Delta will begin work on a $4 billion, 37-gate terminal at LaGuardia later this summer.

The announcement comes after the Port Authority of New York and New Jersey gave final approval Thursday evening to a lease agreement with Delta. The new terminal will replace LaGuardia's existing terminals C and D. It is scheduled for completion in 2026.

Delta will provide $3.4 for the project and will assume responsibility for cost overruns. The Port Authority has committed $600 million.

The project will accompany the $4 billion, five-year renovation of LaGuardia’s main terminal, Terminal B, which Port Authority contractor LaGuardia Gateway Partners started work on last summer.

The Gateway portion of the project also includes transportation, parking, taxiway and other infrastructure improvements.

Delta’s new terminal will consist of four concourses connected by a centralized check-in lobby, security checkpoint and baggage claim area.

The terminal will have widened concourses, larger gate area, more seating, and 30% more concession space than the existing terminals. It will have a new Delta Sky Club as well.

Once Gateway and Delta finish their work, LaGuardia’s terminals B, C and D will be unified, with passengers reaching the gates from check-in via bridges that cross over the taxiway.

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