Originally Posted by
eponymous_coward
You don't think that losing critical masses of Y pax to LCC competition makes a difference to an airline's operations?
It does make a difference. The post-2000 history of financial troubles for airlines that are or were domiciled in Europe, Asia and Latin America are testimony to what you noted. It's also a factor in the US, where the US legacy majors with TATL and TPAC service have surrendered domestic market-share to LCCs of sorts.