Government Watchdog Warns Against Overregulation that Undermines Air Travel Competition

Wednesday House hearing to probe air travel economy and government regulations

Arlington, VA (June 23, 2026) — Tomorrow, the House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust will hold a hearing on the state of U.S. airline competition. Ahead of the congressional review, the Center for Transportation Policy (CTP) is urging lawmakers to recognize how government manipulation of the free market undermines consumer choice. 

The hearing comes on the heels of the closure of Spirit Airlines, which was blocked from merging with JetBlue under the Biden administration. The denial of the deal is credited with the budget carrier’s ultimate demise. 

“Mergers are not inherently anti-competitive and, in many cases, are a useful free-market mechanism that strengthens competition and expands consumer options in the long run,” said CTP Executive Director Jackson Shedelbower. “The failed Spirit Airlines–JetBlue deal demonstrates the risks of excessive government intervention. Had the Biden administration not opposed the transaction, travelers today could have benefited from a stronger low-cost competitor. This should serve as a cautionary tale for lawmakers to resist future temptations to micromanage the travel economy.”

BACKGROUND ON AIR TRAVEL MARKETPLACE:

The U.S. airline industry remains a competitive marketplace, with more than 20 carriers competing for passengers, routes, and gate access. Following Spirit Airlines’ shutdown, other low-cost airlines moved quickly to expand service and capture demand—demonstrating the market’s adaptability when allowed to operate freely. 

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