* Cuts CSeries delivery forecast to seven from 15 aircraft
* Says FY revenue likely at low end of range
* Shares in Bombardier down 5.2 percent
* Lufthansa's Swiss to take fewer deliveries this year (Adds analyst comment, shares, Lufthansa response, Airbus data)
By Allison Lampert
MONTREAL, Sept 6 (Reuters) - Bombardier Inc BBDb.TO BDRBF.PK sliced in half the 2016 delivery forecast for its CSeries aircraft on Tuesday, and said it expected full-year revenue to be at the lower end of its previously announced range.
The setback is the latest for the CSeries program, which took years to get off the ground and has been hit by production delays and cost overruns, causing the Montreal-based plane and train maker to agree to a C$1 billion ($774 million) investment from the Quebec government. The company remains in talks with the Canadian government about further funding.
Shares in Bombardier were down 5.2 percent to C2.01.
The company expects to deliver seven of the planes this year, compared with its earlier forecast of 15, blaming engine delivery delays by supplier Pratt & Whitney, a unit of United Technologies Corp (NYSE:UTX) UTX.N . The C Series jets contain 100 to 160 seats and designed for short- and medium-haul travel.
Lufthansa AG LHAG.DE unit Swiss International Air Lines confirmed it expected to take delivery of fewer CSeries planes from Bombardier than initially planned this year, due to the engine delays. It had anticipated receiving nine, but declined to say how many it now expected. finally unveiled the CSeries aircraft more than a year ago to fanfare and high expectations, but has struggled with delays and slow sales.
The company now expects to be close to the lower end of the $16.5 billion to $17.5 billion revenue range for the full year. However, it reaffirmed its outlook for 2016 revenue and earnings before interest and taxes. are working very closely with Pratt & Whitney to quickly address this supplier ramp-up issue and to ensure we have a strong supplier base to support our long-term growth objectives," Fred Cromer, president of Bombardier Commercial Aircraft said.
Cromer said the company remained confident it can meet its production goal of 90 to 120 aircraft per year by 2020.
"It looks like a short-term transitory issue. I don't think it's going to have a material impact on the company," said Cormark Securities analyst David Tyerman.
A Bombardier spokeswoman said the delays would also affect deliveries to airBaltic, the launch customer for the company's larger CS300 jet, but should not have an impact on orders further down the road from carriers Air Canada AC.TO and Delta Air Lines Inc (NYSE:DAL) DAL.N .
Pratt & Whitney is facing heavy demand from aircraft makers and has 8,200 orders and options for the fuel-efficient GTF engine family, which is also being used in the Airbus AIR.PA A320neo.
"In terms of production, we've made significant headway in the supply chain, but there is some pressure on new engine deliveries for this year," said Sara Banda, a spokeswoman for U.S.-based Pratt & Whitney.
Banda could not say how the pressure on new engine deliveries would affect other aircraft makers.
Airbus has said it is receiving newly revised engines from Pratt & Whitney after delays caused by software error messages and slow start-up times.
Airbus data released on Tuesday showed the European planemaker had delivered five of its A320neo jets, powered by engines from the same family as those used on Bombardier's CSeries, in August. That was its best month for the latest version of its best-selling A320.
However, deliveries remained behind the original schedule with semi-finished A320neo jets still parked outside its French factory waiting for Pratt & Whitney engines. ($1 = 1.2912 Canadian dollars)