Fire and Rescue NSW was called to the airport at Albion Park Rail around 3.10am yesterday and found the brick and iron building well alight.

Fire crews from Albion Park, Wollongong, Coledale, Shellharbour and Corrimal battled the blaze for two hours. Of particular concern was gas bottles attached to the building.

The fire was declared under control about 5.30am.

But the interior of the building had been destroyed.

Yesterday afternoon NSW Police with Fire and Rescue NSW undertook a scientific examination of the building to identify the cause of the fire.

Mark and Kerry Bright have operated The Aviator Lounge for the past eight years.

Mr Bright said the couple had put everything they had into the business since taking over the premises in early 2005.

"We are devastated - what do you do?" Mr Bright said.

"The restaurant is gone ... there is a council office upstairs, I don't know if that survived.

"Where we go from here we just don't know."

Mrs Bright said the couple were devastated, not just for themselves but also for the 13 staff they employed at the restaurant and cafe.

The Shellharbour City Council-owned terminal building opened in 1993 and has had various occupants.

It was designed as a passenger terminal that included a conference facility with full catering amenities.

A Shellharbour Council spokeswoman said that once all the information had been received, the council would make an informed decision about the building's future.