We’re not saying things are hunky-dory,” said John Heimlich, chief economist for the Air Transport Association, the trade group representing U.S. airlines. “All we’re saying is that some of the indicators we look at and some of the recent trends are promising, and that’s the first time I’ve used that word in a long time.”

With these words, we may see the airlines pull out of their free fall. The industry has been pummeled since September 11th, 2001 with fear of terrorism, high fuel prices, and unprecedented competition.

Responding by cutting back on flights, lowering labor costs, and raising prices, the major airlines are starting to get out from under the billions of losses that they have been facing. Adjusting to the new playing field that the low cost airlines such as Southwest, JetBlue, and Airtran have created has been hard for the majors, as seen by almost all of them entering into bankruptcy.

But hopefully, blue skys will be ahead for the airlines.