The Albatros D.III was the continuation of the line of "shark shaped" fighters that began with the D.I in the fall of 1916. Among the improvements was adopting the "sesquiplane" design from the Nieuport fighters, gaining climb and visibility, but weakening the structure. Still, the D.III dominated the skies and was the main killer during "Bloody April." The Austrians built the D.III under license and actually managed to improve on the original. There were still some in combat at the Armistice.

Manfred von Richthofen, to flaunt his prowess in front of the enemy, painted this airplane completely bright red, partly obscuring its markings. For this reason, he became universally known as the "Red Baron."