New York - Continental Airlines, the fourth largest US carrier, said Thursday it lost 263 million dollars in the third quarter amid higher costs for jet fuel that have pounded airlines.

The loss comes after earnings of 241 million dollars in the year- earlier period, the Houston-based company said. Revenue rose 9 per cent to 4.2 billion dollars, but could not overcome the company's 736 million dollar fuel bill. It said it would delay the planned purchase of new aircraft.

On Wednesday, the largest US carrier American Airlines and number- three Delta reported losses. They have been battered by fuel costs and discount carriers. However, discounter Southwest Airlines said Thursday it had its first losses in 17 years, amounting to 120 million dollars. (dpa)