The European aircraft manufacturer Airbus told clients that deliveries of its A380 super jumbo jet would be delayed by six to seven months because of a production problem.
Only nine of the aircraft would be delivered in 2007, seriously affecting the financial results of the parent group, the European Aeronautic Defence and Space Company, EADS said in a statement.
EADS owns 80 percent of Airbus and BAE Systems of Britain holds 20 percent.
EADS warned that operating profit would be cut by "about 500 million euros" (625 million dollars) per year during the period 2007-2010.
"Possible contract terminations under the new timetable have not been taken into account in this estimate," it added.
Airbus said the delay was for industrial reasons only, adding that it was still on track to win certification for the aircraft and deliver the first unit at the end of 2006 to Singapore Airlines, which had expected to get two.
Commercial director John Leahy told AFP the problem lay with the manufacture and installation of wiring connections between slices of the fuselage, adding: "there will be late fees paid to clients".
"It's embarrasing, those problems should have been fixed by now," he said.
Airbus said in a statement that it was "perfectly aware" of the impact the delay would have on client airlines "eager to begin using their A380s".
EADS co-chief executives Tom Enders and Noel Forgeard said in a joint statement: "We expect Airbus management to fully deliver according to the revised schedule and if possible, even to improve (on it)".
Compared to the initial delivery target, shortfalls of five to nine aircraft deliveries were now expected in 2008 and of around five aircraft in 2009.
Airbus had initially planned to deliver 20-25 A380s in 2007, around 35 in 2008 and 45 in 2009.
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