American Airlines is preparing to suspend all flights between Phoenix Sky Harbor International Airport (PHX) and Monterrey International Airport (MTY), ending a transborder service that lasted just over three years. The airline’s final flight on the route is scheduled for December 1, following recent schedule adjustments that removed future operations from its network plans.
The decision highlights the challenges airlines face when operating international routes that fail to generate sufficient passenger demand. Although Phoenix is strategically positioned near the Mexican border and remains an important gateway for American Airlines, the Phoenix–Monterrey service struggled to achieve the passenger volumes needed to remain commercially viable.
American Airlines Cuts Phoenix–Monterrey Service After Three Years
American Airlines launched the Phoenix–Monterrey route in January 2023, restoring a connection that had not existed for nearly two decades. The service marked the first time in 19 years that passengers could fly directly between the two cities, offering a convenient option for business travelers and leisure passengers traveling between Arizona and northern Mexico.
The route initially operated daily with Embraer E175 regional jets flown by American Eagle regional partners. The aircraft type was selected because its smaller capacity allowed the airline to match supply with expected demand while providing access to a market that did not require larger mainline aircraft.
However, schedule data from aviation analytics company Cirium shows that American Airlines later reduced the route to five weekly flights before briefly planning a return to daily service. Those plans changed quickly, and the airline ultimately removed the route entirely beyond early December.
The suspension reflects a broader industry trend where airlines continue to adjust international networks based on profitability, aircraft availability, and changing travel patterns rather than simply maintaining routes because of strategic importance.
Low Load Factors Made The Route Difficult To Sustain
The primary factor behind American Airlines’ decision appears to be weak passenger demand. According to Cirium passenger data covering the 12 months ending in April, the Phoenix–Monterrey route operated 319 departures with only 13,739 passengers filling 24,244 available seats.
That resulted in an average load factor of just 56.67%, meaning fewer than six out of every ten seats were occupied. For an airline operating a relatively small regional aircraft, such numbers can create significant financial pressure because every flight still requires pilots, maintenance, airport fees, fuel, and handling expenses.
The Embraer E175 aircraft used on the route typically carries 76 passengers. Based on the recorded passenger numbers, each Phoenix-to-Monterrey flight carried approximately 43 travelers on average.
Return flights from Monterrey to Phoenix performed slightly better, with 14,849 passengers occupying 24,320 available seats across 320 flights. That produced a load factor of 61.06%, but the improvement was still not enough to support the route long term.
American Airlines Maintains A Strong Mexico Network From Phoenix
While the cancellation of the Monterrey route represents a setback for travelers seeking a direct connection between Phoenix and northern Mexico, it does not indicate a broader retreat from the Mexican market.
American Airlines continues to maintain an extensive network from its Phoenix hub, serving multiple destinations across Mexico. According to planned schedules for January 2027, the airline expects to continue operating flights to 10 Mexican airports from Phoenix.
Popular destinations such as San José del Cabo, Guadalajara, and Puerto Vallarta remain important parts of the network. San José del Cabo is expected to receive the highest frequency, with four daily flights during January, while Guadalajara and Puerto Vallarta will continue with multiple daily services.
The airline will also maintain daily flights from Phoenix to destinations including Cancun, Hermosillo, Loreto, Mexico City, and Mazatlán. Lower-frequency routes to Ixtapa and Manzanillo will continue with limited weekly service.
Route Decisions Reflect Changing Airline Strategies
The Phoenix–Monterrey suspension demonstrates how airlines constantly evaluate international routes based on performance data. Even routes with strong geographic logic can be removed if passenger demand does not produce sustainable financial results.
Monterrey remains one of Mexico’s most important industrial and business centers, but competition, pricing pressure, and shifting travel behavior can make certain city pairs difficult to operate profitably.
For American Airlines, reallocating aircraft and resources toward stronger-performing Mexican destinations may provide better returns. The airline’s continued commitment to Mexico shows that the cancellation is not a withdrawal from the market but rather a strategic adjustment designed to improve network efficiency.
As airlines continue refining their post-pandemic international networks, routes with consistently low passenger volumes are likely to face similar reviews. The Phoenix–Monterrey suspension is another example of how commercial performance ultimately determines the future of airline connections.
