I think some of the end games mooted in this thread are a bit OTT. I am fairly certain that confidence in flying will return pretty quickly. Right now it is very easy for people to think of a short-termist armageddon, but airlines do look at the longer term picture. People won't just stop travelling, especially with the cost base lowered even further. That said, clearly it'll take time to get up and running to full speed. In China, already you're seeing domestic traffic back up to 90% of previous levels so there's a glimmer of hope there already.
It's inevitable that some of those in the unfortunate position to be out of work right now (myself included) will not be asked back. In Europe we're seeing many airlines "not letting a good crisis go to waste", but it has been proven time and time again that the aviation industry is immensely resilient.