Airbus has proposed building two separate warplanes to rescue Europe’s €100bn Future Combat Air System.
The idea aims to end a long dispute with Dassault Aviation over leadership of the next-generation fighter.
Airbus represents Germany and Spain in the programme, while Dassault leads for France.
The partners also disagree on military requirements, including nuclear capability.
Friedrich Merz said the current design does not match Germany’s needs.
Chief executive Guillaume Faury warned the stalemate must not derail Europe’s future air-combat capability.
He said a two-fighter approach could attract additional partners if governments approve it.
France, Germany and Spain must soon decide whether to continue with the jet element or focus on other parts of FCAS.
Airbus reported a 23% rise in annual profit to €5.2bn.
However, supply shortages—especially engines from Pratt & Whitney—forced it to scale back production ambitions for the A320.
Inspection work on fuselage panels also slowed deliveries, allowing Boeing to narrow the output gap.
