European airline group Air France KLM has confirmed the introduction of a major programme of environmental measures, pledging to invest $3bn a year as it seeks to upgrade its fleet and cut carbon emissions and noise levels from its aircraft.

Jean-Cyril Spinetta, chief executive and chairman of Air France KLM Group, signed the commitment at a French environmental summit yesterday. Under the scheme, Air France said it expects to reduce fuel consumption by 15 to 20 per cent over the next five years.

It added that it aimed to cut carbon dioxide emissions by 20 per cent for flights from France to overseas destinations, and by five per cent for domestic flights, by the year 2012.

The company said it will also swap its eight Boeing 747-200 freighters with new Boeing 777 models, a move it said would cut fuel consumption by 30 per cent.

Significantly the company also pledged to support the European Commission's controversial plans to include aviation in the European Emissions Trading Scheme from 2011, a proposal that is likely to lead to increased costs for operators and is opposed by many European and American airlines.

Air France has also become the latest airline to add a carbon dioxide calculator to its web site, enabling passengers to calculate emissions created from their flights. The new site also allows passengers to pay to offset their emissions through French offset provider ActionCarbone.org, which supports renewable energy projects in Senegal and China.

The move is the latest in a long line of initiatives from leading airlines designed to reduce carbon emissions and improve their green credentials with customers.

Virgin Atlantic last year announced that all profits from its operations would be reinvested in the Virgin Group's various renewable energy projects, while the airline is also expected to undertake the first flight by a commercial airliner powered by biofuel next month.

Meanwhile, BA also announced plans recently spoken to revamp its carbon offset scheme and support research into aviation's contribution to global warming.