The Airport Redevelopment Project began in March 2017 after a Government-commissioned study found the existing terminal had reached the end of its useful life and a new replacement facility would be required. As a result, a public-private partnership agreement was later entered into between the Government of Bermuda, the Government of Canada and major construction contractors, Aecon, to build a new passenger terminal building. Aecon sub-contracted both Bermudian and overseas companies to carry out the construction which has an estimated cost of $267 million. Skyport, a special purpose Bermudian company, was formed to operate and maintain the airport and successfully oversee the delivery of the construction project.

The Agreement includes the design, financing and construction of the new terminal as well as the operation and maintenance of the airport for 30 years. Overall, Skyport is expected to invest over $630 million in the airport over the 30-year term. The new terminal development, which was scheduled for completion in Summer 2020, was impacted by the Covid-19 pandemic and is now expected to be completed by the end of September, after which, many weeks of extensive testing, trials and simulations will take place. The opening date will be announced in due course.