How to digitally stabilize FPV video

Hi there everybody, 

Would it be possible to electronically/digitally stabilize live feed video coming from a camera on a fixed wing UAV? I'm planning on building a turret gimbal with 2 axes of motion - pan and tilt, but it is not going to be able to get rid of the jerking motion of the UAV in turbulent air like a brushless gimbal. 

I'm planning on using an H1177 fpv camera (or similar) and a flir vue. How would one stabilize the live feed? - Or is it even possible? what components and software would I need to consider using? 

The main reason for this is to make a gimbal small enough to fit the two cameras while simultaneously being able to retract into a skywalker revolution fuselage  with a mechanism the same as the M-2D gimbal (http://www.x20.org/m2-d-stabilized-eo-ir-flir-uav-flir-thermal-camera-gimbal/

Any help would be greatly appreciated! 

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