UPS ( UPS) shares fell Monday after a report that the company is looking to cancel more than a billion dollars in aircraft orders with Airbus because of a switch in consumer preferences and the shipper's efforts to streamline operations. According to The Wall Street Journal, which cited sources close to the deal, the world's largest shipment company is in negotiations to cancel about $1.6 billion in orders for the A300-600 aircraft. Mary Anne Greczyn, a spokesperson for Airbus, a joint venture of EADS and BAE Systems ( BAESY.PK), confirmed that the company was talking with UPS and said "There haven't been any cancellations, and the contract had not been changed." Recently, UPS shares fell 75 cents, or 1.1%, to $69.88, while rival FedEx ( FDX) dipped 33 cents, or 0.5%, to $68.35. Terms of the contract are not available, but Howard Rubel, an analyst at Schwab Soundview Capital Markets, said in a research report "There is no question that UPS wants to walk away from this order" Rubel said that UPS may be able to cancel orders for planes if construction has yet to begin on them, adding that a UPS cancellation would likely be the end of the A300-600, since the shipping company is the A-300's biggest customer. "Should UPS walk, this would spell the end of the line for the A300-600, a line that we estimate was producing about nine planes per year out of a total line of 300 planes. There could be some adverse financial impact on EADS as a consequence of this," said Rubel. "It is possible Airbus would like UPS to buy the A380." Over the last three years, customers have moved away from more expensive air shipments to ground shipments, and analysts say this has forced UPS to adjust its fleet planning, especially for domestic operations. A recent report from Morgan Stanley said that demand for air express grew 2% year over year in January, down from the 7% year-over-year growth seen during December.