JetBlue-Spirit Deal Collapse Signals End of Airline Merger Era

A federal judge’s ruling to block JetBlue Airways Corp.’s $3.8 billion acquisition of Spirit Airlines Inc. signals difficulty for new airline deals and underscores the end to an era of rampant airline consolidation.

Judge William Young of the US District Court for the District of Massachusetts this week ruled against the deal between JetBlue and Spirit, agreeing with the Department of Justice that the merger would hurt low-cost airline consumers and cause anticompetitive effects, as the two airlines currently compete head-to-head on multiple routes.

The ruling’s focus on the merger’s anticompetitive effects for at least some consumers signals antitrust ...