The airport was constructed as a replacement for Grundman Field and opened in 1994. Located inside the city limits Grundman Field could not lengthen the runway to accommodate business jets. In 1974 when then Mayor A. O. Gigstard created the airport authority to build Nebraska City Municipal the voters had him recalled and removed from office. He returned as mayor in 1980 as a write-in candidate. Later the new airport was approved by the voters as a bond measure.
Although most U.S. airports use the same three-letter location identifier for the FAA and IATA, Nebraska City Municipal is assigned AFK by the FAA but has no designation from the IATA.
Nebraska City Municipal Airport covers an area of 215 acres (87 ha) which contains two runways: 15/33 with a concrete pavement measuring 4,500 x 75 ft (1,372 x 23 m) and 5/23 with a turf surface measuring 2,550 x 150 ft (777 x 46 m). For the 12-month period ending July 7, 2005, the airport had 5,300 aircraft operations, an average of 14 per day: 93% general aviation and 7% military.