Just checked the last quarterly report from easyJet, and a line stood out:
▪ Ancillaries continue to grow with yield increasing 20% YoY (+85% vs Q1 FY19)
So quite apparently ancillary revenues are actually improving at some carriers. But as far as i know nearly all of them switched to a scheme which requires you to pay extra for a cabin trolley, which of course increases ancillary revenues. And yes, that does include the likes of Lufthansa as well, so it is not limited to low cost carriers. Especially for european flights there is no real difference anyway, except that the legacy carriers require connections at hubs, but usually their procedures for that are working reasonably well.
Apart from that, all airlines see a hugely increased demand, and quite often cannot meet that with increased supply for whatever reasons, like for example deferred delivery slots during the pandemic for example, ability to hire staff which is especially in the UK extremely bad. And of course demand outpacing supply leads to increased prices, in effect we do see normal market practices at work. And yes, as someone who has to commute a route that is mostly not served by the carrier i work for i am hit by the same problem.