Airbus has suggested splitting Europe’s future fighter project into two separate aircraft to break a long-running deadlock.
The €100bn Future Combat Air System is a joint effort by Germany, France and Spain.
The dispute centres on leadership of the next-generation jet.
Airbus’s defence arm represents Germany and Spain, while Dassault Aviation leads the French side.
Chief executive Guillaume Faury said a split could protect the wider programme.
Germany recently signalled the proposed aircraft does not meet its needs.
Chancellor Friedrich Merz said Berlin does not require a nuclear-capable fighter, unlike France.
The partners must soon decide whether to continue with the jet or focus on other elements such as drones and a combat cloud.
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 fuselage inspections slowed deliveries.
The setback helped Boeing record its strongest output since 2018.
