Dniproavia was established in 1933 as Dnipropetrovsk Integrated Air Squad, forming part of then Soviet national airline Aeroflot. On 22 June 1996, the airline became a joint stock company in a state-owned entity which included Dnipropetrovsk International Airport, thus giving the airline full control over its home base. Dniproavia announced a loss of just over 6 million USD for 2006, despite increasing revenues by 17 percent and carrying 54 percent more passengers. It blamed the loss on the suspension of its flights to Germany, due to a dispute with the German authorities over Lufthansa's landing rights at Dnipropetrovsk Airport. In October 2009, the airline was sold to Galtera investment group, however, it is now controlled by Ukrainian-Israeli entrepreneur Ihor Kolomoyskyi's Privat Group.
As of 25 March 2012, as a result of the Anti-monopoly committee of Ukraine's decision to allow the consolidation of the Ukrainian Aviation Group's physical and operational assets, Dniproavia no longer operates flights with its own code, but rather on behalf of its parent company Aerosvit.
By mid of June 2012 the airline introduced their first Embraer 190. All Embraer 190 are ordered and operated by Dniproavia, but are operated for the airline-partner AeroSvit
On the 9 January 2013 the company ceased all operations., but some flights were resumed on 1 February 2013
24 April 2003: A Dniproavia Yakovlev Yak-40 (registered UR-87918) ran off the runway after a hard landing at Dnipropetrovsk International Airport following a scheduled domestic flight. The aircraft came to a rest 100 metres away from the runway and was substantially damaged. There were no fatal injuries amongst the 13 passengers and 4 crew members on board.
28 April 2011: A Dniproavia Embraer 145 (registered UR-DNK) ran off the taxiway after having just exited the runway at Moscow's Sheremetyevo International Airport. As a result of this, the aircraft's landing gear gave way and its chassis was badly damaged. However, the aircraft was quickly evacuated and made safe by airport rescue personnel and no injuries were reported, amongst the 30 passengers and 4 crew members, as a result of the incident.