Ryanair, Europe's largest low-cost airline, has clocked a fiscal first-quarter profit after its fuel costs tumbled.

First-quarter net income stood at €123 million (Dh642m) from a loss of €90.5m in the same period a year earlier. The sources said that Ryanair is slashing its fare prices to lure passengers among a slump in demand caused by the global recession. The carrier said its fuel costs have witnessed a dip by 42 per cent compared to the same period a year ago when the price of crude oil was climbing towards a record.

In complete contrast to most of the airlines, which are posting losses amid the downturn, the privately-owned Virgin Atlantic has reported a sharp increase in profits for the year ending February. The airlines' annual pre-tax profits almost doubled from the year-before figures of £34.8 million to reach £68.4 million.

The Virgin Atlantic results are distinctly dissimilar to the British Airways' annual pre-tax loss of £401 million posted last week, citing a significant fall in number of passengers and a rise in fuel costs.

Following a tax loss at businesses owned by Royal Bank of Scotland PLC in the first quarter, Dutch state-controlled bank ABN AMRO NV Monday posted a monstrous loss of 886 million euros - a dramatic contrast to the group's antecedent ABN Amro Holding NV's 3.6 billion euros net profit in the same quarter a year earlier.