Low fares have depressed profits despite passenger growth. This is likely to continue

IndiGo Airlines, the market leader in domestic aviation, has been struggling over the past year. While it has been growing capacity and passenger traffic rapidly, the airline’s finances have been hit by high costs and weak ticket prices. The stock, staying largely subdued over the last calendar, has rallied nearly 30 per cent since January, thanks to a dip in oil prices and a stronger rupee that...