The investment, by airport operator HIAL, will see a new standalone international arrivals hall built.
It will include Border Force and international baggage reclaim facilities alongside the main terminal to be linked by a covered walkway.
The existing airside departure lounge will be extended and reconfigured to provide seating capacity for an additional 150 passengers, including four new retail/catering units, a duty free store and coffee shop.
Kier Construction has been selected to build the new international arrivals hall and expand the existing departure lounge.
-- Advertisement --
In addition, the airports security search area is also being refurbished and expanded in a separate project, which is already underway and due for completion in March.
The new departure lounge and international arrivals hall are both due to open in May.
Graeme Bell, Inverness Airport General Manager, said the growth is due to a predicted boost in business for the airport.
"Inverness Airport has enjoyed a sustained period of growth during 2015 and our forecasts show that 2016 could well be our busiest year ever," he said.
"We are delighted that Inverness Airport is continuing to grow but acutely aware that the terminal is already congested at peak times. This investment will help ensure that passengers have more space to relax in a much larger departure lounge offering new catering and shopping facilities."
At a ground-breaking ceremony to mark the start of the constructions main phase, Business Minister Fergus Ewing said: "These are exciting times for Inverness Airport and this investment, which will make real improvements to the passenger experience, is very timely with the airport expecting its busiest year on record.
"The terminal extension will allow the airport to house more passengers, offer new retail facilities and make the security process faster – all of these measures will no doubt be welcomed by travellers."
(LM)
