Airbus has proposed building two separate fighter jets to break the deadlock in Europe’s €100bn Future Combat Air System.
The idea comes amid a long dispute with Dassault Aviation over leadership of the flagship aircraft.
Chief executive Guillaume Faury said the stalemate must not endanger Europe’s next-generation defence capability.
He argued a split solution could allow progress while keeping the wider programme intact.
FCAS also includes drones and a digital combat cloud.
Tensions increased after German chancellor Friedrich Merz said the planned nuclear-capable jet does not meet Germany’s needs.
France requires that capability, exposing a fundamental difference in military priorities.
Germany, France and Spain must soon decide whether to continue with the fighter element.
Airbus said the other parts of the project are advancing well despite the dispute.
A two-jet approach could also attract additional European partners.
Separately, Airbus reported a 23% rise in annual profit to €5.2bn.
Its shares fell after supply-chain shortages, including engine delays from Pratt & Whitney, forced it to trim production targets for the A320.
Inspection work on fuselage panels also slowed deliveries, allowing Boeing to narrow the output gap.
