Toronto Pearson Moves Ahead with $1.5B Terminal Overhaul

Image: Toronto Pearson (YYZ) Terminal 1 (Photo Credit: TravelPulse Canada/Natasha Lair-McKenty)
Image: Toronto Pearson (YYZ) Terminal 1 (Photo Credit: TravelPulse Canada/Natasha Lair-McKenty)
Natasha Lair
by Natasha Lair
Last updated: 7:30 AM ET, Wed July 22, 2026

Toronto Pearson International Airport (YYZ) announced a CAD$1.5-billion contract to launch its Terminal 1 and Terminal 3 Revitalization Program.

The project will focus on upgrading aging infrastructure while improving the passenger experience across both terminals.

Planned improvements include expanded terminal spaces, modernized check-in areas, refreshed lounges, enhanced baggage processing, additional charging stations, upgraded customs and immigration facilities, and advanced security screening technology.

According to the airport, construction will be completed in phases to allow Toronto Pearson to continue operating while minimizing disruptions for travellers and airlines.

RELATED: Pearson Breaks Ground on Multi-Billion Dollar Project

“Toronto Pearson, one of Canada’s most important national infrastructure assets, serves as a vital gateway connecting people, products, and businesses to the world,” said Toronto Pearson President and CEO Deborah Flint.

“This investment marks another significant milestone in Pearson LIFT and demonstrates our momentum in modernizing Pearson that will meet customer expectations. We’re elevating the travel experience so Toronto Pearson can continue its part in fueling Canada’s economy by welcoming more passenger growth and offering better customer experience.”

Toronto airport, toronto pearson international airport, yyz, canadian airports

Toronto Pearson International Airport (YYZ) is Canada's busiest airport. (Photo Credit: oasisamuel / AdobeStock)

The contract was awarded to NORR-DIALOG, a joint venture between Ontario-based firms NORR and DIALOG, along with PCL Construction, a Canadian-headquartered construction company.

The terminal revitalization is the second major project announced under Pearson LIFT, the airport's long-term infrastructure renewal program. In May, Toronto Pearson broke ground on a separate $3-billion project focused on airside infrastructure and baggage systems.

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