US-Iran war, March 11 -- Air India on Tuesday announced that it will impose a fuel surcharge on both domestic and international routes. The airline cited a steep rise in jet fuel prices, driven by the geopolitical situation in the Gulf region.

In a press release, Air India said that Aviation Turbine Fuel (ATF), which accounts for nearly 40% of an airline's operating costs, has seen significant price escalation since early March 2026 due to supply disruptions.

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

Air India said that the fuel surcharges will be im...