More than 500 balloonists from around the globe have gathered in the city for the festival, which kicked off on Saturday.
Local media reported that opening day was a disappointment with fog and clouds obscuring the view.
A few pilots did venture into the mist, one telling the NBC affiliate in Albuquerque that it was incredibly difficult to see during the flight.
But by Monday, skies had cleared, giving panoramic views of the city and clear sights of balloons designed like Star Wars character Yoda, a koala bear, a winking emoji, and more.
The festival runs through October 13.