I think it is because the LoCo carriers have forced the prices down on the traditional carriers. The only way the "Economy" carriers can compete is by giving value added services. An example of this is I regularly fly from London to places in Europe. My "routes" are served by LoCos and BA. The price difference between the LoCos and BA is typically £30 on a trip. I consider it £30 well spent for on-line check in, replacement planes if one goes tech, a couple of G&T's in the air, free newspapers and a meal. Probably doesn't cost BA £30 to offer these services, but it ensures they get my money every time....
LoCos have done a brilliant job in adding competion into the European market. I pay a LOT less now to travel in Europe than I did 7 years ago - even with the fuel surcharges. People are complaining that the LoCos aren't cheap anymore - this is nonsence all they have done is forceably created competition. They aren't doing to badly either - EasyJet reported £60m profit?
You pay your money, you take your choice (or chances).