Abstract
The management of working capital plays an important role for the success of the business operations of the airline. The study is based on data from the financial statements of the airlines in the Association of Asia Pacific Airlines (AAPA) for the period of 2010-2015. The study results showed an opposite impact of day inventory outstanding and days of sales outstanding to profit before tax on assets; positive of current ratio to the profit before tax on assets and positive of financial leverage to profit before tax on equity. These results suggest that airlines need to rationalize supplies of aircraft spare parts inventory, increased the ability to recover cash from selling air transport products and strengthen collaborative relationships with suppliers in order to improve efficiency of working capital management, contribute to improve business efficiency.
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