Empowering Airline Treasury Strategy A Comprehensive KPIFramework for Chief Treasury Officers

In an increasingly volatile global market, the strategic management of airline treasuryfunctions has emerged as a critical factor for financial stability and operational efficiency. Thispaper explores the transformative impact of adopting a Key Performance Indicator (KPI)-drivenapproach within the treasury operations of the airline industry. Through a mixed-methodsresearch design, combining qualitative insights from industry experts with quantitative analysisof financial data, the study identifies crucial KPIs across cash management, risk management,investment management, debt management, and regulatory compliance. The findingshighlight the significance of KPIs in enhancing decision-making processes, optimizing financialperformance, and aligning treasury operations with broader business objectives. Case studiesfrom leading airlines illustrate the practical application and benefits of a KPI-driven approach,demonstrating improvements in liquidity management, risk mitigation, and strategicinvestment outcomes. Comparative analysis further identifies best practices and areas forimprovement, emphasizing the need for dynamic KPI management and technologicalintegration. The study contributes to both academic and practical understandings of strategicfinancial management, offering actionable insights for Chief Treasury Officers (CTOs) andtreasury teams aiming to navigate the complexities of the airline industry effectively. It alsosuggests directions for future research, including the impact of technological advancementsand global economic trends on treasury strategies.

Keywords:

Airline Treasury Management , Key Performance Indicators , FinancialStrategy , Operational Efficiency , Risk Management