I have friends at Delta, Fedex and Southwest who are quite happy and they are making pretty good money (especially the Fedex pilots). Not sure the situation is as dire as you portray it.
Asides Delta, Fedex and Southwest are ahead ONLY because of events after 9/11. Keep in mind before 9/11, in the 80s and 90s, only a reject went to Fedex or Southwest, those that couldn't make the cut at the higher paying legacies. Especially Southwest!