Air journal bearings are generally employed in the ultra-high-speed machinery and robotics because of their high values of stiffness and damping coefficients. The current work deals with the numerical analysis of misaligned two-lobe air journal bearings. By using the finite element formulation, nonlinear Reynolds equation for compressible air as a lubricant has been solved for computing the characteristics of misaligned air bearing. The coefficients for stiffness and damping of film of air have been computed for misaligned two-lobe air journal bearing. The effect of misalignment on these coefficients has been found significant. Analytically calculated results also show that the misalignment in air bearing significantly drops its air-film thickness. However, the misalignment increases the air bearing stability and critical speed of bearing.