Horizon Air was formed in May 1981 by Milt Kuolt, and started operations on September 1, 1981, with three Fairchild F-27 aircraft.[5] Its headquarters were in an area that is now within SeaTac, Washington.[6]

Horizon Air's first route was from Yakima to Seattle and one week later, Pasco to Seattle.[7] The general offices of Horizon Air were operated out of an old house behind Sea-Tac airport. Horizon acquired Air Oregon on June 17, 1982,[8][9] after both airlines were losing hundreds of thousands of dollars monthly, in order to consolidate and reduce their operating deficit.[10]Horizon agreed to purchase Transwestern Airlines of Utah in September 1983, once again to try to reduce operating deficit of the airline.[11]

Horizon Air Fokker F28 at Oakland International Airport in 1995A single Fokker F28 Fellowship twin jet, purchased in July 1984 from an African carrier, was the first jet owned by Horizon Air (however, the first jet operated by Horizon was a wet leasedDouglas DC-9-10).[12][13]