The Air India group has announced a phased expansion of fuel surcharges on its domestic and international routes, citing a steep rise in aviation turbine fuel (ATF) prices due to the geopolitical situation in the Gulf region.

In a press statement released on Tuesday, the airline said ATF, which accounts for nearly 40 per cent of an airline's operating costs, has seen significant escalation from this month because of supply interruptions. In India, the impact is worsened by high excise duty and value-added tax (VAT) on ATF in major cities such as Delhi and Mumbai, putting additional strain on operating economics.