The names of the pilot and two couples who died after a hot air balloon they were rising in struck a power line and crashed onto a busy street in Albuquerque, New Mexico, have been named.

New Mexico State Police identified the pilot as 62-year-old Nicholas Meleski and the four passengers as Susan Montoya, 65, John Montoya, 61, Mary Martinez, 59, and Martin Martinez, 62. All were residents of Albuquerque.

State police said Mr Montoya died at a hospital from his injuries, while the other victims were declared dead at the crash scene on Saturday.

Witnesses told authorities that the balloon descended towards the ground at around 7.30am and struck an overhead power line.

The gondola detached from the envelope and fell about 100 feet (30 metres) and crashed in the middle of a busy city street before catching fire, authorities said.

The envelope of the balloon floated away, eventually landing on a residential rooftop.

The National Transportation Safety Board (NTSB) and Federal Aviation Administration will be investigating the cause of the crash.

The NTSB sent two investigators to the scene and will look into the pilot, the balloon itself and the operating environment, according to agency spokesman Peter Knudson.

“This is a tragedy that is uniquely felt and hits uniquely hard at home here in Albuquerque and in the ballooning community,” Albuquerque mayor Tim Keller said.

According to an NTSB database, there have been 12 fatal hot air ballooning accidents in the US since 2008, with two of those occurring in Rio Rancho just outside Albuquerque, a mecca for the activity.

The city hosts a nine-day Balloon Festival in October that draws hundreds of thousands of spectators and pilots from around the world. It is one of the most photographed events globally.