Federal judge blocks JetBlue-Spirit $3.8 billion deal

A federal judge on Tuesday blocked JetBlue Airways Corp.’s proposed $3.8 billion acquisition of Spirit Airlines Inc., agreeing with the Justice Department’s assertion that the deal would eliminate a competitor important to price-conscious travelers. The decision sent Spirit’s SAVE, -50.76% stock down 55%, while shares of JetBlue JBLU, +3.89% rose 7%. Removing Spirit as a rival would free JetBlue to raise prices by as much as 30%, Justice officials argued. JetBlue is the country’s sixth-largest carrier, and Spirit ranks seventh. Antitrust enforcers focused during a 17-day trial on how the deal would affect head-to-head competition…