Planners at Leeds City Council approved the scheme last night despite objections from environmentalists.
Construction of a new three-storey terminal building is now expected to start this year creating 850 construction jobs.
A Leeds City Council spokesperson said: “The council recognises that the Leeds Bradford Airport planning application has been the subject of much public debate and, from the moment it was first submitted, full and proper attention has been paid to the evidence and arguments put forward by supporters and opponents alike.
“There were a large number of matters for plans panel members to consider during this process, including the council’s declaration of a climate emergency and the issue of increasing carbon emissions from flights.
“Current Government policy points to these emissions being something that should be primarily tackled at a national level – and addressed through international agreements and protocols – rather than by suppressing growth at individual airports in a way that could simply export passengers to other nearby airports at a higher financial cost to them and increase surface transport emissions.
“In addition, the airport’s plans showed that the proposed new terminal would replace the outdated and inefficient existing terminal and be built to a higher standard of environmental performance that would also provide an improved ‘gateway’ to Leeds, with an associated creation of new jobs.
“The application has been approved by the city plans panel today taking into consideration all of these issues, subject to a change and tightening up of certain conditions being discussed and agreed with the applicant, a section 106 agreement and referral to the Secretary of State for Housing, Communities and Local Government.
“The council is keen to continue working closely with local residents, businesses, community associations and the airport as the development begins to take shape.”