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The Port Authority signed off Thursday on a massive $1.2 billion project to renovate its outdated terminals.

Delta would move out of Terminal 3, and the iconic Pan Am Worldport, which dates from the 1960s, will be demolished to make way for a airplane parking lot. It is hoped additional space for airplanes will help to ease runway congestion.

The airline will move into Terminal 4, which would be expanded with nine additional gates, a larger baggage claim area and a larger U.S. Customs area.

"It will allow Delta to bring a plane in -- particularly international -- deplane at the gate, take that plane to the parking area, cater it, clean it, fuel it, get it ready for departure, and bring it back to the gate. In between, you'll be able to use that gate for another operation," said a Port Authority official.

All of Delta's international flights will fly out of Terminal 4 once the expansion is complete, and domestic flights will continue to fly out of Terminal 2.

Passengers who spoke with NY1 on Thursday said they agreed that it is time for Terminal 3 to go.

"It needs to be scrapped and completely redone," said one traveler.

"That's a good thing, because it's old and it's outdated," said another.

The expansion will create 6,000 jobs and Delta will reportedly take on the bulk of the costs of the project.

Construction would begin this fall, and would be completed in mid-2013.