US President George Bush warned today that the foiled plot in Britain to blow up jetliners over the Atlantic means the United States will be fighting terrorists for years to come.

Residents began trickling back today as part of a plan by the mayor to reopen New Orleans one postal code at a time, despite repeated warnings from the top federal official on the scene – and US President George Bush himself – that the city is not ready.

Travellers by air, land and sea are facing a massive security alert throughout the holiday period as the United States steels itself against a possible terrorist attack that US government officials say al-Qaida has signalled could be imminent.