In this study, the performance of a rotor system supported by externally pressurized air bearing was investigated. Angular misalignment was introduced to the bearing along two perpendicular direction separately, and then both at the same time (combined). The effect of angular misalignment to the pressure distribution in the air bearing was obtained. A clearance function was introduced for misalignment conditions of the bearing, and then the air flow between the rotor and the bearing was modeled using Reynold's equation. Next this flow model was solved using Differential Transform and Finite Difference hybrid numerical solution method to obtain the pressure distribution in the bearing. The effects of the angular misalignment conditions on the load carrying capacity were also analyzed as well.