Airbus has proposed building two separate fighter jets to rescue Europe’s stalled Future Combat Air System.
The idea aims to end a long dispute with Dassault Aviation over leadership of the programme.
Chief executive Guillaume Faury said the conflict should not endanger Europe’s next-generation defence capability.
He argued a split approach could allow wider cooperation if governments approve it.
The FCAS project, launched in 2017, includes a new fighter, autonomous drones and a combat data network.
Tensions have grown over industrial control and different military requirements.
Germany does not want a nuclear-capable jet, while France does, according to Chancellor Friedrich Merz.
France, Germany and Spain must soon decide whether to proceed with the fighter element.
Other parts of the programme are progressing more smoothly.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply shortages of Pratt & Whitney engines forced it to cut A320 production targets.
Lower January deliveries helped rival Boeing post its strongest output since 2018.
