The news: Budget airline Wizz Air is looking to break into the US market despite myriad challenges facing low-cost carriers.

The UK subsidiary of the Hungarian airline applied to the US Department of Transportation to operate transatlantic flights between the UK and US, per Bloomberg. While Wizz did not outline potential destinations, it indicated it wants to begin operations as soon as possible.

The challenges: Should Wizz win approval, it will have its work cut out. Budget airlines have slumped as economic uncertainty, rising costs, and stiff competition complicate their ability to operate. That pressure is fueling consolidation as well as bankruptcies, as smaller players seek to stay alive and compete with heavyweights like Delta and United.

• Allegiant and Sun Country announced a merger in early January, citing network expansion, improved loyalty benefits, and cost efficiencies.
• Spirit Airlines is in talks to be acquired by investment firm Castlelake after a previous takeover offer from Frontier was deemed unsuitable, per Reuters.

Where Wizz has the advantage over US rivals is its extensive selection of routes and destinations, which could entice travelers looking to travel internationally on a budget. However, the no-frills experience and ancillary fees could limit its appeal, especially when compared with the basic experience of flying on a more premium airline like Delta.

The implications: Low-cost carriers’ struggles show that airlines—and businesses in general—can no longer simply rely on low prices to get customers to open their wallets. With costs rising and uncertainty dampening sentiment, companies need to offer consumers extra enticements, such as improved service, stronger loyalty benefits, and enhanced convenience, to stay operational.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.