The airport was able to accommodate only small aircraft until 2008, when the length of the runway was increased to 4,500 feet to accommodate larger turboprop aircraft at a cost of ₹75 crores.
The Government of Uttarakhand had offered a subsidy to Jagson Airlines between 2005 and 2008, to undertake daily scheduled flights between Pantnagar and Indira Gandhi International Airport, Delhi. The annual subsidy was not renewed in 2008 when the runway length was increased. The government then invited Deccan Aviation to fly on the Delhi - Pantnagar route.Kingfisher Airlines, which took over Deccan Aviation, undertook seasonal flights to Pantnagar as poor weather did not allow it to fly around the year. The airport had been without a commercial service ever since Kingfisher ceased operations. Pantnagar Airport, now, has daily Alliance Air flights to and from IGI, Delhi (since 1 Oct 2014).
In August 2015, Airport Advisory Committee said that the Airport will be developed in cargo hub and the length of the runway will be increased from its present length of 1,372m to 1,865m.