diff --git a/autoload/airline/extensions/branch.vim b/autoload/airline/extensions/branch.vim
index 7ad46508..01e23202 100644
--- a/autoload/airline/extensions/branch.vim
+++ b/autoload/airline/extensions/branch.vim
@@ -14,6 +14,10 @@ if s:head_format == 1
   function! s:format_name(name)
     return fnamemodify(a:name, ':t')
   endfunction
+elseif s:head_format == 2
+  function! s:format_name(name)
+    return pathshorten(a:name)
+  endfunction
 elseif type(s:head_format) == type('')
   function! s:format_name(name)
     return call(s:head_format, [a:name])
diff --git a/doc/airline.txt b/doc/airline.txt
index 9b5f00f8..7911a69f 100644
--- a/doc/airline.txt
+++ b/doc/airline.txt
@@ -320,9 +320,13 @@ vcscommand   <http://www.vim.org/scripts/script.php?script_id=90>
   " default value leaves the name unmodifed
   let g:airline#extensions#branch#format = 0
 
-  " to only show the tail, e.g. a branch 'feature/foo' show 'foo'
+  " to only show the tail, e.g. a branch 'feature/foo' becomes 'foo', use
   let g:airline#extensions#branch#format = 1
 
+  " to truncate all path sections but the last one, e.g. a branch
+  " 'foo/bar/baz' becomes 'f/b/baz', use
+  let g:airline#extensions#branch#format = 2
+
   " if a string is provided, it should be the name of a function that
   " takes a string and returns the desired value
   let g:airline#extensions#branch#format = 'CustomBranchName'