Continental Airlines said yesterday it was pushing back delivery of 36 narrow-body planes from Boeing as an unprecedented industry slump persists, bringing more bad news for the world's largest plane maker.

Houston-based Continental said it would defer the delivery of 36 Boeing 737 aircraft scheduled from 2005 to 2007, representing most of a $2.5 billion (€2.2 billion) order from Boeing.

In a potentially life-threatening move for another one of Boeing's product lines, Continental said it was in discussions to defer delivery of slightly larger 757s.

"We've given it all the room we can to see a glimmer of hope for an economic recovery," Continental chief executive, Mr Gordon Bethune, said. "It's not a prudent thing to continue to commit to add more capacity because we're not making any money with the airplanes we have."

The 737 is the best-selling plane in Boeing's line, aimed at short- to medium-haul flights. - (Reuters)