Hawke's Bay Airport has reached a major milestone with 750,000 annual passengers for the year ended June 2019.

Hawke's Bay Airport chief executive Stuart Ainslie says passenger numbers are up 8 per cent on 2018 and have grown by more than 100,000 passengers over the past two years.

It comes less than 12 months after the previous record for 715,000 passengers was recorded in November last year.

"There has been a significant increase in passengers, three-quarters of a million passengers is a milestone achievement and demonstrates the growing popularity of the region for tourists and business commuters.

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"Although our airline partners aren't forecasting similar levels of growth going forward, we are still anticipating growth of around 5-6 per cent over the next couple of years.

The fastest growing route has been between Napier and Christchurch, which grew by 11 per cent to over 130,000 passengers.

Hawke's Bay Airport Limited revised its forecasted passenger numbers upwards last year and this prediction came in on target.

Ainslie said the terminal expansion project is progressing well, with the new Stage 2 check-in and departures area set to open in mid-October this year.

The three-stage redevelopment is expected to be fully completed by the end of 2020.

"We did have a slight set back with the liquidation of the construction firm but we had a back-up plan which we implemented quickly and that's ensured we aren't too far behind at all."

Ainslie said as well as progressing the infrastructure project of a redeveloped terminal, management is also progressing well with the airport masterplan, with public engagement starting in September.

"We are looking forward to engaging with the community and listening to their views on the future development of their airport. There is a strong emphasis on sustainability and the airport being better connected to the surrounding environment and the people of the region."

Other significant projects expected to be completed by the end of the year include a new internal road layout and implementation of new car parking technology.

The airport is co-owned by the Crown (50 per cent), Napier City Council (26 per cent) and Hastings District Council (24 per cent).