UPDATE 2-RTI International posts wider-than-expected Q3 loss

* Q3 adj loss/shr $0.12 vs est loss/shr $0.03

* Sees no improvement in demand till end of 2010

* Boeing's 787 Dreamliner delay continues to hurt

* Expects Airbus to alter contracted requirements

* Shares drop as much as 15 pct (Recasts; adds details, comments from analyst, conference call)

By Antonita Madonna Devotta

BANGALORE, Nov 3 (Reuters) - Titanium products maker RTI International Metals Inc (RTI.N) posted a wider-than-expected third-quarter loss, hurt by a drop in shipments and lower prices, and said it does not see a pick-up in demand till the end of 2010.

Shares of the company fell 15 percent to $17.89 in morning trade, but later recouped some of their losses to trade down $2.17 at $18.81 Tuesday afternoon on the New York Stock Exchange.

On a conference call with analysts, the company said it expects to post a loss for the year and forecast 2010 mill product shipments below 2009 levels as lean demand for its products continue and potential contract deferrals weigh.

Chief Executive Dawne Hickton said she expects to see some push-outs in Airbus' (EAD.PA) contractual requirements over the next few years as a result of the excess inventory created by the delay of the A400 and the A380 schedules.

Airbus has said it might delay the delivery of some superjumbo A380s until January 2010. Earlier this year, the company said the A400 plane built for seven European NATO countries, which is already two years late, could fall three to four years behind schedule.

The company also said it continues to be affected by the production delays of Boeing Co's (BA.N) 787 Dreamliner, to which it is scheduled to supply titanium seat tracks.

Boeing is still struggling to get the first 787 into the air, almost a year and a half after the first one was supposed to be delivered.

RTI has long-term agreements as a supplier to A400, A380 and A350 with Airbus, the 787 Dreamliner with Boeing (BA.N) and the F-35 combat aircraft with Lockheed Martin Corp (LMT.N).

"As we look toward the end of 2009, we still have not seen a pickup in demand, nor do I expect to see demand improve until the end of 2010 at the earliest," Hickton said.

RTI also said there was a continued lack of spot market business, driven by lower end-market demand and the excess inventory in the commercial aerospace supply chain.

The company also said it will raise equity to pay off $242.8 million of bank debt and strengthen its balance sheet due to the continued uncertainty in the commercial aerospace market and the resulting cash flow reductions.

However, Citigroup analyst Brian Yu said the company will need to borrow to fund its "aggressive" $400 million expansion plans, through 2011.

In the latest quarter ended Sept. 30, the company posted a net loss of $8.7 million, or 35 cents a share, compared with a profit of $11.3 million, or 49 cents a share, a year ago.

Excluding items, the company posted a loss of 12 cents a shares, while analysts, on average, were looking for a loss of 3 cents a share, before items, according to Thomson Reuters I/B/E/S.

Quarterly revenue dropped 33 percent to $100.2 million, but topped estimates of $99.7 million. (Editing by Anil D'Silva)