Alaska-Hawaiian Deal Doubts Mount After JetBlue-Spirit Blocked

Traders are increasingly skeptical whether Alaska Air Group Inc.’s proposed $1.9 billion acquisition of Hawaiian Holdings Inc. will go through, after a judge blocked the merger between JetBlue Airways Corp. and Spirit Airlines Inc. on antitrust grounds.

Hawaiian shares dropped as much as 3.1% to $13.06 on Wednesday, after a nearly 2% decline Tuesday following the US judge’s ruling. The stock reached almost $5, or roughly 28%, below Alaska’s $18-per-share cash offer — the widest gap since the tie-up was announced last month. The market is pricing in around a 65% chance of the transaction closing successfully, compared to ...