Airbus has proposed building two separate fighter jets to rescue Europe’s stalled Future Combat Air System.
The €100bn programme 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 a split solution could allow progress if governments approve it.
Germany and Spain back Airbus, while France supports Dassault.
Friedrich Merz recently signalled the current design does not meet Germany’s needs, especially its nuclear role.
France requires that capability, deepening the divide.
The partners must soon decide whether to continue with the fighter or focus on other FCAS components such as drones and the combat cloud.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply chain problems forced it to trim production targets for the A320.
Engine shortages from Pratt & Whitney and fuselage inspections slowed deliveries.
The production setback helped Boeing increase its output to 600 aircraft last year.
Despite the challenges, Airbus still plans higher deliveries in the coming year.
