Grounded: JFK’s $15B overhaul could be delayed years

Passenger volume at the airport is down by 85%, and may not recover until 2023

New York /
Aug.August 10, 2020 12:00 PM
JFK Airport’s $15 billion planned overhaul could be delayed for years, as passenger volume continues to plummet. (Rendering via Governor Cuomo's office)

JFK Airport’s $15 billion planned overhaul could be delayed for years, as passenger volume continues to plummet. (Rendering via Governor Cuomo’s office)

The timeline for the massive overhaul of John F. Kennedy International Airport will likely be pushed back years because of plummeting passenger demand.

The project, whose cost has soared to an estimated $15 billion, aims to unify the terminal layout, modernize operations and provide added gates to accommodate an expected one million more passengers a year, according to the Wall Street Journal.

But the pandemic has changed all that, and the Port Authority of New York and New Jersey may now have to push back the 2025 projected completion date, the Journal reported.

Passenger volume is down about 85 percent, and officials warn that passenger numbers might not match last year’s level of nearly 62 million passengers until 2023, the report noted.

The International Air Transport Association recently estimated that airline traffic won’t return to last year’s level until 2024, according to Bloomberg.

The Port Authority had planned to replace JFK’s six terminals, each managed by separate airlines or terminal operators, with four larger buildings. The agency had pledged several billion dollars for the project, and private investors and airlines were supposed to foot the rest of the bill.

The redevelopment plan may be forced to scale back if the Port Authority and airlines don’t receive the $3 billion bailout from the federal government, Gov. Andrew Cuomo said recently. [WSJ] — Akiko Matsuda


Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)
Owners of some residential properties can’t hide behind LLCs anymore
Owners of some residential properties can’t hide behind LLCs anymore
Governor Andrew Cuomo and 538 Johnson Avenue in Brooklyn (Credit: Google Maps and Getty Images)
Landlords take another hit: Cuomo signs expanded Loft Law
Landlords take another hit: Cuomo signs expanded Loft Law
Governor Andrew Cuomo (Credit: Getty Images)
Cuomo wants to exempt NYC from prevailing wage bill
Cuomo wants to exempt NYC from prevailing wage bill
(iStock)
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Canada’s biggest city has just 3,200 homes for sale, an all-time low
Douglas Elliman sends NYC employees home as Omicron surges
Douglas Elliman sends NYC employees home as Omicron surges
Douglas Elliman sends NYC employees home as Omicron surges
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
Aloha: Buyers can’t snap up Hawaii’s luxury homes fast enough
From left: Gov. Kathy Hochul, Mayor Bill de Blasio, Public Advocate Jumaane Williams, and Rep. Lee Zeldin
Here’s where the top contenders for NY governor stand on real estate
Here’s where the top contenders for NY governor stand on real estate
John Paulson with Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort (Condado Vanderbilt, Marriott)
Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds
Billionaire John Paulson wants to sell two Puerto Rico hotels as market rebounds
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...