Yeti Airlines started its first commercial flight in September 1998 with a single Canadian built DHC6-300 Twin Otter aircraft. Within a decade it became the largest domestic airline operator with a fleet of BAE Systems Jetstream-41, DHC6-300 Twin Otter and the German built Dornier Do 228 aircraft. Yeti Airlines has added four ATR 72-500 into its fleets, two in 2017, one in 2018 and one in 2019 .

In 2009, its sister airline Tara Air was established to take over the Short Take Off and Landing (STOL) operations with the DHC6-300 and Dornier DO228 aircraft fleet. Yeti Airlines has retained its modern fleet of five Jetstream 41 twin turbo prop aircraft and four ATR 72-500 that operate on non-STOL domestic sectors of Nepal. The two airlines together continue to provide the largest network of flight routes throughout Nepal.