Monterey Regional Sets Passenger Record, Secures ‘A-/A-2’ Rating for Terminal Financing
Monterey Regional Airport (MRY) recorded its highest annual passenger total in 2025 and secured a favorable credit rating tied to financing for a new passenger terminal, marking a milestone year as the airport approaches its 85th anniversary.
The airport served 659,867 arriving and departing passengers in 2025, a 6.3 percent increase over 2024 and the highest annual total in its history. The previous record of 637,903 passengers was set in 1978.
Airport officials attributed the growth to increased airline capacity, including larger aircraft and additional frequencies deployed in response to demand for travel to and from the Monterey region.
New Route and Increased Capacity in 2026
In 2026, long-time carrier United Airlines will launch new nonstop service from MRY to Chicago O'Hare International Airport (ORD) beginning May 23. The route will be operated with Boeing 737-800 aircraft, with potential frequency increases based on demand.
United also plans to upgauge existing service to Los Angeles International Airport (LAX) and Denver International Airport (DEN), transitioning from Embraer 175 aircraft to Boeing 737-800s. The change is expected to add approximately 90 additional daily inbound and outbound seats on each route.
The aircraft upgrade marks the first time in 25 years that United mainline aircraft, rather than regional partners, will operate from Monterey.
Credit Rating Supports Terminal Project
Passenger growth and financial performance contributed to a first-time public credit rating for the airport. S&P Global Ratings assigned MRY a dual ‘A-/A-2’ rating with a stable outlook.
The rating supports a $50 million short-term revenue loan secured in February 2026 by the Monterey Peninsula Airports District to fund the MRY Metamorphosis Safety Enhancement Program. The program includes construction of a 63,000-square-foot replacement passenger terminal currently underway.
In its report, S&P cited the airport’s stable origin-and-destination demand, supported by the Monterey region’s tourism economy, along with conservative budgeting practices and rate-setting authority that supports financial metrics.
The replacement terminal is anticipated to open in early summer 2027.
Sustainability Recognition and 85-Year Milestone
As part of the Safety Enhancement Program, MRY completed a new commercial aircraft apron in fall 2025 and earned an Envision Verified rating from the Institute for Sustainable Infrastructure for its design and construction approach. Sustainability measures included diverting more than 99 percent of construction waste from landfills and implementing carbon-reduction strategies during concrete curing.
Monterey Peninsula Airports District, established by state legislation in 1941, will mark 85 years of service on March 22. Airport officials said the anniversary will be recognized through employee and public-facing events throughout the year.
With record passenger totals, expanded airline service and a major terminal redevelopment underway, Monterey Regional Airport enters 2026 positioned for continued growth in California’s Central Coast market.