The airport has invested €32.8m in increasing the size of the terminal from 81,200m² to 93,120m².
The project also involved the expansion of operation areas, public spaces and the food court at the terminal.
Faro Airport is owned and operated by ANA-Aeroportos de Portugal.
Vinci Airports, which launched the extension project, acquired ANA-Aeroportos de Portugal in September 2013.
The redevelopment is expected to expedite passenger processing times, facilitating quicker aircraft turnarounds and an increasing number of flight movements, reported Airport World.
The expanded terminal will be able to process 3,000 passengers an hour, an increase from its earlier capacity of 2,400 passengers.
Portugal's Prime Minister Nicolas Notebaert said: “It is the best example of our concession model: creating commercial conditions of the best possible traffic growth, while investing in infrastructure to prepare future growth.”
From January to June, Portuguese airports recorded a traffic growth of 20% compared to the same period last year.
During this period, Faro Airport reported an 18.5% rise in passenger numbers compared to 2016.
Image: Inauguration of the new terminal at Faro Airport. Photo: courtesy of Vinci Concessions.