Airbus has proposed building two separate fighter jets to rescue Europe’s stalled Future Combat Air System.
The €100bn project has been blocked by a dispute with Dassault Aviation over leadership of the aircraft element.
Chief executive Guillaume Faury said the impasse must not endanger Europe’s long-term defence capability.
He argued that a split solution could allow progress if governments approve it.
Germany and Spain back Airbus, while France supports Dassault.
The disagreement reflects different military needs.
Friedrich Merz said Germany does not require a nuclear-capable fighter, unlike France.
That difference has raised doubts about a single design.
The FCAS programme, launched in 2017, also includes drones and a combat data cloud.
Airbus said those parts are advancing despite the jet dispute.
Berlin, Paris and Madrid must soon decide whether to continue with the fighter element.
Separately, Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply shortages from engine maker Pratt & Whitney forced cuts to A320 production targets.
Delivery delays and fuselage inspections pushed January output to its lowest level since 2020, helping rival Boeing close the gap.
