New Delhi, March 10 -- Air India on Tuesday announced a phased expansion of fuel surcharges on both domestic and international routes and said the step has been necessitated by a steep rise in jet fuel prices arising from the geopolitical situation in the Gulf region.

In a statement, the airline said aviation turbine fuel (ATF), which accounts for nearly 40 per cent of an airline's operating costs, has witnessed a significant price escalation since early March 2026 due to supply interruptions.

"In India, this pressure is amplified by high Excise Duty and VAT on ATF in major metro cities such as Delhi and Mumbai, magnifying cost....and placing substantial strain on airline operating economics," the statement said.

According to the state...