Porter Airlines will more than double its passenger volume once a $45 million terminal expansion project is completed next year, an addition that will allow the ambitious young airline to accommodate more than 20 aircraft at Toronto's tiny island airport.

Robert Deluce, chief executive of Porter, said yesterday the first phase of the expansion, paid for by Porter, will be ready by November.

The full facility will include 10 aircraft gates with bridges, United States and Canadian customs facilities and two passenger lounges to accommodate domestic and transborder passengers.

Porter, which launched in 2006 and flies to short-haul destinations in Canada and the U.S., plans to have 18 Bombardier-built turboprop planes in operation by the end of the year, up from the current eight.

"When the second phase of this terminal is built, upward of one million passengers will be using this airport each year," said Deluce, adding that roughly 500,000 passengers are now using the facility annually.

Deluce made the comments at a formal launch yesterday for the new terminal facilities at the City Centre Airport.

Also in attendance were federal Finance Minister Jim Flaherty and John Baird, the federal minister of transport, infrastructure and communities.

"Companies like Porter Airlines are helping to further stimulate the economy and help it move forward," said Flaherty, who added that Ottawa is not contributing any money to Porter's terminal expansion.

The new additions to Porter's terminal are already under construction, having been announced several months ago. Once completed, the expanded facility will dwarf the airport's original wood-framed terminal building, built in 1939.

The new terminal will include a mix of retail, food, duty free and car rental services.

Deluce estimated that Porter will employ about 1,000 staff by next year, up from the current 600.

The airline flies to Ottawa, Montreal, Halifax and Quebec City in Canada, with seasonal service to Mont Tremblant.

Porter recently announced that it will begin flying from Toronto to Thunder Bay in June.

Porter also flies to New York and Chicago and is planning to add more American destinations this year.

The airline's original business plan ultimately called for a network of 17 destinations in the U.S. and Canada.

The continued expansion, which comes as the broader airline industry grapples with an economic slowdown, is good news for passengers who value the island airport's proximity to downtown Toronto.

But not everyone is thrilled with the changes taking place on the island.

About 30 protesters marched back and forth yesterday at the entrance to the airport's ferry terminal on the mainland.

"It's bad for Toronto and it's bad for the waterfront," said Brian Iler, chair of CommunityAIR, an organization opposed to the expansion of the airport's operations.

"The jobs don't go anywhere if Porter goes to Pearson (International Airport), where it belongs."