It doesn't have to cost that much money - how much money does it cost to raise a smile for instance, or show a bit of compassion once in a while?
I think this needs to be a bit of short term pain for long term gain; there's a reason why Southwest Airlines have been profitable for so long.
The foundations built by Ryanair, in my opinion, are unstable and unsustainable. Although the biggest competitive force is price, you cannot continue to antagonise your customers and staff. You cannot afford to put passengers off because of reputation - that will cost you money.