It’s about time.

Then again, there is no telling how long the lull will last.

We have had a slew of conflicting influences this week on the oil markets.

But when everything was put in the Vitamix today, and swirled around, the markets decided that perhaps oil has finally reached a point where lessening demand is starting to have an effect.

The price of crude closed down $4.41 today, ending at 126.62.

Woo hoo.

Where are those sparklers and the Twinkies?

Bloomberg reports this morning that trading in shares of Silverjet have been suspended in London because the airline has yet to receive a promised $5 million investment.

The airline said today in a statement that it had asked for the money as part of a loan agreement from Viceroy Holdings LLC, a U.A.E.-based fund. But the airline said that it has yet to receive all of the money. Shares were suspended from trading on the London Stock Exchange’s Alternative Investment Market at the request of the Luton, England-based airline.

In the statement, the airline said, “Silverjet’s working-capital reserves are limited and advances under the loan facility are required as a matter of urgency,” the carrier said. “Silverjet continues discussions with other parties, which have confirmed an interest in investing in the company.”

Uh-huh.

Technorati Tags: airline stocks, airlines, Silverjet

Or would that be a “smudge”?

We got a small bit of relief on the energy price front today, but not much.

Crude closed at 130.81 for the day, but jet fuel prices pretty much stayed the same, with the average closing price for New York Jet, Gulf Coast Jet, Mid-Continent, and West Coast Jet coming in at $4.09/gallon.

For the day, shares of ExpressJet posted the biggest loss for the day, as they dropped back a whopping 41%, closing at 1.61. Another day of decline for the airline — after it said Wednesday it was cutting its branded flights by 30%.

Shares of Mesa Air Group didn’t have a good day either, as the airline was forced to talk about its dwindling cash situation and potential revenue shortfall as a result of the loss of the Delta Air Lines/Freedom Air contract today in SEC filings. Shares here dropped back 16%, closing at 48 cents after the airline’s discussion of a potential bankruptcy filling. With the equity in this stock already shot for the most part, one has to wonder why the airline has not already filed for bankruptcy protection.

Republic didn’t have a good day either, as shares here were down 12%, ending the day at 12.45.

SkyWest was the one regional that pretty much held down the fort, as shares here were only down 1% on the day, closing at 15.48.

As for big Wednesday loser AMR, parent of American Airlines, the stock posted a small recovery today — but nothing to write home about. The shares recovered 5%, closing the day at 6.56, after its 24% jump off the cliff on Wednesday.

Things didn’t get much better for airline stocks after hours as S&P put the ratings of nine U.S. airlines on CreditWatch negative.

“The dramatic increase in jet fuel prices has increased airline costs significantly over the past two months, and, if sustained, could threaten their liquidity and financial profiles,” said Standard & Poor’s credit analyst Philip Baggaley in a statement.

S&P placed the following airlines on CreditWatch: AirTran Holdings Inc.; Alaska Air Group Inc., the parent of Alaska Airlines: AMR Corp., parent of American Airlines; Continental Airlines Inc.; JetBlue Airways Corp.; Southwest Airlines Co.; UAL Corp., which owns United Air Lines: and US Airways Group Inc., which owns both US Airways and America West Airlines.



Southwest Airlines, the most heavily-hedged U.S. airline, and Alaska Air Group, the second-best fuel hedged carrier, are in a “somewhat better” position than others, according to S&P.

Northwest Airlines Corp. and its Northwest Airlines unit are already on already on CreditWatch due to the proposed merger with Delta Air Lines Inc., which is currently on positive CreditWatch.

Technorati Tags: airline stocks, airlines, AirTran , Alaska Airlines, American Eagle, AMR, Continental Airlines, debt ratings, Delta Air Lines, ExpressJet, jetBlue, Northwest Airlines, regional airlines, Republic Airways, SkyWest, Southwest Airlines, United Airlines, US Airways

Herb sits down with CNBC after yesterday’s annual meeting talking high oil prices, airline bankruptcies, employee productivity, and the lack of clear understanding on Capitol Hill about the problems affecting the U.S. airline industry.

Ticker: (NYSE:LUV)

Technorati Tags: airlines, Herb Kelleher, Southwest Airlines

Or so said UBS analyst Kevin Crissey in a research note today.

“The legacy airlines have grown passenger revenue 7% so far this year. Although this is a good result by historical standards during a period of weak economic growth, it is not remotely close to what’s needed (think 4x this amount). Spot gulf coast jet fuel prices are up an incredible 85% y/y. The industry needs to shrink in a huge hurry to be able to raise fares and reduce fuel burn and other expenses.

It is difficult to make a compelling (or even decent) case to buy any US airline stock right now. The status quo in terms of fuel prices likely results in multiple bankruptcies. We continue to have no Buy recommendations and have Sells on AMR and JBLU.”

Just food for thought. This note was published this morning — BEFORE oil picked up more than $4 on the day, setting a new all-time high of $133.17 a barrel.

Jet fuel? Another new record, and this one is a big one.

Jet fuel closed today at over $4 a gallon. $4.09 a gallon to be exact.

Oil prices bounced around a bit today, but when all the shouting was done, crude oil futures closed at 126.29, up $2.17 on the day.

Spot price for New York Jet Fuel closed at $3.88/gallon.