India, March 10 -- 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 avi...