Customs officials confirmed that 42 people had survived the brutal accident but added that "tragically, initial reports are that 27 bodies have also been recovered", as the search continued into the night.

Medics have warned there could be as many as 50 deaths among the group, thought to be from Iraq and Iran.

Christmas Island residents watched aghast from the cliffs as the tragedy unfolded below, helpless to assist those dashed against the rocks and debris as bodies floated in the churning sea and rescuers tried to save the living.

"There were children in the water. There was one very small child in a life jacket floating face down for a very long time... clearly dead," said local shop owner Simon Prince.

AFP