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Air India flight fares set to go up as airline announces hike in fuel surcharge amid US-Iran war

 The Air India group on Tuesday announced a phased expansion of fuel surcharges across its domestic and international network, citing a sharp rise in jet fuel prices triggered by the geopolitical situation in West Asia.Air India said in a statement announcing the hike that the price of aviation turbine fuel (ATF). (PTI)In a statement issued on March 10, the group said, “Since early March 2026, aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has seen significant price escalation due to supply interruptions.” Track LIVE updates on US Iran war here”In India, this pressure is amplified by high Excise Duty and VAT (Value Added Tax) on ATF (Aviation Turbine Fuel) in major metro cities such as Delhi and Mumbai, magnifying cost the impact and placing substantial strain on airline operating economics,” it added.According to the group, the revised fuel surcharges will be implemented in three phases and will apply to travel on all flights, including those operated by Air India Express.Also Read | ‘Catastrophic closure’: Restaurants in fear, govt prioritises home LPG supply as India faces West Asia war ripplesFor Phase 1, applicable to all new bookings made from 0001 hours IST on March 12, fuel surcharges will be introduced on several routes.Domestic India and SAARC routes will attract a surcharge of Rs. 399. Routes to West Asia and the Middle East will see a surcharge of $10. Flights to Southeast Asia will have the surcharge increased from $40 to $60, while Africa routes will see the surcharge rise from $60 to $90.The airline also said that while there are no charges for Singapore flights, the fuel surcharge will be applied on flights from Singapore from Phase 1.The airline said that the new fuel surcharges will be implemented in three phases.Under Phase 2, which will apply to bookings made from 0001 hours IST on March 18, the group said, surcharges will increase further on long-haul routes.It said that flights to Europe will see the surcharge increase from $100 to $125. North America routes will see an increase from $150 to $200, while Australia flights will also see the surcharge rise from $150 to $200.Phase 3 will apply to and from Far East markets, including Hong Kong, Japan and South Korea, with details to be announced later.The airline clarified that tickets issued before the implementation timelines will not attract the new surcharge unless passengers make itinerary or date changes that require a recalculation of fares.Air India said the move was mandated by factors beyond its control.”Air India regrets the need to increase fuel surcharges in this manner but emphasises that it is necessitated by 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,” their statement read.”Air India will review its surcharges periodically and make appropriate adjustments as the situation requires. Air India Express curr 

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