Toronto island airport expansion will cost up to $5 billion, port authority says

Ontario Premier Doug Ford shakes hands with Toronto Port Authority President and CEO RJ Steenstra at an event at Billy Bishop Toronto City Airport on Monday March 23, 2026. THE CANADIAN PRESS/Frank Gunn

The Toronto Port Authority says the proposed island airport expansion will cost up to $5 billion.

Port authority CEO RJ Steenstra told a committee at Queen’s Park this week that the proposed expansion of Billy Bishop Toronto City Airport will cost between $4 and $5 billion over 25 years.

“This is not an overnight investment,” Steenstra said. “This will take time to ensure that we’re meeting the needs. It’s a phased-in approach.”

There will be little, if any, public money involved, Steenstra said, though he said the federal government has yet to indicate whether it will pony up taxpayer dollars.

The port authority owns and operates the island airport, though the airport’s passenger terminal is owned by Nieuport Aviation.

Commercial airports in Canada are self-funded, paid by passengers and airlines, under the Aeronautics Act. Billy Bishop will be no different with its expansion.

“Billy Bishop airport needs to prepare for the future growth in the province’s population and of our growing economy,” Steenstra said.

“If we don’t plan ahead, a lack of airport capacity could result in higher fares per passengers, declining regional connectivity including access to remote northern communities and a reduction in tourism and business activity.”

Premier Doug Ford’s government held one day of committee hearings on Bill 110, which was introduced in late April.

If passed, the bill would allow the province to take Toronto’s spot in a tripartite agreement that governs the land and currently involves the city, the federal government and the Toronto Port Authority, which is a federal agency.

• READ MORE: Toronto island airport expansion would lead to severe traffic, committee hears

Steenstra has an ally in the province and Ford, who wants to expand the airport to allow jets to land and take off.

Ford and provincial Transportation Minister Prabmeet Sarkaria have said the federal government is on board with the expansion plans.

The federal government and members of Parliament representing Toronto ridings have been noncommittal when asked about those plans, however.

The Prime Minister’s Office referred questions Wednesday to federal Transportation Minister Steven MacKinnon’s office.

“Any future decision concerning the airport’s operating environment, including the types of aircraft permitted, will require the agreement of all signatories to the agreement,” said Philippe-Alexandre Langlois, MacKinnon’s spokesman.

“Such decisions would also involve robust consultations with key stakeholders, affected communities, and Indigenous groups, while taking into account economic benefits, transportation needs, and environmental considerations.”

The Queen’s Park committee heard during questioning from New Democrat finance critic Jessica Bell that the port authority has not yet developed a business plan nor has it completed any health or environmental studies on the possible effects of the expansion.

“Our plan will be informed by broad public consultation and a robust environmental assessment,” he said.

Steenstra also said the port authority has shared its proposed plans with both the federal and provincial governments, but has so far not yet shared those plans with the City of Toronto.

“The city has not seen them, but meetings have been scheduled,” Steenstra said.

Toronto Mayor Olivia Chow appeared unimpressed with the proposal and how it is playing out.

“I’ve always said that the City of Toronto, representing 3.2 million people, should be at the table, should be able to see the plan, should be able see the business plan and all the costs, etc.,” she said.

“So, I don’t see a clear plan at this point other than a very hefty price tag.”

Bell just wants the upper levels of government to be transparent.

“It is clear that the (Progressive) Conservative government is meeting with the federal government behind closed doors to come up with this plan in secret and the rest of us are being left in the dark, including the City of Toronto,” she said in an interview.

“They’re proceeding as if the plan is a done deal — it’s actually quite surprising.”

She also questioned the official line that Steenstra, Ford and Sarkaria have cited in recent weeks: that an expanded island airport would generate $8.5 billion in annual economic output.

“There’s no business case, which he admitted to, and there’s nothing backing up that magical $8.5 billion number,” Bell said.

“And the range of $4 to $5 billion to expand it is an astronomical amount of money and I don’t see how this makes economic sense without a massive government handout.”

The bill is set to undergo a clause-by-clause reading Thursday, where the government can make changes. Then it’s back to the house for a third and final reading.

This report by The Canadian Press was first published May 20, 2026.

This report by The Canadian Press was first published May 20, 2026.

Liam Casey, The Canadian Press