Melbourne airport's revenue increased by 9% to A$642 million ($575 million) in its 2012/13 fiscal year to 30 June, with capital expenditure in airport upgrades rising by 21% to A$249 million.
Details of the privately-held airport's financial performance during the year were disclosed by airport chief executive Chris Woodruff in an annual stakeholder update.
He adds that Melbourne's 16% growth in freight exports means the airport has overtaken Sydney.
Capital expenditure went into a number of areas, including airside and landside projects, new apron areas, and expansion of the airport's freight area.
He added that work on the airport's new domestic terminal, which received government approval in April, has commenced.
The 20,000m² (215,000ft²) terminal will have a capacity of 10 million passengers per annum and feature 17 new aircraft parking positions. The airport says that it also plans to expand the facility to double its capacity in future stages.
Melbourne airport says that the project is part of a $10 billion investment programme over the next 20 years that is aimed at making it the principal aviation gateway in Australia.
Melbourne airport recorded close to 30 million in total passenger numbers for the year ending 30 June, up by 6% compared with the previous year.
International passenger numbers rose by 5% to 7.1 million over the same period.
Hong Kong, Taiwan, China, Vietnam and India were the main drivers of international passenger growth, all recording increases of more than 10% compared with figures for the previous year.
Domestic passenger numbers increased by 6% to 22.7 million for the year.