Continental Airlines, the number five US carrier, has said it expects to make a "significant loss" this year.

The airline said it is currently burning through $1.5m a day.

The current US domestic airline environment is the worst in our history Continental statement

If things do not get any better, Continental said it would not be able to support itself beyond 2003.

"The current US domestic airline environment is the worst in our history," Continental said.

"Business traffic in most markets continues to be weak, and carriers continue to offer reduced fares to attract passengers."

Plane orders

By the end of last year, Continental was $5.7bn in debt.

The airline has outstanding orders for 67 jetliners from Boeing, valued at $2.5bn and slated for delivery through 2008.

Four brand new Boeing planes are due in the fourth quarter of 2003.

Continental posted a $451m loss last year.

The company said it was unable to forecast when business travel or ticket prices might pick up.

The American airline industry has been struggling since the terrorist attacks on September 11 triggered a global slowdown in travel.

United Airlines followed US Airways into bankruptcy last year, while American Airlines, the world's largest air carrier, is fighting to stay afloat by cutting as much as $4bn in annual costs.