The airline was originally formed in 1985 to handle the charter operations of Transwede Airways. In 1996, the charter part of the airline was taken over by Swedish tour operator Fritidsresor and renamed Blue Scandinavia. When Britannia Airways took control in 1998 following the acquisition of Fritidsresor by Thomson, the airline was renamed Britannia AB and later rebranded as Britannia Nordic. In 2000 Preussag (later TUI) acquired the Thomson Group.
In November 2005, the airline was rebranded as Thomsonfly and in May 2006 as TUIfly Nordic due to the new marketing strategy of the TUI Group. In the case of TUIfly Nordic, sometimes the logo of 'Fritidsresor' is marked on the fuselage to indicate their role as the companies main tour operator.