Its the LCCs that are in a hard place with this trend. When your ancillary revenue is similar to a traditional legacy yet you are not reaping the business traffic upfront to make up for it. Sure your costs are lower, but the costs of the ULCC are lower still.
How long will shareholders put up with that? The middle of the pack (WN/B6/AS) will have to pick a side eventually.
AS giving up on the premium transcon game it inherited from VX and keeping a sub standard front cabin.
B6 introducing basic economy, baggage fees, reduced catering.
WN staying the course, but the ULCC will force change on them eventually.
The next down turn will see the end of the LCC model I'm betting.