Palanga Airport started operations in 1937 at a site 7 kilometers East of the current terminal, near the Palanga-Darbenai road. The Lithuanian Air Force pilots were trained there. In 1939, the first scheduled airline service in Lithuania began operating on Kaunas – Palanga route. From 1940–1941, and again in 1945–1963, the airport was used by the Air Force of the Soviet Union. The new air strip and facilities at the current site first appeared during the post-World War II period. In 1963, the airport was converted to a civilian airport. In 1991, Palanga Airport was re-registered as a national airport owned and run by the state. Since 1993, the number of passengers passing through the airport has been increasing annually. Between 1994 and 1997, the passenger terminal was renovated. Passenger services and luggage handling was modernized to comply with the requirements of the International Civil Aviation Organization. Between 1994–1995, the flight control center was refurbished. In 1996–1997 the runway surface, and in 1998 the airport apron and taxiways were renovated. Since 1997, the airport joined the major international aviation organization ACI. After Lithuania became a member of the European Union, passengers in 2004 increased more than 60% in comparison with that of 2003. Infrastructure improvements continued in 2007 with the construction of North terminal to expand the terminals' area by 2000 m2 as well as to comply with Schengen border crossing regimen. In June–October 2007 the runway 01/19 was expanded to 2280x45 meters along with installation of LIH lighting and embedding the runway centerline lights. The facility expansion completed in 2007 has made long-range route servicing a possibility. Over two hundred people are employed by the airport facilities.
Terminals
Two adjacent terminals connected by short walkways and a transit area serve the airport:
The South Terminal was built in the seventies and modernized in the late nineties. It has been serving as the check-in area for all flights. It also houses airline offices and cafe/bar facilities.
The new North Terminal opened on 26 October 2007, with 2000 m2 of space, to augment airport capabilities to serve arrivals and departures to and from non-Schengen zone countries.
Because of one-level terminal buildings layout where both departures and arrivals are handled on the ground floor level, there are no jet bridges at the airport. Passengers are transported to and from the aircraft by specialized shuttles.
Latvian transfer company Flybus.lv provides transfer service from Palanga airport to Liepaja and vice versa. Shuttle buses are connected with Ryanair, WizzAir, Norwegian and other flights.