More clouds gathered over Europe's struggling airline market yesterday, as Airbus cut its forecast for aircraft deliveries and two carriers signalled they would press the planemaker and its arch-rival Boeing for cheaper jets.

Airbus, based in Toulouse and which competes with Boeing Co in the market for large commercial airliners, said it had cut its target for 2003 deliveries to 400 planes from 450.

Owned by European aerospace giant EADS and Britain's BAE Systems, Airbus also admitted for the first time that it was discussing delivery delays with several airlines.

Carriers on both sides of the Atlantic have been affected recently by weaker economic growth.

High margin corporate travel, which accounts for up to two-thirds of airline industry revenue, has been particularly hard hit as struggling companies cramble to cut costs.

"The situation is more clear now," said an Airbus spokeswoman. "There is a softening of the market and we are aiming for 400," she said, when asked if the group was cutting its delivery goal for 2003 from 450.

The news contributed to a sharp drop in EADS shares in morning trade. . BAE Systems stock also fell.

"This is significant for EADS," said Mr Tim Bennett, an analyst at Morgan Stanley Dean Witter in London. "Airbus is the main driver of their profits."

Less than two months ago at the Paris air show, Airbus reaffirmed plans to boost annual production and deliveries from a targeted 330 this year to 450 in 2003.

German carrier Lufthansa said yesterday it would cut capacity due to slowing global growth, saying demand for intercontinental flights had fallen significantly from the previous year.

KLM Royal Dutch Airlines, which announced on Monday it would cut its winter capacity by 3 per cent, also sought to take advantage of the deteriorating environment, inviting tenders for the possible purchase of planes worth up to $5 billion.

"The airlines are clearly trying to get better prices from the manufacturers," said a London-based airline analyst.

Analysts said they had been expecting Airbus to cut back on trim its ambitious ramp-up plans following the recent stream of airline profit warnings and weak traffic figures.

While Airbus expects to deliver 330 jets this year, gradually ramping up increasing over the next few years, rival Boeing plans to ship 538 jets this year and between 510 to and 520 aircraft in 2002.

Most experts, however, estimate that long-term annual demand for jets averages around 750 - far less than the combined totals of the two manufacturers.