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.. Air India said in a statement announcing the hike that the price of aviation turbine fuel (ATF). (PTI). 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.. The airline said that the new fuel surcharges will be implemented in three phases.. 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.. |#+|. 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 airline said that the new fuel surcharges will be implemented in three phases. Under the first phase, fuel surcharge of ₹399 will be applied for bookings for domestic travel as well as SAARC countries. West Asia/ Middle East nations will also be applicable for USD 10 hike. Bookings for these regions earlier did not carry any fuel surchage.. 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, w