The airline was established in 2003 and started operations on March 6, 2003. It was founded by Hooters of America restaurant owner Robert Brooks, who acquired Pace Airlines in December 2002. All flights were operated by Pace Airlines. Hooters Air was owned by Hooters of America, Inc. Brooks initially envisioned Hooters Air as an unconventional means of generating awareness for the Hooters restaurant brand; the carrier was sometimes referred to as a "flying billboard" for the restaurant chain.
Aside from its unorthodox neighborhood chain-restaurant tie-in, Hooters Air sought to differentiate itself from other carriers with a distinctive style of in-flight service. The carrier was marketed towards golfers in an effort to bring casual and tournament players to Myrtle Beach's 100+ championship golf courses. Two "Hooters Girls," dressed in their restaurant uniforms, were on each flight assisting the (traditionally attired) in-flight crews with hospitality duties. The company advertised nonstop flights for most routes. Although Hooters Air billed itself as a low-fare carrier, rows of seats were removed from the aircraft to provide 34" seating pitch to all passengers, comparable to the legroom offered by many carriers' business classes; in keeping with the golf-friendly orientation of the carrier, this was called "Club Class" seating. Additionally, all seats were upholstered in dark blue or black leather, and all aircraft were painted in Hooters' orange and white company colors featuring the company logo, and mascot ("Hootie the Owl"), on the vertical stabilizer. Also, at a time when many low-cost carriers were eliminating in-flight frills in an effort to curtail expenses, Hooters Air served complimentary meals to all customers on trips lasting over one hour.
On December 8, 2005, Hooters announced that it would end service to Rockford, Illinois on January 5, 2006 as a result of the airport authority bringing in a competing airline (United Airlines) on its Rockford-Denver route, and providing revenue guarantees for the competitor.
All commercial services were suspended on January 9, 2006. Pace Airlines is continuing with charter services. On April 17, 2006, Hooters Air ceased operations, halting scheduled Public Charter service and refunding tickets. The company attributed this cessation of service primarily to a marked increase in fuel costs in the wake of Hurricanes Katrina and Rita in the autumn of 2005.