British Columbia's second busiest airport, Kelowna International Airport (YLW), is set to undergo a significant transformation with the opening of a $108-million terminal building expansion. This project will enhance passenger flow, comfort, and capacity, catering to the growing demand for air travel in the Okanagan Valley and the broader B.C. Interior area.
The expansion, which will be completed in January 2026, includes a new departures lounge with direct access to multiple gates, a significantly expanded security screening checkpoint, and a state-of-the-art security system using CATSA Plus Computed Tomography (CT) X-ray equipment. This technology allows passengers to keep liquids, gels, aerosols, and large electronics in their carry-on bags, streamlining the screening process and improving the overall travel experience.
YLW will also welcome the largest commercial passenger aircraft ever to operate at the airport, a Boeing 787-900 Dreamliner operated by Air Canada, on January 24, 2026. This special flight will be a one-off event, but the expansion positions YLW to accommodate larger aircraft in the future, potentially supporting regular scheduled services by wide-body jets.
The terminal expansion also introduces new food and beverage options, including the Ellison Field Taphouse and Vintners Exchange in the departures area. Improved wayfinding, digital displays, and a contemporary interior design featuring B.C. mass timber further enhance the passenger experience.
Over the next year, construction will continue within the older terminal building, with 13,000 sq. ft. of space being renovated to add new amenities and improve passenger services. This includes a new washroom concourse, a pet relief station, and new grab-and-go food and beverage options. The entire project, including Phase 1 and Phase 2, is estimated to cost $422 million through 2033, funded by airport revenues and Airport Improvement Fees.
In 2025, construction began on the Sutton Place Hotel Kelowna, a six-storey luxury hotel with 245 guest rooms, conference spaces, and a full-service restaurant, and a seven-storey parkade with 1,000 vehicle parking stalls. These developments will be located west of the terminal expansion, replacing a surface vehicle parking lot.
Kelowna International Airport is Canada's ninth busiest airport, with 2.134 million passengers in 2024, and is projected to reach 2.25 million by 2025. The airport's 2045 Airport Master Plan predicts further growth, with passenger volumes reaching between 2.85 million and 3.3 million by 2035 and between 3.5 million and 4.4 million by 2045, up from 1.73 million in 2016.
