The airline was established in 1929 as Aerovías de Guatemala and was founded by Alfredo Denby Chattfield. In March 14, 1945, the airline was nationalized during the government of Juan José Arevalo and established as Empresa Guatemalteca de Aviación S.A. which was shortened to Aviateca. One of the original founders was Alfredo Castaneda Duarte who also served as a pilot. Aviateca started operations in March 1946 and early aircraft operated by the carrier including the Douglas DC-3.

In 1961, service to Miami was originated with four-engined Douglas DC-6 airliners. The airline later operated the Douglas DC-6B version as well. Convair CV-240 family airliners were also acquired to replace some of the DC-3s on short-haul routes in Latin America.

Aviateca introduced jet service as a customer for the BAC One-Eleven medium twin jet in 1970. In 1974, the airline was operating the stretched BAC One-Eleven series 500 version of the British-manufactured jet on international flights to Miami, New Orleans, Mexico City, Mérida and San Jose, Costa Rica.^[2] The airline's fleet was referred to by locals as "Las Papayas Voladoras" (The Flying Papayas) due to the paint scheme used during the 1970s, in which the underbelly was painted a reddish orange. It also temporarily leased a Fokker F28 Fellowship, some Boeing 720s and a Douglas DC-8-61. Aviateca later acquired two Boeing 727-100s, which operated for the airline in the 1980s. From 1989 on, Aviateca's fleet consisted of several Boeing 737-200 and Boeing 737-300 jetliners, including a full cargo 737-300 that operated for a few months.