At the end of the decade, the airline's economic situation worsened due to a poorly led management and the heavy maintenance costs of its ageing fleet. Government employees also sought to fly non-revenue, given the typical patronage in the Dominican Republic. This often displaced paying passengers. Subsequently, the fleet and network were scaled back, leaving only the original routes like New York, Miami, Caracas, and San Juan. In an effort to save on maintenance costs, Dominicana began to operate leased aircraft (mostly Boeing 727, but also in Q1 and Q2 of 1993 an Airbus A300 from Conair). Nonetheless, the financial situation further worsened into the 1990s, which coincided with a negative customer reputation (like lost or delayed luggage as well as unreliable schedules). In 1994, now also faced with Cat1 restrictions in the US, Dominicana wet-leased Boeing 737-300 and a Boeing 757-200 from Mexican low-cost airline TAESA. Further aircraft were wet-leased from Express One International, Atlantic Aviation and Carnival Air Lines. During Christmas of 1994, many Dominicana VFR passengers were stranded at JFK, MIA, and SJU when the airline was not able to provide the necessary funding to the lessors for operating the heavily-booked Christmas flights (and, overbooked for the B727 the lessors were providing, in fact, since an A300 had been expected to be wet-leased). As a consequence to the outrage, in early 1995 the government of the Dominican Republic decided to shut down the airline. While the shutdown was originally only planned as a temporarily measure to get re-organized, the company never became operational again. The vice president at the time was quotted saying that "Dominicans can fly APA Internacional" which was another "local" airline that benefitted handsomely from Dominicana's demise. While various attempts have been made to privatize the airline, no real efforts came to fruition. American Airlines and later JetBlue dominated the market and the business case for a new Dominican proper flag carrier is relatively weak for the investment that would be required and the debts that would have to be honored in order to use the Dominicana name.
The most common Dominicana livery consisted of a metallic silver fuselage, with red and blue cheatlines tail painting, representing the colors in the Dominican flag. The Dominicana titles was written in black letters above the passenger windows.
On 17 July 1958 at 10:16 UTC, a Curtiss-Wright C-46 Commando cargo aircraft (registered HI-16) operating Dominicana Flight 402 from Ciudad Trujillo (today's Santo Domingo) to Miami crashed shortly after take-off due to an engine problem, killing the two pilots on board.
On 23 June 1969 at 15:42 local time, a Dominicana Aviation Traders Carvair cargo aircraft (registered HI-168), which was operating Flight 401 from Miami to Santo Domingo, crashed shortly after take-off from Miami International Airport, killing all four persons on board, as well as six people on the ground. The aircraft had suffered an engine failure during take-off run, on which the pilots were not able to react accordingly.
On 5 September 1993, a Dominicana Boeing 727-200 (registered HI-617CA) was destroyed in a fire at Las Américas Airport. The then 20 years old aircraft had been operating a scheduled flight from San Juan to Santo Domingo carrying 98 passengers and 7 crew members, when the cabin filled with smoke during disembarkation, which was caused by a fire due to electrical overheating. All people involved managed to leave the aircraft before it was completely engulfed by the flames.