THE domination of the skies by budget airlines was put into stark context when Ryanair and British Airways (BA) reported vastly differing fortunes yesterday.

The Irish low-cost airline revealed record profits while BA's ongoing misery was compounded by falling passenger numbers last month.

Ryanair added to yesterday's news that it had broken the 2m mark for passenger numbers in a single month by telling the City that first quarter net profits were up 12 per cent to a record 43.8m euros (£30.8m).

Ryanair flew 5.1m passengers in the three months to June 30 - up 45 per cent on the same period last year. It was boosted by new routes and the takeover of Buzz earlier this year.

BA meanwhile flew 0.5 per cent fewer passengers in July during a miserable month for the airline.

The airline, which last week posted its worst ever first quarter loss of £45m, flew 3.27m passengers in July compared with 3.43m in June and 3.28m a year ago. In the UK and Europe, passenger numbers were down 2.3 per cent on last year at 2.3m.

While the figures do not reflect the number of customers stranded at Heathrow because of the dispute, revenues and capacity were hit by the cancellation of 460 flights during the three-day unofficial dispute.