Perth Airport has all but committed to building another runway to handle record growth that delivered a thumping $267 million profit in the past financial year.
At its annual stakeholder event, Perth Airport chief executive Brad Geatches said a business case for a runway would be presented to the board next year.
"We have determined that we need a third runway by the end of the decade to cater for the increasing demand," he said.
In his review to shareholders, Perth Airport chairman David Crawford said "there was an emerging consensus among aviation industry stakeholders that investment in the third runway should be brought forward".
Mr Geatches put the cost of the runway at $400 million - well down from original estimates of $900 million touted two years ago.
Perth Airport's cross-runways are at capacity almost 70 per cent of the time from Tuesday to Thursday from 5am to 9pm.
Delays for landing are extensive, particularly during wet weather. The congestion requires many planes to be held on the ground at the originating airport, with ground delays of at least 30 minutes not uncommon.
At the stakeholder event on Thursday night, Mr Crawford said the airport's $750 million investment in terminal infrastructure was fully committed, with four major terminal projects completed or under way.
T2 opened this year and the first stage of the upgrade of T1 - the international terminal - would open this month.
The Virgin Australia domestic pier will open about August.
Last year, the airport recorded a 7.8 per cent jump in international passengers and an 8.3 per cent rise in domestic passengers.
The growth has outpaced all other Australian airports for the past seven years.
These numbers, along with significant increases in cargo and charter operations, drove a 30 per cent increase in aeronautical charges to $162 million.