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Say goodbye to lost luggage: Australian airport rolling out game-changing bag tracking

Plus, better links between airport terminals are on the way elsewhere.

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An airport check in counter and (inset) Melbourne Airport's new baggage handling system. Picture by Unsplash and supplied
An airport check in counter and (inset) Melbourne Airport's new baggage handling system. Picture by Unsplash and supplied
Sarah Falson
Updated November 18, 2025, first published November 17, 2025

Fewer bags will be lost at Melbourne Airport when a new high-tech baggage handling system rolls out.

The new baggage system will double the capacity of the existing system at the T2 international terminal and allow airlines to track bags in real time from the moment they are checked-in.

The system will replace the current outbound international baggage system, and will process more than 4000 bags per hour compared to 1800 today.

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Melbourne Airport Chief of Aviation Jim Parashos said the infrastructure - coming online in March - will lead to fewer lost bags, "with airlines able to track every bag in real-time from check-in to the aircraft, giving peace of mind to passengers while supporting on time performance."

It will also allow passengers to check in earlier for their flights - up to 18 hours before departure.

"Having an automated bag store will allow us to let passengers check-in much earlier for their flights and in the future will enable true anytime check-in, which is exciting for both airlines and travellers," Mr Parashos said.

How does it work?

When passengers check their bags in at the check-in desk, each bag will be assigned an electronic tag for tracking. It will then be placed onto a tote tray and this will move onto a conveyor to be scanned for security.

Bags will then move to a storage area that can hold up to 1400 bags. Bags that are checked in early will be stored in flight rows to wait for their flight. When the flight is ready for baggage, bags will automatically be moved through the conveyor for loading.

A Melbourne Airport spokesperson told Explore that while misplaced bags make it to their destination eventually under the current system, tracking down a bag relies on ground handlers physically inspecting the bags for tags or information.

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"At present bags are tracked using the baggage labels attached to them. When these labels are incorrectly attached or fall off bags can be misdirected in the system. These misdirected bags can often lead to congestion and extensive manual handling to get them where they need to go," the spokesperson said.

Under the new system, each bag is paired electronically to a tote tray using RFID technology. The spokesperson said this would mean "ground handlers and airlines will know where each bag is in the system at all times, reducing the time bags are 'lost' in the system".

The new infrastructure will not change boarding times or baggage delivery at the destination, the spokesperson said.

Record passengers

Melbourne Airport recorded 1,032,448 international travellers for the month of October - its busiest October ever.

Melbourne Airport's new baggage system will allow airlines to track bags throughout the airport. Picture by Melbourne Airport
Melbourne Airport's new baggage system will allow airlines to track bags throughout the airport. Picture by Melbourne Airport

The airport has four new airlines touching down in December: Virgin Australia to Doha, operated by Qatar Airways on December 1; Delta Airlines on December 5, Hong Kong Airlines on December 13 and Shenzhen Airlines on December 23.

Sydney upgrades

Over at Sydney Airport, a $6 billion upgrade over the next five years will include a new link between T2 and T3 domestic terminals to improve efficiency for airlines and passengers.

Some international services will be brought to the current domestic precinct, and new terminal space along with 12 new swing gates - which can switch between domestic and international operation as needed - will be developed.

Sydney Airport expects 72 million passengers annually by 2045.

Sarah Falson
Words bySarah Falson
Sarah is ACM’s travel producer. She believes regional travel is just as fun (if not better) than staying in the big cities and loves any travel experience to do with nature, animals and food!.

My all-time favourite destination is ... Cornwall. From the giant seagulls to the blustery beaches, Cornish pasties and fishing villages, it stirs something romantic and seafaring in me.

Next on my bucket list is … Mongolia. I want to go somewhere really unique that feels totally foreign and challenges my way of life.

My top travel tip is … Don’t plan too much. Walk the streets and let it happen. And make sure you check out what’s within a few blocks of your hotel - sometimes the best local food is found that way.