Mayor Rudolph Giuliani says rescuers have recovered 161 bodies following the Queens plane crash.
He says six people on the ground are missing. There were 255 people on board the American Airlines flight.
He says although it is a horrific tragedy, the casualty list could have been far larger.
"It could have been far worse," he said. "It was amazing the way the plane landed in one defined area."
New York Governor George Pataki says a number of families have already arrived in the city. Grief counsellors are on hand to help them.
He says the experience of September 11 is helping the city to be as "compassionate and supportive" as possible following the American Airlines A300 Airbus flight 587 crash.
Governor Pataki says there are reports the pilot dumped fuel over Jamaica Bay, indicating he knew the plane had mechanical problems.
The Mayor and Governor made their comments to a press conference in the city.
PA