The Port Authority of New York and New Jersey Board of Commissioners has authorized $110 million to expand Terminal A at Newark Liberty International Airports, adding eight new gates to accommodate passenger volumes that have already exceeded the facility’s design capacity.

Announced in a September 23, 2026, press release, the authorization addresses immediate capacity constraints at the $2.7 billion terminal. Originally designed to handle 13.6 million passengers annually when it opened in 2023, Terminal A processed approximately 18 million travelers in 2024. This rapid growth prompted the agency to accelerate expansion plans to maintain operational flexibility and improve the passenger experience.

Phased expansion and economic impact

The project is divided into two distinct phases. The southern expansion will utilize $100 million of the authorized funds to design and construct a 25,000-square-foot addition. This phase will add two common-use gates, along with new seating, restrooms, and concession spaces. Construction on the southern section is scheduled to begin in 2027, with an anticipated opening in 2029.

The remaining $10 million is allocated for planning, cost estimation, and construction phasing of a larger northern expansion. This second phase will eventually add six more gates, with a phased opening planned between 2030 and 2032.

The southern expansion alone is expected to generate $173 million in economic activity, including $76.6 million in wages. New Jersey Governor Mikie Sherrill noted that the terminal has attracted far more passengers than anticipated, and the expansion will help meet traveler demand while creating jobs for the state.

Broader EWR Vision Plan integration

The Terminal A expansion fits into the Port Authority’s comprehensive EWR Vision Plan, which aims to overhaul the entire airport infrastructure. The current 33-gate Terminal A, operated by Munich Airport NJ, serves as the initial benchmark for these airport-wide upgrades.

Future phases of the EWR Vision Plan include replacing Terminal B with a new facility, upgrading Terminal C, and reconfiguring the airport taxiway and roadway networks. A new $3.5 billion automated AirTrain system is also under development and is expected to begin operations in 2030.

Port Authority Chairman Kevin O’Toole stated that the agency left room for growth when designing Terminal A. He added that the new gates will provide modern passenger spaces comparable to the existing terminal while adding necessary flexibility for airport operations.

AirPro News analysis

The rapid saturation of Terminal A highlights a recurring challenge in major infrastructure planning, where actual demand frequently outpaces long-term design forecasts. Processing 18 million passengers in a facility designed for 13.6 million just one year after opening indicates robust travel demand and strong airline utilization at EWR. We view the swift $110 million authorization as a necessary operational relief valve rather than a luxury upgrade. By splitting the project into a near-term southern expansion and a longer-term northern build-out, the Port Authority is attempting to mitigate immediate gate constraints while buying time to integrate the larger six-gate addition with the upcoming AirTrain and Terminal B replacement projects.

Sources: Port Authority of New York and New Jersey

FTAI Aviation Ltd. has acquired 27 Boeing 737-700 aircraft from the WestJet Group in a transaction that splits the fleet between continued airline operations and aftermarket engine support. Announced on September 28, 2026, the deal marks the formal beginning of WestJet’s retirement program for its older-generation narrowbody fleet.

In a press release, FTAI detailed that the acquisition is divided into two distinct segments. Seventeen of the aircraft were acquired through a sale-leaseback arrangement via FTAI’s 2026 special purpose vehicle (SPV). The remaining 10 off-lease airframes will be absorbed into FTAI’s Aerospace Products division to harvest CFM56-7B engines and modules.

Structuring the 27-aircraft transaction

The sale-leaseback portion of the deal utilizes capital from FTAI’s 2026 SPV. This investment vehicle secured a $2.0 billion warehouse financing facility on August 14, 2026. The facility was syndicated among 13 financial institutions to fund the acquisition of on-lease, mid-life Boeing 737NG and Airbus A320ceo aircraft.

The 10 off-lease aircraft will transition out of active service. FTAI President David Moreno stated that these retiring airframes will supply the company’s exchange pool with CFM56-7B engines and modules, supporting the maintenance requirements of FTAI’s global customer base.

Moreno noted that the dual-purpose transaction highlights the interaction between the company’s Strategic Capital and Aerospace Products businesses, offering Airlines a combination of sale-leaseback funding and a flexible exit strategy for aging airframes.

WestJet fleet modernization strategy

For the Calgary-based WestJet Group, the agreement represents a definitive step in its fleet renewal program. The carrier’s move to draw down its 737-700 inventory aligns with broader operational shifts reported in June 2026. Facing high fuel costs, WestJet accelerated the retirement timeline for the older variants, planning to replace them on a largely one-for-one basis with newer, more fuel-efficient Boeing 737 MAX 8 aircraft.

“This 27-aircraft transaction is a strategic milestone that officially marks the start of our retirement of our 737-700 fleet,” said Mike Scott, WestJet Group Executive Vice-President and Chief Financial Officer. “We’re pleased to partner with FTAI Aviation Ltd. to make this happen, and we look forward to building on this relationship for future opportunities.”

AirPro News analysis

We view this transaction as a textbook execution of FTAI’s integrated business model. By acquiring a mixed portfolio of active and retiring aircraft in a single deal, FTAI secures immediate lease revenue while simultaneously feeding its aftermarket engine business. The CFM56-7B remains one of the most widely used Commercial-Aircraft engines globally. Securing a steady supply of modules from retiring 737-700s positions FTAI to capitalize on ongoing supply chain constraints in the maintenance, repair, and overhaul (MRO) sector. For WestJet, offloading 27 older airframes in one transaction simplifies its transition to the Boeing 737 MAX 8 and provides an immediate capital injection through the sale-leaseback of the 17 active units.

Sources: FTAI Aviation Ltd.

Lithuanian charter and wet-lease operator KlasJet has secured Part 129 Operations Specifications approval from the US Federal Aviation Administration (FAA), clearing the carrier to provide immediate capacity to Airlines facing fleet constraints.

Announced in a press release on September 17, 2026, the authorization allows the Avia Solutions Group subsidiary to conduct Aircraft, Crew, Maintenance, and Insurance (ACMI) and charter operations involving the United States. The approval positions KlasJet to capitalize on a North-America market currently managing seasonal demand fluctuations and ongoing aircraft Delivery delays.

Regulatory clearance and operational readiness

The FAA approval marks the culmination of a multi-agency certification process. KlasJet confirmed it has secured all necessary authorizations from the Department of Transportation (DOT), the Transportation Security Administration (TSA), and Customs and Border Protection (CBP) to commence commercial flights to, from, and through US territory.

Diako Rad, Director Flight Operations at KlasJet, noted that the regulatory clearance fundamentally shifts the company’s discussions with prospective US clients.

“The question has changed when we are in discussion. Previously, when a carrier asked whether we could operate in the US, the answer was that we were working towards it. Today, the answer is yes,” Rad stated in the press release.

The ACMI model allows airlines to wet-lease aircraft to cover temporary capacity shortfalls without committing to long-term leases or hiring additional crew. Rad emphasized that KlasJet provides the aircraft, crews, maintenance, and insurance, integrating directly into the client airline’s existing network.

Boeing 737 fleet composition and regional expansion

KlasJet currently operates a dedicated ACMI fleet of seven Boeing 737-800 aircraft, each configured to accommodate between 186 and 189 passengers. The carrier also maintains a separate VIP charter fleet comprising two Boeing 737-300s and three Boeing 737-500s.

The US authorization builds upon the company’s broader North American expansion strategy. In late 2023, KlasJet obtained a Canadian Foreign Air Operator Certificate (FAOC), establishing its initial footprint in the region.

Driven by global aircraft shortages, KlasJet reported that its ACMI block hours and passenger volumes nearly tripled in 2024 compared to the previous year. To meet this sustained demand, Chief Executive Officer Justinas Bulka has previously outlined a target to expand the carrier’s ACMI fleet to 40 Boeing 737-800s by 2028.

AirPro News analysis

We view KlasJet’s entry into the US market as a timely development for domestic operators struggling with capacity constraints. With major original equipment manufacturers (OEMs) facing persistent supply chain bottlenecks and delivery delays, US airlines are increasingly reliant on wet-lease providers to protect their schedules during peak travel seasons. By securing FAA Part 129 approval, KlasJet transitions from a regional European player to a viable capacity provider in the world’s largest aviation market. This move aligns with the broader strategy of its parent company, Avia Solutions Group, which actively positions its various subsidiary airlines across multiple global jurisdictions to ensure year-round fleet utilization and mitigate regional low-season risks.

Sources: KlasJet