Although there is no doubt that the war has put some people off flying who will return after the war (although something else is likely to come along to frighten them off again in the near future). I do not think there will be a general up turn in the airline industry until the airlines change their strategy.
Currently all airlines are lowering costs, cutting standards, increasing prices and gernally upsetting customers and staff. I think ailines, yes they need to be more cost effective but the most important thing is to encourage passengers back by offering a better service that makes flying an enjoyable experience again and not just a hastle.