I think a lot of the people on this board are too young to remember (including myself) when people just didn't get airline jobs, a lot of older pilots I have talked to remember times in the 70's and 80's during downturns when it was nearly impossible to get an airline job and nobody got to the majors before they were 40. In that respect were better off than in previous airlines recessions.
I think the other thing we need to realize (for the people that think legacy carriers are things of the past) that if oil was at 2000 prices the airlines would be making more money than they ever have. For example American is paying somewhere in the neighborhood of 1.95 a gallon for jet, southwest is paying the neighboorhood of 1.65. (Last year the difference was greater, but now some of SWA hedges are expiring) Last year American spent about 5 billion dollars on jet fuel. American spend 16% more on jet than SWA. Times 5 billion by 16% and you get 800 million dollars. Last year American lost 93 million, so were talking probably over 700 million profit last year if they AA was paying the same for fuel. I realize it is not as simple as this but it still shows what the airlines are up against.
I think the turnaround for the big carriers will come when swa is paying the same as everyone else. They will have to raise ticket prices (which they already have started) which will allow industry wide prices to rise and more closely reflect what it really costs to operate these aircraft.