Spanish low-cost airline Vueling reported a higher first-quarter loss on Thursday as it battled with record oil prices, but said it hoped to book a profit in 2009.

Cut-throat competition and expensive fuel have dogged the airline, which floated in 2006, leading to two profit warnings and an ousting of senior management last year.

Barcelona-based Vueling, which shed a number of non-profitable routes during the quarter, said its loss before tax rose 47 percent from the year-ago period to EUR32.4 million euros (USD$50.3 million).

Revenue rose 48 percent to EUR59.8 million.

Vueling said all-time high fuel costs were offset by a cost-cutting program and favorable exchange rate effects due to a weaker dollar against the euro.

Through the implementation of cost cuts and a rejigging of its network, the airline said it hoped for a lower loss this year than 2007, when it booked a net loss of EUR63.2 million.