At LaGuardia, Shuttle flights to Chicago and Washington operate out of the Marine Air Terminal, isolated from other Delta Air Lines operations and the rest of the airport. Shuttle flights to Boston operate out of Terminal C. Delta markets the Shuttle as having the closest terminal to Manhattan.

In 1980, airline industry entrepreneur Frank Lorenzo, through his holding company Texas Air Corporation, formed startup, non-union airline New York Air. Operations commenced on December 19, 1980 with hourly shuttle service between New York LaGuardia, Washington National, and Boston Logan airports in direct competition with the long-established, successful Eastern Air Lines Shuttle. Launched with McDonnell Douglas DC-9 series 30 aircraft, New York Air later added larger DC-9 Super 80s to its fleet. Just over five years later, in February 1986, Texas Air Corporation acquired debt-laden Eastern Air Lines and its shuttle operations. As a condition of the sale, the government required Texas Air to divest New York Air's takeoff and landing rights at LaGuardia and Washington National.Pan American World Airways purchased them, along with gates at LaGuardia's historic Marine Air Terminal, for $76 million. The rechristened Pan Am Shuttle launched on October 1, 1986 with dedicated crews, a fleet of Boeing 727 aircraft, and a newly renovated Marine Air Terminal. Though Pan Am suffered a precipitous financial decline in the ensuing years, culminating in the airline's January 1991 bankruptcy filing, the shuttle operation remained profitable. Delta Air Lines purchased Pan Am Shuttle (including several Boeing 727s) for $113 million, thereby securing Delta's position as the third largest U.S. airline. Delta relaunched the service under the Delta Shuttle brand on September 1, 1991.

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