Both Rolls-Royce Holdings PLC (LSE:RR.) and Melrose Industries PLC (LSE:MRO, OTC:MLSPF) shed around 4% after key client Airbus Group (EPA:AIR) cut profit forecasts due to a shortage of parts for its A320neo jets.
Europe's largest aerospace company said deliveries would be lower, due to the delay to production of the new jets.
A €900 million write-down was also taken for in its troubled space division, with bosses claiming a review is leading it to rethink its operations in the channel.
Shares in the French-listed Airbus sunk more than 11% in reaction to the unscheduled update.
It now predicts underlying operating income will reach €5.5 billion for the year, down from earlier forecasts of between €6.5 billion and €7 billion.
Delivery estimates were tweaked, with 770 aircraft set to be delivered this year, down from 800, while the target to produce an A320neo jet every month has been moved backwards from 2026 to 2027.
Airbus chief executive, Guillaume Faury, said: “We are facing headwinds right now; we have to bite the bullet.”