India, March 11 -- Air India on Tuesday announced that it will introduce a phased fuel surcharge on both domestic and international routes, citing a steep rise in aviation turbine fuel (ATF) prices triggered by the ongoing tensions between Iran and the United States in the Middle East.

The airline said the increase will be implemented in three stages and acknowledged that the move could push up ticket prices. However, it described the step as unavoidable, attributing the decision to factors beyond its control.

According to Air India, without revising fuel surcharges, some routes could become commercially unsustainable. "Absent such fuel surcharges, it is likely that some flights would be unable to cover operating costs and would have to...