We study the settling dynamics of non-Brownian prolate spheroids under steady-state sedimentation. We consider the case of moderate particle Reynolds numbers properly taking into account the hydrodynamic effects. For small volume fractions, we find an orientational transition of the spheroids, characterized by enhanced density fluctuations. Around the transition, the average settling velocity has a maximum which may even exceed the terminal velocity of a single spheroid, in accordance with experiments.Peer reviewe