A novel algorithm for generating Finite Element meshes of folded airbags for use in crash simulations is proposed and evaluated. The algorithm models the airbag folding process through geometric transformations on a given airbag mesh, followed by a series of numerical optimizations in order to achieve a folded state. An airbag model as a stack of connected planar layers is the input. It is shown that the proposed approach compares favorably with existing airbag folding techniques when evaluated quantitatively with the area and volume of the airbag post folding.