Terminal 2 at the Minneapolis-St. Paul International Airport is getting bigger.

Work on adding two more gates on the terminal's north end started Thursday. When the $263 million job is completed in 2027 the facility will have 18 gates, up from the current 14.

The 168,000-square-foot expansion includes more seating for passengers flying out of gates H13 and H14, plus new restrooms, concession spaces, and additional space for airlines and tenants, said the Metropolitan Airports Commission (MAC), which owns and operates the airport.

Terminal 2, which opened in 2002, serves Sun Country Airlines and six other domestic and international carriers. The terminal had its busiest month ever in March with a record 711,612 passengers and 4,588 landings and takeoffs, the MAC said.

"We are seeing a surge in travel demand, highlighted by a string of record-setting months at Terminal 2 this year," said Brian Ryks, CEO of the MAC. "This project is a long-term strategic investment to support our airlines, improve the passenger experience, and to keep pace with demand that fuels growth at MSP and in our local economy."

Earlier this year, the airport received a $20 million federal grant for the Terminal 2 project through the Federal Aviation Administration's Airport Terminals Program.

In a separate project, two new gates are set to open this fall on the south end of the terminal, the MAC said.

And even more gates could be on the way. The MAC's MSP Airport 2040 Long-Term Plan calls for adding as many as 18 more at Terminal 2.