The airline industry is undergoing significant transformation driven by rapid technological advancements, evolving market demands, and increasing competitive pressures. This study examines the strategic and transformational role of Key Performance Indicators (KPIs) in the airline sector, focusing on their impact on strategic planning, operational efficiency, digital transformation, and customer experience. By integrating both qualitative and quantitative research methods, including structured interviews with industry experts and detailed case studies, the research identifies critical KPIs that enhance various aspects of airline management. Key findings highlight the importance of KPIs such as ontime performance, fuel efficiency, and customer satisfaction scores in driving operational and strategic success. The study also underscores the need for region-specific KPI frameworks to address unique market and regulatory environments, particularly in emerging markets like Iran. Future research directions include developing integrated KPI models adaptable to different market conditions and exploring the long-term impacts of strategic KPIs. This comprehensive approach to KPI management is essential for achieving sustainable growth and maintaining a competitive edge in the rapidly evolving airline industry.