The shows, made famous by SeaWorld parks and featuring in the film Free Willy, have drawn crowds for years. The ruling means they could be banned.
The landmark decision follows the death of trainer Dawn Brancheau, 40.
She was dragged underwater by a five-ton bull orca in front of hundreds of spectators at SeaWorld in Orlando, Florida.
Three US Appeals Court judges said SeaWorld, which boasts 27 performing killer whales and 11 million visitors a year to its three parks in Florida, California and San Antonio, Texas, had “violated” its duties as an employer by exposing trainers to “recognised hazards”.
Dawn loved the whales. She would have been heartbroken at the prospect of orca shows being banned
A spokesman for SeaWorld said yesterday it was “seriously considering” a final legal appeal.
Until then, it said, there would still be “human interactions and performances with killer whales”.
The spokesman stressed the company would comply fully with any new safety laws.
Activists have fought to close the hugely popular orca shows since Ms Brancheau’s death in February 2010 and their crusade was given a huge boost last year by the documentary cinema film Blackfish.
It revealed how Tilikum was known to have behavioural issues and had killed two people before Ms Brancheau after being wrenched from his mother as an infant by hunters and then forced to live in unnatural conditions.
His other victims were Keltie Byrne, 20, a marine biology student, and tourist Daniel Dukes, 27.
Mr Dukes evaded the park’s security after it closed and dived into Tilikum’s tank. He was discovered, dead and naked, draped over the orca’s immense back. It was Ms Brancheau’s killing, however, that sparked international uproar and Naomi Rose, from the Animal Welfare Institute, said: “We welcome this decision. It supports our contention that, from a common sense perspective, it is simply not safe to work in close contact with an intelligent, multi-ton marine predator.”
A fellow trainer who chose to remain anonymous, said yesterday: “Dawn loved the whales, especially Tilikum, and was fully aware, and respectful, of his awesome power.
“She would have been heartbroken at the prospect of orca shows being banned but unless SeaWorld can win a final appeal, that looks like what will happen.”
Los Angeles-based media analyst Mike Raia said: “The likeliest outcome is that they will be exhibited but in a way that does not involve contact with their trainers; perhaps in some subterranean giant tank, so they can be viewed closely without danger.”
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