The problem of the industry is neighter the "low cost" nor the low costs
but the over capacity. As long as we have too many seats or not enough passengers, there will be a price war. There are too many airlines, and as soon as those are out who cannot compete, the fares will rise again.
I am as sorry as you are, but I guess that most of the "classic" airlines will not survive, because their structures and business plans are not as competitive as the others. At a certain level, low cost carriers will tie together, forming huge networks, starting long haul routes and will make the big carriers obsolete.