Yeah; low cost carriers are like IKEA or Walmart or (old) Amazon strategically, they deliver a known quantity at a competitive price and shave their margin out of the cost side rather than growing it on the revenue side. But they are also often low-cost for the customers, particularly the more notorious examples (e.g. Ryanair). Companies whose profitability comes from penny-pinching usually fit best with customers who are themselves penny-pinching.

(Oddly, it occurs to me that European companies do a really good job of settling in the niche of "penny-pinching to the point of being kind of terrible, but such an amazing bargain you can't complain"--IKEA, Ryanair, Aldi, Lidl. Walmart felt bad about being terrible and tried to get a little nicer to compete with Target; Amazon felt bad about being cheap and terrible and decided to chase a membership model and set up a cloud computing business on the side. Maybe it's because America has a deep inborn cultural fiction of not having social classes and companies feel embarrassed about obviously not catering to the quintessential middle class American family?)