TAV Georgia launches $150 million Tbilisi airport expansion to anchor Caucasus transit growth

TAV Georgia has commenced a $150 million expansion of Tbilisi International Airport to double its annual capacity to 10 million passengers by 2028. The project addresses surging traffic, which neared design limits in 2025, and aims to substantially boost aviation revenues and regional connectivity.

An official government announcement confirmed that infrastructure operator TAV Georgia has broken ground on a $150 million modernization project at Tbilisi International Airport. Scheduled for completion between 2026 and 2028, the initiative will scale the hub's annual passenger capacity from 5 million to 10 million. The upgrade encompasses doubling passenger boarding bridges to 10, expanding terminal footprints, and integrating advanced operational technologies. TAV Georgia, a subsidiary of TAV Airports and part of French aviation group Groupe ADP, has managed major Georgian aviation gateways for over two decades.

This capital deployment is a direct response to acute capacity constraints, as the airport handled 5.4 million passengers in 2025, outstripping its original design threshold. By expanding infrastructure ahead of demand curves, the project ensures the hub can accommodate accelerating Black Sea and Caucasus traffic without operational bottlenecks.

For the broader aviation and tourism sectors, the expansion alters regional dynamics. An associated funding program for airline marketing will actively incentivize international carriers to establish new routes, enhancing Georgia's competitive positioning against alternative regional hubs. Furthermore, the state-backed Georgian Airports Association has already secured a $25 million upfront payment under the terms of the development agreement.

For institutional investors and logistics enterprises, the expansion signals long-term macroeconomic upside. Official projections estimate a threefold increase in annual airport revenues upon completion, generating lucrative opportunities in duty-free retail, hospitality, and secondary commercial real estate. Enhanced air connectivity will also streamline supply chains, making the region increasingly attractive for foreign direct investment and transit logistics.