Airbus has suggested splitting Europe’s next-generation fighter project into two separate aircraft.
The proposal aims to break a deadlock with Dassault Aviation over leadership of the €100bn Future Combat Air System.
Chief executive Guillaume Faury said the dispute must not endanger Europe’s long-term defence capability.
He added that a dual-fighter approach could attract additional partners if governments approve it.
The programme, launched in 2017 by Germany, France and Spain, also includes drones and a combat data network.
Tensions have grown as the countries differ on military requirements.
Friedrich Merz recently said Germany does not need a nuclear-capable jet, unlike France.
Governments must soon decide whether to continue with the fighter element or focus on the other pillars.
Airbus said those other parts are progressing well despite the impasse.
Separately, Airbus reported a 23% rise in annual profit to €5.2bn.
Its shares fell after supply shortages, especially engines from Pratt & Whitney, forced cuts to production targets for the A320.
The disruption helped Boeing narrow the delivery gap with its European rival.
