Airbus has proposed building two separate fighter jets to rescue Europe’s stalled Future Combat Air System.
The €100bn programme is shared by Germany, France and Spain.
The dispute centres on who leads development of the next-generation aircraft.
Airbus represents Germany and Spain, while Dassault Aviation speaks for France.
Clashing military requirements have deepened the stalemate.
Chief executive Guillaume Faury said a split solution could protect Europe’s long-term defence capability.
He added that governments must decide whether to proceed with one jet, two designs or drop that pillar entirely.
German chancellor Friedrich Merz recently signalled the current concept does not meet Germany’s needs, especially on nuclear capability.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply shortages from engine maker Pratt & Whitney forced it to scale back production ambitions for the A320.
January deliveries fell to their lowest level since 2020 after fuselage inspections.
The company still plans to increase aircraft deliveries this year, but the fighter-jet programme’s future now depends on political agreement between partner nations.
