The airline was established in February 1927 as an Aeroflot department serving the Makhachkala region of the Soviet Union. In 1994, following the split-up of Aeroflot, it became known as Makhachkala Air Enterprise. In 1996, the company was rebranded as Dagestan Airlines. In March 2007, it had 809 employees.
As of December 2010, Dagestan Airlines operates scheduled flights to the following destinations: