It started operations in January 2016 but, mired in debt, it stopped flying in October the same year and was eventually declared bankrupt.

Alas Uruguay was founded in 2013 on the initiative of a group of former PLUNA employees, but several difficulties led to it starting operations only almost three years later.

[2] After several postponements, Alas Uruguay commenced operations on 21 January 2016, with a flight from Montevideo to Asunción, Paraguay,[1] followed by Buenos Aires, Argentina six days later on the 27th.

[5] That day, its last remaining plane was repossessed by the lessor and Alas Uruguay filed a request to the Uruguayan authorities for a 60-day suspension of its activities,[5] but operations never resumed and the airline lost its air operator's certificate (AOC) at the end of that period.

[7] Negotiations with Chilean airline Latin American Wings to take over the company failed[8] and Alas Uruguay was declared bankrupt, but as of 2017 Azul Brazilian Airlines was negotiating with the Uruguayan government to establish a subsidiary in the country, taking up some of Alas Uruguay's routes and staff.