Initial examination for constructing an airport in Kamloops began in June 1931, when the city leased 46 acres (19 ha) from fruit-growing company BC Fruitlands. The airport's development started in 1936 and the gravel runway was completed in 1938. That same year, Kamloops acquired another 30 acres (12 ha), as well as land for airport use. The Department of Transport, now known as Transport Canada, granted money for airport development in 1939, with the airfield's runway finishing in that year. On April 13, 1939, an Aeronca aircraft made the first official landing on the runway. The airport was publicly opened on August 5, 1939, along with an air show presented at the structure itself with over 30 aircraft. Later that month, it was classified as a port of entry by the Canadian government. During World War II, additional activity occurred at the airport. In April 1942, Vancouver-based Gilbert Flight School transferred its service to Kamloops, as civil flights provided in British Columbia's Lower Mainland were canceled.

In addition, the airport was used by the Royal Canadian Air Force (RCAF) as an alternate route for the no longer existent Air Transport Command (ATC) for flights to the Soviet Union. During the war Kamloops gained access to 861 acres (348 ha) for further airport expansion, as well as the addition of taxi and apron services. However, after World War II, part of the airport's land were sold to Canada's Department of Agriculture, with the size reducing to 570 acres (230 ha). In May 1944, the Governor General of Canada at that time, Earl of Athlone, entitled the structure Fulton Field, in honor of John Fulton, a Wing Commander server born in Kamloops. This was confirmed by George H. Greer, the secretary of the Kamloops Board of Trade at the time. Throughout its history, a number of airlines have served it. Canadian Pacific Air Lines provided daily flights in 1950 connecting to the communities of Quesnel, Prince George, Williams Lake and Vancouver.

By 1951, the airport founded and became headquarters of Central British Columbia Airways, which was later known as Pacific Western Airlines, but is no longer existent. However, the following year, its headquarters was transferred to Richmond's Vancouver International Airport. The federal Department of Transport regained rights to the airport in 1961, beginning an expansion program. The airfield saw its runways expand in 1963 and 1964.

In 1966, Canadian Pacific Air Lines was serving the airport with a Vancouver – Kamloops – Prince George – Fort. St. John – Grande Prairie – Edmonton round trip flight operated with a Douglas DC-6B propliner six days a week and also a Kamloops – Williams Lake – Quesnel – Prince George round trip flown with a Douglas DC-3 six days a week as well with both of these services not operating on Sundays. The first air traffic controllers started working at Kamloops Airport in 1967. That year the airport served approximately 29,200 passengers.

There had previously been proposals for relocating the airport due to low public visibility during the fall and winter seasons of a specific year. The move was never carried out because another location could not be found. Instead the airport was expanded by 1969. This saw its administrative buildings, offices, baggage area and coffee shop being improved, costing $85,000.

Also by 1969, jet service had arrived at Kamloops as Pacific Western Airlines had begun nonstop Boeing 737-200 jetliner flights to Vancouver and Calgary with additional nonstop service to Vancouver being operated by the air carrier with Convair 640 turboprop aircraft which the airline called the "Javelin Jet-Prop". There was a flood threat close to the airport in 1972, while in the following year, the airfield's runways were extended. Obtaining 149,027 passengers by 1974, more considered the airport reliable, as it was improved with the addition of more general services.

By 1975, Pacific Western Airlines was operating all flights into the airport with Boeing 727-200 and Boeing 737-200 jetliners with nonstop service to Vancouver, B.C. (YVR) and Calgary, AB (YYC) as well as direct, no change of plane service to other destinations in western Canada.

Kamloops Airport's telecommunication equipment was provided at a separate building in 1977, with 235,600 passengers garnered from it that same year. The airport saw the start of its runways and terminals expansion in 1982 and 1984, while the following year this was completed.

In 1985, Pacific Western was operating all flights from the airport with Boeing 737-200 jetliners with nonstop service to Vancouver, Calgary, Cranbrook, Kelowna and Williams Lake. In addition, the airline was flying direct, no change of plane jet service to Edmonton Municipal Airport (YXD), Prince George, Saskatoon, Penticton and Quesnel with Pacific Western also offering connecting 737 service to Toronto, Winnipeg and Regina via Calgary and as well as connecting 737 service to Victoria and Seattle via Vancouver.