Two dead, one missing in US balloon crash

Searchers have recovered the remains of two of three occupants of a hot air balloon that went up in flames after hitting a power line in the US state of Virginia.

Another is missing in the accident, which occurred late Friday as the balloon was making its descent in a pre-designated field, said Corrine Geller, spokeswoman for the Virginia state police.

"We spent all night searching for the wreckage of the basket, the balloon," she told a news conference on Saturday.

"It was just before midnight that we were able to locate one of the occupants."

"At this time, we are still searching for the balloon as well as the wreckage sites of the basket and the balloon itself," she said.

Searchers located a "debris site" where they found items that would have been in the balloon, she added.

Witnesses watched as the balloon caught fire in the evening sky after hitting a power line as it was coming down to earth, she said.

Nancy Johnson, a bystander who saw the incident, said the crash occurred very quickly.

"One minute the balloons were hovering in (the field) behind Event Park, the next everyone is pointing at the sky," Ms Johnson told the AP in an email.

"The crowd went very silent in shock. Very sad night."

The pilot, who was seen struggling to manage the situation and extinguish the fire, opened up the top of the balloon so it would not rise with the heat.

"The witnesses heard an explosion and after that, the basket and the balloon actually separated," Geller said.