The airport project has been paused due to growing fears that the pandemic will hit air travel for years to come.
Ground was broken on a £30m extension to the terminal earlier this year, but firms, Atkins, Mace and Careys who are all working on the project have stopped work.
The airport says that all non-essential work has currently been delayed or deferred, including the terminal extension.
It will review the capital investment plan once we there is clearer picture of what the recovery looks like for the industry.
“Our focus at this time is to maintain a safe and secure airport, capable of serving the return of traffic at the earliest possible time,” it said.
The airport revealed the expansion plan in late 2018 with the aim of increasing passenger numbers by 40 per cent over the next 15 years, helped by an increase in demand from HS2.
The plans also include a larger departures lounge, a new baggage sorting area, improved arrivals and additional aircraft stands.
Mace said: “We are disappointed that Birmingham Airport has been forced to make the difficult decision to delay the expansion of its terminal, but it is clear it faced no choice given the current circumstances.
“Mace was very proud to have been chosen to the deliver this project on their behalf – but the reality is that the aviation sector is facing huge challenges. We will do everything we can to support our client through this tough period, and we look forward to working with them in the future.”
A temporary mortuary has been set up at Birmingham Airport to receive bodies from across the region, it was revealed in April. Bodies of people who have died from Covid-19 will be stored there until funeral arrangements can be made.