Allegiant Air and Frontier CEOs set to testify on airline competition before Senate

Airlines for America has stated: "Robust competition has led to historically low fares, a wide availability of options and quality customer service which has resulted in record high demand."

Industry groups have noted that an outdated and understaffed air traffic control system contributed significantly to operational disruptions over the past summer. Both legacy carriers and low-cost operators like Frontier plan to discuss these operational hurdles during the hearing.

Analysts suggest that investors should monitor policy risks emerging from this hearing. There is speculation about potential limits on ancillary fees—extra charges that have been a key revenue source for ultra-low-cost carriers—and possible changes in gate access at crowded airports. Regulatory resistance to mergers or alliances may also challenge airlines seeking growth through consolidation.

Discussions are likely to include proposals for modernizing air traffic control systems and considerations around market positioning for Allegiant and Frontier after Spirit's withdrawal from the market. Legacy airlines could face new requirements related to transparency, family seating policies, schedule flexibility, slot reforms, and efforts to prevent targeted consolidation.

The hearing comes amid passenger concerns about how Spirit's exit could affect travel options and fares. Full-service airlines are aiming to attract more premium passengers while loyalty programs—sometimes criticized as anti-competitive—may also come under scrutiny.

Safety issues related to air traffic control have gained attention following an accident earlier this year in Washington, D.C., raising further questions expected to be addressed at the session.