VIDEO: Three missing after hot-air balloon catches fire

Three people are reported to be missing after a hot-air balloon caught fire and crashed in the US.

News outlets quoted Virginia State Police spokeswoman Corinne Geller as saying that authorities received a report of the crash yesterday evening in Caroline County.

Witnesses say the balloon hit power lines.

Ms Geller said a pilot and two passengers were believed to be in the balloon’s gondola, and that according to witness accounts the gondola caught fire. She said police had not yet found any wreckage.

She added police would search for the balloon throughout the night, initially on the ground and possibly later by air if weather conditions improved. Severe storms were expected in the area.

The light from a small search plane shines overhead beyond a barn in rural Caroline County in the search for the missing hot air balloon. Pictures: AP