At some point in time airlines could be a very good buy.However...

At some point in time airlines could be a very good buy.
However with the US is continuing to struggle, and running out of cash artificially to pump up the economy, the economic woes of the US could closely mirror Japans for the last 30 years. Airlines do best when the world economies are doing well. With the problems with Europe, the US, and even China has a Housing bubble, with apartments worth $400K and people only earning $10,000 per year.
A million apartments are empty in Bejing..

If things get really tough Virgin and even Qantas could struggle to survive. If and when things come good Virgin could be worth many times what it is now.

We still have tough times ahead.

The safer strategy would be to wait until the world economy starts to recover.

Still lots of downside. If they survive a big downturn they could be very cheap and would be a certain 10 bagger as world economies recover