Lets say 20% of people booking through ryanair and paying £30 for a flight go for their "upselling" (which is deliberatly designed to get more people to add it). That makes ryanair £50 each. That pushes the revenue per customer upto £40.
Lets say the cost is £35, and thus ryanair makes £5 profit per passenger.
Now lets say someone else comes along as sells the ryanair flight for £30 and has their own "upselling": "Click here to not avoid missing out on our great protection package" etc. Ryanair now is making a £5 loss on each ticket sold, and the reseller is making it instead.