However, other airlines quickly adopted their own discounted advance purchase fares in the wake of Air Do's initial success, driving load factors down to around 50%.

After being significantly impacted financially in the aftermath of the September 11, 2001 attacks, and being denied additional financing from the Hokkaido prefectural government, Air Do entered Japanese corporate restructuring procedures in June 2002.

Air Do received new equity capital from a tokumei kumiai investment fund arranged by the Development Bank of Japan (DBJ), in which All Nippon Airways was a key investor.

On October 1, 2012, the company's legal name was changed from Hokkaido International Airlines Co., Ltd. to AIRDO Co., Ltd.[4] Air Do was sanctioned by the Japanese government in December 2014 for promoting a first officer to captain despite poor performance in training.

[6] In July 2021, Air Do shareholders approved a proposal to issue US$63.2 million of preferred shares to improve finances prior to the business integration.