New York  - US air carrier Continental Airlines reported Tuesday that it continued to operate in the red in the second quarter, with the poor economy and swine flu fears hitting passenger numbers.

The Houston, Texas-based airline said it lost 213 million dollars in the quarter, compared with red-ink of 5 million dollars a year earlier.

The losses came amid a 23 per cent plunge in revenues, to 3.1 billion dollars.

Continental said that the losses came despite some easing of fuel prices. The airline now plans to slash a further 1,700 jobs from its payroll.(dpa)