

From a financial perspective, Borg emphasised the importance of balancing reinvestment with shareholder returns. He said MIA aims to continue investing in its workforce and infrastructure while maintaining its track record as a stable dividend payer. “I can promise shareholders stability,” Borg said, noting that the company’s dividend policy is not expected to change in the short-term.

MIA currently employs 535 people, a figure that is expected to rise gradually as operations and developments expand. Borg also highlighted the airport’s resilience in the face of geopolitical uncertainty, noting that despite disruptions in certain markets, Malta’s tourism sector has continued to deliver record passenger numbers in recent years. MIA’s guidance points to growth of around 5% over the previous year, suggesting confidence in the near-term outlook.

Route development remains a strategic priority, particularly in the context of Malta’s shift towards higher value tourism. A major milestone will be reached this year with the launch of Delta Air Lines’ direct service between Malta and New York’s JFK Airport, operating between June and October. Borg described the route as strategically significant, given the high average spend associated with US tourists.

MIA’s immediate focus is on ensuring the commercial success of this operation, in close coordination with the Malta Tourism Authority. Borg said that a strong performance could lead to an extension of the operating season and potentially attract additional North American routes, either from Delta or other carriers.

Within Europe, Malta is already connected to 111 destinations, and MIA’s strategy is increasingly focused on increasing flight frequencies rather than adding new routes. Particular attention is being given to shoulder and winter months, with the Scandinavian market identified as a key growth area. Passenger numbers from Scandinavia grew by 20% between 2024 and 2025, reflecting travel patterns that align well with Malta’s off-peak objectives.

MIA is also working to rebuild traffic from Germany, despite broader challenges affecting travel within the German market. Borg said engagement with airline partners remains ongoing to recover and stabilise connectivity from that region.

Looking ahead, Borg does not expect passenger growth to continue at the same pace seen over the past five years, but remains confident in the airport’s long-term prospects. He reiterated that MIA’s role is not to drive volume for its own sake, but to ensure Malta is connected to markets capable of delivering sustainable, high-value tourism.

In this context, the airport’s investments in infrastructure, sustainability, technology, and property development are designed to support quality, resilience, and long-term competitiveness. As Borg put it, the focus is on creating the right conditions for Malta’s tourism and business sectors to thrive, rather than simply chasing headline passenger numbers.