Software calculating more accurate flight plans is expected to save Virgin Atlantic £20m and reduce the airline’s CO2 emissions by 100,000 tonnes each year.

Virgin’s third sustainability report outlines how the system, which went live in July, highlights where fuel can be used more efficiently by monitoring 300 different points during each flight.

As a result, the airline said it can now reduce fuel burn on the ground, as well as during holding patterns, and improve fuel efficiency through pilot technique, flight plans, and maintenance.

It expects further improvements to be made as more information is gathered and other measures are introduced to increase fuel efficiency.

These include this year’s introduction of seven new Airbus A330 aircraft, which are up to 15 per cent more fuel efficient on a per-seat basis than the aircraft they replace. Virgin has shed another 1.3 tonnes of weight from the A330s by using lighter airframe, monuments, seats, and galleys and also has made further savings by reducing on-board drinking water and replacing glass wine bottles with plastic ones.

“Fuel use is our number one environmental issue – as well as a significant financial one,” said Virgin Atlantic chief executive Steve Ridgway. “We have worked hard to develop innovative solutions to this matter and this is resulting in major benefits on two fronts as we reduce our carbon footprint and at the same time deliver major cost savings to the airline.”

Carbon emissions per kilometre flown rose slightly in 2011 to 118.8g/km from 117.5g/km in 2010, but Virgin said it expected this to begin falling in earnest from 2014 as new aircraft come online and insisted it was on track to meet its target of a 30 per cent drop between 2007 and 2020.

The company also confirmed work is continuing with New Zealand company LanzaTech to develop alternative fuels from industrial gases, and Virgin expects a demonstration flight to be made in 2013 before then delivering commercial quantities of green fuel the following year.