Airfares may decline in 2009--not only is that good news, but it rhymes, too (sorry, I have a bit of that giddy TGIF thing going on). According to this report from Travel Weekly (free subscription required), we can expect lower oil prices and a smaller traveling public customer base to lead to as much as a 12 percent decrease in airfares. This conclusion is based on a report by AirlineForecasts.
The downside, according to the article, is that the reduced demand also likely will result in even more route cuts in 2009.
I couldn't find the report the article references, but I did find this illuminating report with AirlineForecasts' chief analyst Vaughn Cordle on Fox News.