New Delhi: Air India Group on Tuesday announced a phased expansion of fuel surcharge on its domestic and international routes, citing a steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.

The airline, in a press release, said that aviation turbine fuel (ATF), which accounts for nearly 40% of an airline’s operating costs, has witnessed a sharp price increase since early March 2026 following supply disruptions.

In India, the impact has been further intensified due to high excise duty and VAT on ATF in major metro cities such as Delhi and Mumbai, putting additional pressure on airline operating economics.

The new fuel surcharges are being implemented in three phases, covering travel on all flights, including those operated by Air India Express, as follows:

Phase 1 (for all new bookings made from 0001 hours India Standard Time on 12 March 2026):

Phase 2 (for all new bookings made from 0001 hours India Standard Time on 18 March 2026):

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