This work presents a novel algorithm for generating a geometric mesh of an airbag after a series of folds are defined on it, for use in crash simulations. The process of airbag folding is simulated as a series of geometric transformations to the airbag mesh, which is modeled as a stack of connected planar layers. Along with these transformations, optimisation techniques are used to minimise change in the geometry and the area of the airbag post-inflation. The results from this approach are compared with commercially available airbag folding software. It is observed that the algorithm is effective in limiting change in the area and geometry of the airbag in the folding process. The change in surface area is only 0.1% of the surface area of the airbag against the change of 11% in the commercial package. The current paper is a sequel to authors' 'Development of FE meshes for folded airbags', (International Journal of Crashworthiness, 2005 10(3) 259-266), which reports initial results of the folding process.