EADS, parent company of European aircraft maker Airbus, expects further costs of around 1.4 billion euros and a delay of at least 6 months.
Difficulties in making the aircrafts giant turboprop propeller engines, the largest of its kind, are quoted to be responsible for an extended schedule.
Shares of the company were down 3.6 percent on Monday evening, after it was announced that an additional 1.2 billion to 1.4 billion euros will be needed for the A400M, and the operating profit forecast for 2007 would have to be revised.
The military plane has been ordered by 9 different countries, which are to receive a total of 192 planes, worth 20 billion euros. Following the delays in its military helicopter project NH90, it is the second major delay in EADS's military projects, meant to diversify the company's business.
On top of that, the company even warned that the current assessment was only made based on already known issues, excluding eventual future problems.