From its hub at Tocumen International Airport in Panama City, scheduled passenger flights to a number of destinations in the Americas was offered.

Air Panamá Internacional was founded in 1967 as a joint venture between the government of Panama (67%) and Spanish airline Iberia (33%).

[2] During the 1980s, when Panama was ruled by military dictator Manuel Noriega, the route network and aircraft fleet of Air Panamá went into decline because of the worsened financial and economic situation of the company, which led to Copa Airlines emerging as the largest airline of the country.

All flight operations with Air Panamá Internacional ceased in December 1989 over the United States invasion of Panama.

In January 1990, Air Panamá Internacional declared bankruptcy and ceased operations on December 2, 1990.