This airline was established in 1996 and started operations on 26 April 1996. In January 1999 the Spanish airline Air Nostrum wholly acquired Denim Air. In October 2002 the management team of Denim Air bought back the shares in a management buy-out. In June 2003 it started operating domestic flights in Germany from Augsburg to Düsseldorf and Berlin. In 2005 scheduled operations ceased after the airline was acquired by Panta Holdings which used to own VLM Airlines. It has since concentrated exclusively on providing ACMI services and in 2006 operations were moved to Amsterdam Airport Schiphol.
On 18 February 2010, Denim Air ceased operations after all wet-lease contracts had ended within weeks. Dutch legal company De Vos & Partners has been appointed as curator of wet-lease specialist Denim Air after it was declared bankrupt. A successful restart of the company was initiated.