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New York Gov. Andrew Cuomo this week announces the Port Authority of New York and New Jersey (PANYNJ) has reached a tentative agreement on a $3.8 billion expansion of John F. Kennedy International Airport (JFK) Terminal 4.

The Terminal 4 project, which still needs the formal approval of the PANYNJ board of commissioners, would add more than 500,000 square feet and 16 domestic narrow-body gates, while expanding and renovating the arrivals and departures hall to improve the ticketing areas, security check points, baggage claim and arrivals areas.

Delta Air Lines currently operates out of both Terminal 4 and Terminal 2, and this expansion will consolidate all of the carrier’s JFK operations into Terminal 4.

“The Terminal 4 expansion will be another milestone in the transformation of JFK Airport, with upgrades that will give passengers the world-class experience they expect when flying into New York,” Governor Cuomo says in a statement. “When completed, our $13 billion project to modernize JFK will create a more unified airport and solidify New York’s position as the premier entry point to our country.”

The 16-gate Terminal 4 expansion will replace the 11 gates currently used by Delta at Terminal 2, which was built in 1962 and allow for the demolition of that 58-year-old terminal. The project will include expanded seating areas and concessions, modern wayfinding, brand-new restrooms and a new Delta Sky Club. Roadway access and frontage adjacent to Terminal 4 will also be reconfigured as part of this project, improving vehicle access for customers.

“The expansion of Terminal 4 represents the next evolution of one of the world’s most modern and efficient air terminals,” says Roel Huinink, president and CEO of JFK International Air Terminal (JFKIAT), operators of Terminal 4. “T4 accounts for one-third of traffic for JFK, and by investing in this expansion, we will be able to continue driving innovation within the terminal, increase its capacity, and bring our best-in-class customer experience to the next level.”

The Terminal 4 project is expected to be financed by JFKIAT. Earlier this month, Delta’s Board of Directors authorized Delta’s management team to negotiate and enter into definitive agreements.

“This project will advance the agency’s mission to keep the region moving and its commitment to provide a best-in-class experience to all travelers and visitors to the metropolitan region,” says Kevin O’Toole, Chairman of the Board of Commissioners of PANYNJ.