Captain Smithy ...
You have hit upon the most widespread public misconception in the airline industry. FlyBe is indeed a 'Low Cost Carrier' [LCC], because this term applies strictly to the 'costs' element of the corporate balance sheet which is kept as low as possible. The term 'low cost' applied in this sense does NOT refer to the fare structure offered by an airline to its customers. Operating with a low cost base offers a company the flexibility to sustain a low fares policy should it wish to do so, but there is no obligation on the airline to make cheap tickets a priority. In most cases, LCC's will use established yield management techniques to sell seats in accordance with profit maximisation objectives.
When traveling with a 'Low Cost Carrier', what the customer actually encounters is a 'No Frills' product priced at a level which maximises the company bottom line. Obviously, LCC's are more than delighted if their customers presume that they will always offer cheaper fares than their competitors. This popular misconception pushes additional business their way. It is amazing how many travellers book flights without checking tariffs offered by all carriers on a route. Legacy carriers in particular are often overlooked.