The airline was established in 1968 and started operations in May 1968. It was founded by Jean Fournier and Real Poulin as a flying school. The acquisition of other related companies led to the launch into passenger and cargo transport services.
Air Satellite sustained a fatal accident on December 7, 1998, when its aircraft, a Britten-Norman BN2A Islander, fell into the St. Lawrence River one mile from the Baie-Comeau Airport, killing 7 and injuring 3 more. The crash was one cause for the airline's diminished success, which eventually led to its sale in 2007 to Exact Air.