To facilitate trade, connectivity, socio-economic development and
tourism in the state, the airport has been undergoing stages of expansion since the
Airports Authority of India (AAI) first drafted the plan for future development of the airport in 2007. The present state of the airport will not be able to cope with the rising traffic and demands in the future. Following the runway's extension to its current length in 2019, the airport was proposed for an upgrade to international standards. The existing terminal was proposed to be small in area, leaving space for a larger terminal to serve future requirements. In December 2023, the
Minister of Civil Aviation,
Jyotiraditya Scindia, laid the
foundation stone for the construction of the new passenger terminal building. The new terminal, to be developed by the AAI, at an estimated cost of ₹ 350 crore, will span an area of about 22,000 sq.m. It will have 28 check-in counters and four
aerobridges for handling Airbus A320 and
Boeing 737 type aircraft, and will be able to serve over 2,100 passengers during peak hours and 3 million passengers annually, which is ten times more than the current capacity of the existing terminal, thus, making it possible for the airport to achieve the target of converting into an international airport. For improving trade, like the export of flowers and aqua products from
Rajamahendravaram and adjoining regions, a cargo terminal will also be established within the area of the new terminal. An additional 17,000 sq m will also be acquired for future expansion. The new terminal, along with the cargo terminal, are expected to be completed after 2 years of construction, by December 2025. IndiGo Airlines has introduced a new daily flight service connecting Puducherry and Rajahmundry as part of its revised winter schedule, operating via Hyderabad to enhance regional connectivity across South India. The inclusion of Rajahmundry in the existing Puducherry–Hyderabad–Bengaluru route is expected to greatly benefit government officials, business travellers, and passengers heading to Yanam — a key region of the Union Territory situated approximately 73 km from Rajahmundry. == Airlines and destinations ==