The airline has announced a “phased expansion” of fuel surcharge on its domestic and international routes, citing “the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.”

Air India said in a statement announcing the hike that the price of aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating costs, had witnessed a significant escalation since early March 2026. The airline said that this was owing to “supply disruptions.”

The pressure in India is amplified owing to the “high excise duty and VAT” on the aviation turbine fuel in major metro cities including Delhi and Mumbai, Air India stated. It added that this eventually magnifies the cost and places substantial strain on airline operating economics.

Air India fares are set to go up as the airline on Tuesday announced a hike in fuel surcharge amid the conflict in the West Asian region.

The airline has announced a “phased expansion” of fuel surcharge on its domestic and international routes, citing “the steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.”

Air India said in a statement announcing the hike that the price of aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline’s operating costs, had witnessed a significant escalation since early March 2026. The airline said that this was owing to “supply disruptions.”

The pressure in India is amplified owing to the “high excise duty and VAT” on the aviation turbine fuel in major metro cities including Delhi and Mumbai, Air India stated. It added that this eventually magnifies the cost and places substantial strain on airline operating economics.

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The airline expressed regret for the increase in fuel surcharges “in this manner”, but said that it was being done due to “factors outside its control.” “Absent such fuel surcharges, it is likely that some flights would be unable to cover operating cost and would have to be cancelled,” Air India said in the statement.

The fuel surcharge for Southeast Asia nations will be increased from USD 40 to USD 60, and for Africa region from USD 60 to USD 90. The first phase will be rolled out from March 12.

Phase 2, which will be effective from March 18, will see hike in fuel surcharges for Europe, North America and Australia.

Meanwhile, Phase 3 will apply to and from “Far East markets, namely Hong Kong, Japan, and South Korea, which will be announced in due course.”

However, the airline clarified that tickets booked beforehand for these dates “will not attract new surcharge unless customers seek date or itinerary changes that require a recalculation of the fare.”