The Stratospheric Observatory for Infrared Astronomy (SOFIA) has recently concluded a set of engineering flights for Observatory performance evaluation. These in-flight opportunities are viewed as a first comprehensive assessment of the Observatorys performance and are used to guide future development activities, as well as to identify additional Observatory upgrades. Pointing stability was evaluated, including the image motion due to rigid-body and flexible-body telescope modes as well as possible aero-optical image motion. We report on recent improvements in pointing stability by using an active mass damper system installed on the telescope. Measurements and characterization of the shear layer and cavity seeing, as well as image quality evaluation as a function of wavelength have also been performed. Additional tests targeted basic Observatory capabilities and requirements, including pointing accuracy, chopper evaluation and imager sensitivity. This paper reports on the data collected during these flights and presents current SOFIA Observatory performance and characterization.