UPDATE 2-Six Flags posts quarterly loss

* Q1 loss $1.50/shr

* Mexico closure to cut revenue by around $3 mln

* Shares down 16.7 percent

(Adds analyst, company comment)

By Deepa Seetharaman

NEW YORK, May 8 (Reuters) - Troubled theme park operator Six Flags Inc SIXF.OB, which has offered to exchange notes for stock in hopes of relieving its debt obligations, said on Friday its quarterly loss narrowed as it cut expenses.

But the company said sponsorship revenues were running weaker and added that an eight-day closure of its Mexico park tied to the H1N1 flu would also hit overall revenue.

"This year is going to be tougher than last year," Christopher Snow, a CreditSights analyst, said in an email.

He added that because Six Flags was experiencing higher labor and energy costs and having trouble maintaining sponsorship dollars from last year, "they're going to have to do better on attendance and spending just to get to the same level of cash flow."