Established on 3 April 2007 as a regional carrier, the airline operates domestic flights within Malaysia and to neighboring countries, including Indonesia, Singapore, Thailand and China.

Firefly’s early strategy focused on connecting underserved domestic markets, such as Langkawi, Alor Setar and Kuala Terengganu, with regional hubs like Penang and Subang.

The new Boeing jets were intended to provide the airline with the capacity to operate on longer domestic and regional routes, allowing Firefly to compete with established low-cost carriers such as AirAsia.

The first Boeing 737-800 was delivered in December 2010, and by January 2011, Firefly had begun operating its first jet routes, focusing primarily on domestic destinations like Kuala Lumpur, Kuching and Kota Kinabalu, along with international flights to Bandung and Surabaya.

The competitive landscape in Malaysia's aviation sector became more intense, especially with the rapid expansion of budget airlines like AirAsia and the emergence of Malindo Air in 2013.

Firefly struggled to maintain profitability with its jet operations, as aggressive pricing strategies from competitors put significant pressure on the airline’s yields and load factors.

[10] Its fleet expansion plans included an order by parent company Malaysia Airlines in December 2012 for 36 ATR 72-600 aircraft, with 20 allocated to Firefly and 16 to MASwings.

Compounding these issues, Malaysia Airlines faced severe financial difficulties starting in 2015, which led to the cancellation of the remaining ATR 72-600 orders.

By 2016, Firefly retired all eight of its newly delivered ATR 72-600 aircraft and scaled back its expansion plans as it struggled to maintain operations in an increasingly competitive market.

[11] During this period, Firefly faced significant competition from emerging carriers such as Malindo Air, which entered the market in 2013 and rapidly expanded its domestic and regional networks.

Firefly's role was reassessed as part of MAG's Long-Term Business Plan (LTBP), announced in 2019, which identified the airline as a key component in the recovery of Malaysia's aviation sector.

The plan emphasized leveraging Firefly’s strengths in regional operations and underserved routes, with discussions also exploring the potential reintroduction of jet services to improve competitiveness in the low-cost carrier market.

[14][13] The airline reintroduced Boeing 737-800 aircraft to its fleet, focusing on domestic routes from Penang International Airport to key destinations such as Kota Kinabalu, Kuching and Johor Bahru.

Firefly’s current fleet consists of ATR 72 turboprops and Boeing 737-800 jets, supporting its dual focus on regional and domestic connectivity.