Shareholders have been losing value.

Excluding the rise in the fuel bill, the industry has actually achieved a 'normal' cyclical recovery in profitability.

There is now a case for qualified optimism about the industry's financial performance.

This past year has seen the sharp rise in fuel prices more than offset the efficiency gains and a strong revenue environment.

Returns to airlines are slowly improving but are far from allowing long-term financial sustainability.

Fuel prices remain a major risk but now appear to be on a slow downward trend as global economic growth and demand for oil slows.