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 leadership dispute with Dassault Aviation.
Chief executive Guillaume Faury said the deadlock must not endanger Europe’s long-term defence capability.
He argued a split solution could allow progress if governments approve it.
Tensions have grown as Germany and France demand different specifications.
Berlin does not require a nuclear-capable jet, while Paris does.
Chancellor Friedrich Merz called the disagreement technical rather than political.
The FCAS programme also includes drones and a combat data network, which continue to advance.
Partner nations must soon decide whether to proceed with the fighter element or focus on those other systems.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply-chain shortages, especially from Pratt & Whitney, forced it to trim production ambitions for the A320.
Fuselage inspection issues also slowed deliveries and allowed Boeing to narrow the gap.
