"Some airlines will never recover from this and I think we might have seen the end of low cost air fares, at least in the short term".
That already seems to be the case. Virgin have been absolutely creaming it at MAN since TCXs demise, there have been some eye watering prices over Christmas like £7k in economy to BGI { £810 from LGW on BA}. Even Jet2 have gone from the usual £275 quid return to over £400.
I can only see that these will rise again when the survivors have a market clamouring for a break.
zfw