Jet Airways, who offer flights to New York, Hong Kong and London amongst others has also been shortlisted for the title, with the winner due to be announced later this month.
Editor of Which? Holiday Lorna Cowan said: "Palmair may be small, but it punches above its weight and proves that short-haul airlines really can keep their customers satisfied.
"We often hear about long delays and lost baggage, but the Which? Best Airline Award is about recognising those airlines that make getting to your destination an enjoyable part of the travel experience - where you can check-in with the minimum of fuss, there's a decent in-flight service and the price is right, too."
Bournemouth has been home to Palmair since it was founded in 1993 and currently offers flights to Italy, the Canary Islands and several destinations in Spain.
The airport recently received a boost from Ryanair which revealed new flights from the south coast hub to Milan and Paris.
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