United Airlines, the second largest carrier in the US, has, amid poor traffic and a round of fare cutting, revealed an $889m (�573m) loss.

The loss, run up in the July to September quarter, capped a week of poor results from the major US airlines, with combined net losses of this year total almost �2bn.

United Airlines' parent company UAL had warned earlier this year that it could face bankruptcy.

"There's no question that United continues to suffer from the financial challenges that plague our entire industry," said UAL chairman and chief executive officer Glenn Tilton.

The company said it will file an updated business recovery plan with the Air Transportation Stabilization Board next week.

Troubled skies

The largest US carrier, American Airlines, reported the biggest net loss of $924m which its chief executive Donald Carty described as "terrible".

Other losses included $46m at Northwest Airlines and $37m at Continental Airlines, while US Airways filed for bankruptcy.

Delta Air Lines announced it would cut up to a further 8,000 jobs as it reported a $326m loss.

Southwest, the seventh largest, fared better than its big rivals because of its low-cost structure and reported a $75m profit in the quarter.

Scared travellers

Airline stocks have plummeted since 11 September last year as demand for air travel plummeted.

UAL's shares alone lost 81% of their value in the third quarter.

The top eight US carriers reported losses of $7.5bn last year, despite a $5bn aid package from the government after 11 September.

A war against Iraq could cause further trouble for the industry if travellers once again chose to stay away.