A 100-strong site team will be working on the job which is due to be completed by next Summer.
John Parkin, Leeds Bradford International Airport’s Chief Executive, said: “I am delighted to announce the next stage of our planned investment to transform the passenger terminal at Leeds Bradford Airport.
“It marks an important milestone in the development of Yorkshire’s airport and our desire to provide the very best facilities for our rapidly growing numbers of customers and airlines.
“The broad economic conditions are challenging, but we are the UK’s fastest growing regional airport and with the strong support of our shareholders, Bridgepoint, we are confident now is the time to invest in our future.
“The investment and developments we have announced demonstrate our determination to succeed, to continue to grow and to provide the region with the airport it wants and deserves”.
Work will involve a 65% increase in airside space including extended lounges, new food and retail outlets and covered walkways to aircraft stands.