Based in Baku, adjacent to Heydar Aliyev International Airport, the carrier operates to destinations across Asia, the Commonwealth of Independent States (CIS), and Europe.

[7][8] In 1990, Azerbaijan announced that it was setting up its own airline, and that it would be independent of Aeroflot, the long-time provider of air services for the Soviet republics.

A scheduled Baku-Istanbul route was launched in January 1991 in partnership with Turkish Airlines, and the cargo enterprise Aviasharg was created in cooperation with the United Arab Emirates.

AZAL had an extensive involvement with the Farhad Azim associated Aviation Leasing Group (ALG), a U.S.-based lessor of Boeing 727s.

[10][11] It had a transatlantic charter cargo joint venture with ALG's Buffalo Airways, which was also training AZAL aircrews to Western standards in Dallas, Texas.

[17][18] In July 2004, two of AZAL's airliners were impounded by Turkey over a 12-year-old debt owed by Azerbaijan's Agriculture Ministry to a Turkish company.

In the same month, AZAL ordered new Ukrainian-made, 52-passenger Antonov An-140 turboprops to replenish its regional fleet, paying about $36 million for four planes.

[9] On 22 July 2010, Boeing and Azerbaijan Airlines signed an agreement to substitute two Next-Generation 737 airplanes for one 767-300ER (extended range) and two 767 Freighters.

[21] The new route provided direct flights between Azerbaijan and China, fostering closer business and tourism exchanges between the two countries.

Later on, the service continued, and as of February 2025, it operates flights along the Baku-Beijing route twice per week-on Tuesday and Sunday, reconnecting the country to East Asia once again.

[25] On 12 November 2017, Boeing agreed to sell five 787-8 aircraft to Azerbaijan Airlines, valued at about $1.9 billion at list prices.

On 28 July 2023, it was announced that Azerbaijan Airlines and Buta Airways would merge into a single brand, AZAL, with the consolidation set to take place in October of the same year.

A month later, AZAL started regular flights to Karabakh, marking the first instance of Azerbaijani commercial travel to the region since the end of hostilities.

During the event, Azerbaijan’s Ambassador to South Korea, Ramin Hasanov, emphasized that the introduction of direct flights would contribute to strengthening bilateral relations and boosting tourism exchanges between the two nations.