Insel Air was incorporated as a private limited liability company (Dutch: "Besloten Vennootschap") on September 8, 1993. Insel Air has been impacted by the Venezuelan crisis and is estimated to hold approximately $100 million in Venezuelan bolívars. The inability to convert bolívars to US dollars resulted in the airline ceasing operations of its Aruban subsidiary as of June 7, 2017, and affected the rest of the airline's operations with a major downsizing of fleet and destinations. In February 2019, Insel Air itself ceased operations as well.