The airline was established in 2005 as İzmir Hava Yolları by a group of businessmen from İzmir. It started operations on 14 June 2006.
Starting in 2012, all IZair flights were marketed under the Air Berlin Turkey brand,[3][4] a cooperation between Air Berlin and Pegasus Airlines. The cooperation was discontinued in 2013, with the brand itself being abandoned.
On 29 February 2012 the last remaining Airbus A319-100 was returned to the lessor.
In November 2018, it was announced that IZair would be dissolved and merged into Pegasus Airlines by the end of 2018.[5]
On 10 March 2010, Pegasus Airlines Flight 361, an Airbus A319-100 operated by IZair on a ferry flight made an emergency landing at Frankfurt Airport in Germany after a malfunction in the nose gear. The flight landed safely but blew both front nose gear tires. The airport closed runway 07R/25L for 3 hours to allow recovery.[7]