Airbus has proposed building two separate fighter jets to rescue the stalled Future Combat Air System.
The €100bn project has been paralysed by a dispute with Dassault Aviation over leadership of the aircraft element.
Chief executive Guillaume Faury said splitting the programme could protect Europe’s long-term defence capability.
Germany and Spain back Airbus, while France supports Dassault.
Berlin has also signalled the planned nuclear-capable jet does not match its military needs.
FCAS, launched in 2017, also includes drones and a digital combat cloud.
Governments must soon decide whether to continue the fighter project or focus on the other components.
Faury said the wider programme is progressing despite the jet dispute.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply chain problems forced it to cut production ambitions for the A320.
Engine shortages from Pratt & Whitney and earlier fuselage inspections slowed deliveries.
The company still aims to deliver about 870 aircraft this year.
Lower January output helped Boeing record its strongest delivery total since 2018.
