Air Algérie SpA (Arabic: الخطوط الجوية الجزائرية, al-Khuṭūṭu l-Jawwiyyatu l-Jazāā’iriyyah) is the flag carrier of Algeria, with its head office in the El-Djazair office block in Algiers. With flights operating mostly from Houari Boumedienne Airport in Algiers and Ahmed Ben Bella Airport in Oran, Air Algérie operates scheduled services to 33 domestic destinations in Algeria and 42 international destinations in 28 countries across Europe, North America, Africa, Asia, and the Middle East. Air Algérie is 100% owned by the Government of Algeria.

In 1946, Compagnie Générale de Transports Aériens (CGTA) was established. It started operating flights between Algeria and Europe on a charter basis in 1947. However, by the end of the decade, CGTA was operating scheduled flights serving Algiers, Basel, Bône, Geneva, Marseille, Paris, Philippeville, and Toulouse. In 1952, three 34-seater Bretagnes joined a fleet of seven DC-3s. Meanwhile, Compagnie Air Transport (CAT), a subsidiary of Air France and Compagnie Générale Transatlantique, had been formed in the late 1940s to connect Basel, Lyon, Marseille, Paris, and Toulouse with Algiers, Constantine, and Oran. Seasonal London–Deauville, and London–Le Touquet flights were also undertaken. Following a drop in traffic after 1951, a merging partner was under consideration.

CGTA, and CAT merged on 23 May 1953 to form the Compagnie Générale de Transports Aériens Air Algérie, with a combined fleet that included one Breguet 761, six Bretagnes, five DC-3s, and three DC-4s. Following the merger, Air Algérie commenced seasonal services to Ajaccio, Clermont, Montpellier, and Perpignan. Furthermore, Switzerland was added to the regular schedule, a stop at Palma was performed on a weekly basis in partnership with Aviaco, and most of the trans-Mediterranean routes were operated in a pool agreement with Air France, with the French carrier flying 54% of these services, and the remainder was left for Air Algérie. Flights to the Cote d'Azur were added in the late 1950s.

Two Noratlas aircraft were acquired in July 1957, with a third entering the fleet in July the following year. In addition, it became the first private French carrier to order the Caravelle in early 1958, the first of which was handed over by the manufacturer in January 1960. Following delivery, the aircraft was deployed on the Algiers–Paris route. The type was also used to fly Paris–Bône and Paris–Oran services in the subsequent months. By April 1960, Air Algérie's fleet consisted of three Caravelles, three DC-3s, ten DC-4s, two Lockheed L-749 Constellations, and three Noratlases. The Caravelles were gradually deployed on the routes previously flown with the Constellations and the DC-4s, which were used for cargo services or sold.

Two shipping companies, Compagnie Générale Transatlantique, and Compagnie de Navigation Mixte, were the owners of a majority stake (98%) in Air Algérie until Algeria gained its independence in 1962. Following independence, the Délégation Générale in Algeria and Air France took over a controlling interest. The financial structure changed in March 1963, when the shipping companies and Air France ceded a 31% interest, and the Algerian government took possession of 51% of the company assets, with the airline gaining flag carrier status. In April 1964, the government increased the participation in the airline to 57%. That month, a contract was signed for the acquisition of two Ilyushin Il-18s aimed at operating the Algiers–Moscow service. Air Algérie took delivery of just one of these aircraft, as the contract was later cancelled. The sole Il-18 in the fleet was used by the government. There were eight DC-4s in the airline's fleet by April 1968. That year, four ex-Lufthansa Convair 440s were bought and converted to the 640 version. These aircraft came to replace the ageing DC-4s. Charter operations made up to 20% of the airline activities.

By March 1970, the government was the owner of 83% of the company; at this time, a Boeing 737-200, five Caravelles, four CV-640s, three DC-3s and one DC-4 were part of the fleet. Société de Travail Aérien, a domestic carrier that had been founded in 1968, was taken over by Air Algérie in May 1972. In August, three Fokker F27-400s were ordered for £2.5 million. In September, with a second Boeing 737 pending delivery, two more aircraft of the type —one of them a convertible model— were ordered. That year, the government of Algeria boosted its participation in the carrier to 100% when it acquired the remaining 17.74% stake held by Air France. A new route to Karachi was inaugurated in 1975. In November 1979, four Boeing 727s were ordered in a deal worth US$62 million.

By July 1980, Air Algérie had 5,621 employees and a fleet comprising 57 aircraft, including 14 Ag-Cats, six Boeing 727-200s, ten Boeing 737-200s, three Boeing 737-200Cs, one Boeing 747-200C, one Cherokee Six, two Convair CV-640s, one Douglas DC-8-63CF, one Nord 262 and 18 Queen Airs; at this time, the company offered international scheduled services to Belgium, Bulgaria, Czechoslovakia, Egypt, France, Germany, Italy, Yugoslavia, Libya, Romania, Spain, the UK, the USSR and Switzerland, among other countries, as well as an extensive domestic network. In January 1981, the carrier ordered three Lockheed L-100-30s; by late June the same year, the first of these aircraft was due to be delivered. In November 1981, a Boeing 727-200 and a Boeing 737-200 were acquired. Three Boeing 737-200s were ordered for US$50 million in 1983. Air Algérie became Airbus' 48th customer when it placed an order for two Airbus A310s in 1984. That year, a subsidiary called Inter Air Services (IAS) (French: Lignes Intérieures Algériennes), an airline that flew domestic and regional services using Fokker F-27 aircraft, was formed. The IAS network was operated on Air Algéries's behalf, and at March 1985 included Adrar, Algiers, Bechar, Bordj B. Mokhtar, Djanet, El Golea, Ghardaia, Hassi Messaoud, Illizi, In Amenas, In Salah, Oran, Ouargla, Tamanrasset and Timimoun; by this time, Air Algérie had 6,788 employees. In 1989, the carrier ordered three Boeing 767-300s for US$264 million.

The first Boeing 767-300 was handed over by the aircraft manufacturer in mid-1990. That year, the carrier entered a process of restructuring that would last until 1995, following years of losses that totalled US$64,000,000 (equivalent to $157,717,779 in 2025) only for 1990, with debts rising to US$402 million after a devaluation of the local currency. Restructuring seemingly bore fruit, as the company made a profit of US$14.5 million in 1992.