I thought the conventional wisdom was downturns/ recessions hurt low cost more. Presumably the low yielding model needs volume that good times supply
It is pertinent to consider the demand elasticity. Established airlines have a better ability to raise price without too much decline in demand. LCC are demand elastic (in a relative sense) therefore their 'product' is very susceptible to changes in price. They struggle to generate yield and so rely on volume. As such given they
target price sensitive consumer, those consumers oftentimes decide at the margin( that is on price-who is cheapest?) and are affected by any change in circumstances (economically) undermines their disposable income and the LCC the model substantially.
Likely the operating margins are a bit better given the relative price of fuel, but LCC are finely balanced financially engineered entities, that are more about low wages for operating staff rather than anything new...Of course they also keep the factories open with their penchant for leased aircraft...