On 29 January 2008, plans were announced to merge TUIfly with Eurowings and Germanwings (Lufthansa low-cost subsidiaries) to form a joint and independent holding company, but the talks were ultimately unsuccessful.

[10] In January 2016, TUI fly Deutschland also announced it would leave Hamburg Airport entirely due to the increasing competition from low-cost carriers.

[12] On 5 October 2016, TUI fly Deutschland confirmed it was in talks with Air Berlin and Etihad Airways to create a new holding company for leisure operations.

The flights were originally planned to begin in the Winter 2020/21 season, with scheduled and charter services to the Dominican Republic, Mexico, Jamaica, and Barbados.

In December 2020, the airline announced a major downsizing in operations with a reduction from over 30 to 17 aircraft while also terminating all services from Cologne/Bonn, Basel/Mulhouse, Paderborn/Lippstadt and Karlsruhe/Baden-Baden.

TUI fly Deutschland itself offers drinks, snacks, and meals on flights to and from Cape Verde, Egypt, Greece, Israel, southern Italy, Morocco, Portugal, Spain including the Canary Islands, and Tunisia.

Hot meals are served on the longest flights, including those to the Canary Islands, Cape Verde, Egypt, and Madeira.

[24] TUI fly Deutschland operates from several German airports to leisure destinations mainly around the Mediterranean, such as Spain and Greece.