when whilst you are saying something, you hold your the pointer and middle fingers of yoru hands up in the air curled as if to make quotation marks as if to make the thing you said sound peculiar or strange. also used as a taunt.
Martha: wow, its been six years since i have seen you, whatever happened to your (air quotes) band?
Fred: hey! we turned out some really good stuff on our first CD!
Martha: fred, your (air quotes) band was only six guys and some italian stew pots.