Passenger numbers at Budapest Airport (BA) rose 15% year on year to 9.07mn in the first half, which roughly matches the full-year total recorded a decade ago. Last month, the airport hub registered a record 1.7mn passengers, up 9% y/y.

The most popular destinations during the month were London, Istanbul and Milan, BA said in a statement. The increase in traffic was driven by Hungary’s growing popularity as a tourist destination, rising travel demand among Hungarians, and the broadest summer flight schedule in the airport’s history.

The state completed the repurchase of the airport operator last June, teaming up with France's Vinci Airports, citing strategic interest. The state paid €2.4bn for 80% of the stakes and assumed  €1.2bn of outstanding company debt. The new owners unveiled ambitious growth plans, including constructing Terminal 3 by 2032 to meet rising traffic, set to increase to 25mn by 2040 from last year’s record 17.6mn.

Cargo traffic also hit a new high in June with 35,000 tonnes passing through Budapest, marking a 40% annual increase. First-half cargo volume reached 200,000 tonnes, up 50% from the base period, surpassing the full year figure in 2023 and accounting for 66% of the total volume in 2024.

The government is pressing ahead with plans to build a new cargo airport, with 5-6 possible options under consideration to relieve pressure on BA. Hungary positions itself as the leading logistics hub in Central and Eastern Europe, a bridge between East and West. Strategic ties to China and the surge in e-commerce have also warranted expanding these capacities.

As most cargo comes from Asia, including 43% from China, the project is expected to draw the interest of investors from China, the Middle East, Kazakhstan, or Azerbaijan, Economy Minister Marton Nagy said a month ago, unveiling the project. Air freight capacity at Budapest Airport could soon reach the 400,000-450,000 tonne capacity. The new facility would operate around the clock, and possibly be located near transport hubs, but no further details were released.

The project will be carried out in a concession model, primarily due to budgetary constraints from a €0.4-1bn investment.

The government also approved the construction of a direct rapid rail link between the city centre and Liszt Ferenc International Airport, located 16km east of Budapest, to meet the rising passenger traffic from a €1bn investment. The government is turning to the private sector to fund the projects under a long-term concession agreement.