Autoencoder-based reduced-order modeling has recently attracted significant attention, owing to the ability to capture underlying nonlinear features. However, its uninterpretable latent variables (LVs) severely undermine the applicability to various physical problems. This study proposes physics-aware reduced-order modeling using a $\beta$-variational autoencoder to address this issue. The presented approach can quantify the rank and independence of LVs, which is validated both quantitatively and qualitatively using various techniques. Accordingly, LVs containing interpretable physical features were successfully identified. It was also verified that these "physics-aware" LVs correspond to the physical parameters that are the generating factors of the dataset, i.e., the Mach number and angle of attack in this study. Moreover, the effects of these physics-aware LVs on the accuracy of reduced-order modeling were investigated, which verified the potential of this method to alleviate the computational cost of the offline stage by excluding physics-unaware LVs.