It was equipped with Dakota and Lockheed Lodestars and carried men and supplies to forward areas throughout the Pacific theatre.

The squadron was disbanded on 31 October 1947 and most of its crews and aircraft were transferred to the government-owned National Airways Corporation.

The squadron saw action throughout the Pacific War against Japan, helped supply New Zealand forces fighting in Korea, Malaya, Vietnam, East Timor, Afghanistan, and Iraq, and provided transport to United States and United Kingdom forces in the 1990 Gulf War.

Humanitarian missions have included flying in the first Cyclone Tracy relief supplies to Darwin, assisting victims of the Bali bombing and the Boxing Day tsunami.

40 Squadron is held in high regard internationally, having won various tactical flying competitions in the USA competing against other air forces in exercises such as Green Flag East at Little Rock Air Force Base, Arkansas.

In 2003 two second-hand Boeing 757-200s[3] were purchased from Transavia, which 40 Squadron operate in transport, freight, cargo and troop movement roles.

The first Super Hercules, NZ7011 arrived at RNZAF Base Whenuapai and has begun familiarisation flights to various airports around New Zealand.

[10] In December 2024 the Boeing 737 MAX 8 and Airbus A321neo were shortlisted, with the new aircraft being intended to enter service by the end of 2027.

This was earlier than initially planned, with the program being brought forward due in part to difficulties maintaining the 757s.