Airbus has proposed building two separate warplanes to rescue Europe’s stalled Future Combat Air System.
The idea follows a dispute with Dassault Aviation over leadership of the next-generation fighter.
Chief executive Guillaume Faury said the impasse must not endanger Europe’s long-term defence capability.
He argued a split programme could attract new partners if governments approve.
The FCAS project, launched in 2017, involves France, Germany and Spain.
It combines a new fighter jet, autonomous drones and a digital combat cloud.
Tensions have grown over design priorities, including nuclear capability, which Germany says it does not require.
Governments must soon decide whether to continue the jet element or focus on the other systems.
Airbus said those parts are progressing well despite the stalemate.
The announcement came as Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply shortages from Pratt & Whitney forced it to cut production targets for the A320.
The setback helped rival Boeing increase deliveries to their highest level since 2018.
