They have an advantage not shared by Ruinair and to a lesser extent easyjet. Passengers actually like EI. Similar to the way that some people actually like the sort of service offered by BA. People are actually prepared to pay a (small) premium for a little bit less hassle and grief. Strange but true.
I would also like to think that some passengers would prefer to fly with an airline that treated their employees with some respect and dignity. Sadly I'm probably wrong on that one.
Anyone i know who has booked any flight recently has booked it based on cost..planning a wedding in Toulouse in August and nearly everyone is flying Ryanair to Carcassone with groups mini bussing it up to Toulouse.. Was still cheaper than using EI for most people.
I dont know a single solitary person who would book EI because they treat their staff nicer .
People liking EI will only carry them so far and i know a few people who have had just as crap experiences with EI as any other airline. Cost is a big factor for anyone travelling right now and whether the extra charges will make it more expensive in the long run...who knows but the ticket price, people percieved to be cheaper with FR and went with them