Luxair was set up in 1961 to meet the growing demand for air links between Luxembourg and other European cities.

In 1962, Luxembourg Airlines became[clarification needed] Luxair and began flights by launching a Luxembourg–Paris route with a Fokker F27 Friendship.

[citation needed] From 1964 to 1969, Luxair operated three Lockheed L-1649A Starliner aircraft in a cooperative agreement with Trek Airways, from Luxembourg to Johannesburg.

A third aircraft was ordered in August 2003 and delivered in January 2005.On 21 December 2003, Luxair launched a new logo depicting a flying boomerang.

To lessen its exposure,[clarification needed] Luxair decided to reintroduce turboprop aircraft, and in June 2006 it signed a firm order with Bombardier Aerospace for three Dash 8-Q400s, plus three options.

In 2009, the airline was awarded as the most punctual scheduled operator at London City Airport during 2008 by Flight on Time, based on CAA statistics.

In July 2015, Luxair's minority shareholder Lufthansa announced it would sell its 13 per cent stake in the airline it had held since 1993.

The special livery was meant to spread a positive message at the moment of the restart of operations after the first COVID-19 lockdown[citation needed][tone] and was the main action of the company's broader "FlyingIsAnArt" project:[83] On 25 November 2020, the company released a de Havilland Q400 with an orange logo to raise awareness for violence against women.

[84] In July 2022, Luxair was the world's first airline to paint a livery of one of its aircraft in a rainbow, to support Luxembourg Pride Month.