PARIS, Aug 7 (Reuters) - European plane maker Airbus said on Tuesday it had cut its target for deliveries in 2003 to 400 from a previous goal of 450 as a result of softening airline demand for large aircraft.

The Toulouse-based group, which is owned by European aerospace giant EADS and Britain’s BAE Systems Plc, also said that it was discussing delivery delays with a number of airlines.

"The situation is more clear now. There is a softening of the market and we are aiming for 400," said a spokeswoman for Airbus, when asked by Reuters whether the group was cutting its delivery goal.

The news contributed to a sharp drop in EADS shares in morning trade. At 0800 GMT, EADS stock was down 3.67 percent at 21.81 euros. BAE Systems stock was down 1.86 percent at 370 pence.

In late June at the Paris air show, Airbus commercial director John Leahy had told Reuters in an interview that the group planned to increase production and deliveries to 450 planes in 2003.

"There is no doubt we are in a down cycle and we have to keep that in mind, but for now our plan is to increase production to 450 planes in 2003," Leahy said at the time.

Since June, economic weakness in the United States and Europe has continued to hit airline profitability.

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

Airbus said it was discussing delivery delays with several airlines as a result of the soft market.

"We are discussing some delays but so far we are just seeing adjustments within a specific year, so it does not change total deliveries," the spokeswoman said.

Analysts said they had been expecting the move following a stream of airline profit warnings and weak traffic figures on both sides of the Atlantic.

"If you look at recent results from a number of airlines in Europe and the United States, it is not surprising that they would be looking to defer capital expenditure," said Will Mackie of Commerzbank.