Citing delays, top airport officials said that they are not prepared to make any further investment in the project.
Instead of a new terminal, LBA plans to further extend the existing terminal, for which it received approval from the Leeds City Council in 2019.
In January 2020, LBA decided to submit revised plans for its new terminal to serve an increasing passenger traffic.
LBA CEO Vincent Hodder said: “It is with regret that we have made the decision to withdraw LBA’s application for the development of a new replacement terminal.
“As the travel and aviation industry continues to recover from the impacts of the pandemic, LBA needs to be able to respond to rapidly increasing demand within the next few years.
“I would like to thank everyone who has supported us in the planning process, from the general public to the business community and councils across Yorkshire. Whilst this is a setback for our airport and region, we remain committed to investing in LBA to be an outstanding, decarbonised, modern airport for the future.”
Last December, LBA unveiled a road map to achieve the carbon neutrality target by the end of this decade.
Under this initiative, the airport aimed to decarbonise terminal operations and convert vehicles used at the airport to low or zero-emission versions.