February 8, 2018 / 8:29 AM / a year ago

Airbus shares fall after warning on A400M provisions

An Airbus logo is pictured during the delivery of the new Airbus A380 aircraft to Singapore Airlines at the French headquarters of aircraft company Airbus in Colomiers near Toulouse, France, December 13, 2017. REUTERS/Regis Duvignau

PARIS (Reuters) - Shares in European planemaker Airbus fell on Thursday after the company said it was considering increasing a provision for losses on its contract for the troubled A400M military transport plane.

Airbus shares were down around 1 percent in early trade, making it one of the worst performers on France’s benchmark CAC-40 index, which was down 0.3 percent.

Late on Wednesday, Airbus issued a warning over the A400M plane program after its European NATO buyers agreed to negotiate a new delivery schedule and contract terms.

The A400M - ordered by Belgium, Britain, France, Germany, Luxembourg, Spain and Turkey - has been hit by engine gearbox problems and delays in fitting parachuting capacity and advanced defenses.

Reporting by Sudip Kar-Gupta; editing by Jason Neely

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