Delta’s New York-JFK expansion just got significantly scaled back
The pandemic has upended the entire airline industry, and it just claimed its latest victim.
Delta's expansion at New York-JFK, which was first announced just days before the coronavirus came stateside, won't happen as originally planned.
On Thursday, the Port Authority of New York and New Jersey, which oversees the major airports in the tri-state area around New York City, approved a resolution to scale back Delta's Terminal 4 expansion.
The resolution breaks the planned expansion into two phases, one which is slated to begin in the third quarter of this year, and another which could be undertaken in the next few years, depending on the outcome of the pandemic and other factors.
The first phase of work is "60% smaller in investments," Derek Utter, the chief development officer for the Port Authority, said in Thursday's public board meeting.
The plan announced in February 2020 included 16 new narrowbody gates to be added to Concourse A in Terminal 4. Now, the current proposal includes just two new narrowbody gates and eight regional jet gates added to the end of Concourse A.
Delta's regional jet gates currently located at the end of Concourse B will be converted to narrowbody gates in the first phase of the updated plan.
Other upgrades include $100 million in renovations of the existing check-in areas in Terminal 4, as well as a modified arrivals level curb to aid congestion. The previous plan included a new and expanded terminal entrance, as well as $400 million in passenger-facing terminal improvements, such as expanded seating areas, concessions and restrooms.
The details of the exact terminal upgrades included in the first phase are still being worked out. Rick Cotton, executive director of the Port Authority, told TPG that the terminal upgrades are "25% of what we originally wanted... much of that is still being designed by Delta and JFKIAT [the terminal operator]," he said.
Notably, the original plan called for a new Delta Sky Club at JFK, though it's unclear whether one will be built under the reduced project scope.
Altogether, the new plan calls for a $1.5 billion investment, compared to $3.8 billion in the original proposal. The project will be funded by bonds issued by the terminal operator, JFK International Air Terminal LLC.
The Port Authority predicts that the project should be completed in roughly two years. Groundbreaking is slated for the third quarter of this year, with the new gates opening at the end of 2022. The remainder of the work should be complete in 2023.
As the project begins, flyers may experience disruptions when traveling through JFK and Terminal 4. Cotton told TPG that traffic plans are being developed to minimize any disruptions. "Construction inevitably has impacts on airport operations, but hopefully passengers will recognize the inconvenience — which we will be seeking to minimize — will be worth the new airport facilities," he said.
Related: LaGuardia's new terminal is a major upgrade — see for yourself
By expanding Terminal 4, Delta will consolidate all of its JFK operations there, a move that's been contemplated for over ten years, according to Utter.
Before the pandemic, the Atlanta-based carrier split flights from both Terminal 2 and Terminal 4. In April 2020, Delta shuttered Terminal 2 due to the pandemic-related reduction in air traffic. The Port Authority plans to demolish Terminal 2 to make room for an expanded Terminal 1 at some point in 2022, according to Cotton.
The remainder of the Terminal 4 upgrades will be considered in a second phase of work, including ten new narrowbody gates, $300 million in additional passenger-facing terminal renovations and roadway improvements.
Thursday's announcement didn't discuss any of the other planned improvements for JFK, which New York Gov. Andrew Cuomo first unveiled in January 2017.
Despite the pandemic, Delta is charging ahead with airport infrastructure projects elsewhere. The carrier is working on new terminals in Los Angeles (LAX) and New York LaGuardia (LGA), among others. That work is getting accelerated due to the demand downturn and drop in air traffic related to the pandemic.
In recent months, Delta, along with local authorities, inaugurated a brand-new terminal in Salt Lake City, one of its "core" hubs. The second phase of the new SLC airport could wrap up to two years early, also thanks to an accelerated timeline due to the pandemic.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.