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MLPCaM : My Little Pony – Curse and Madness was drawn as a collaboration of dozens of artists and is written by https://www.deviantart.com/cetussantis
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Page 11 >>2480587
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Page 13 >>2482530
Page 11 >>2480587
The idea here is that despite pegasi can fly high enough, dragons can fly even higher, or better to say they can stay in the highest atmosphere levels more time.
Dragons may stay without oxygen for more time than ponies.
@soundtea explained the stuff quite accurate.
In the straight race in the air parallel to the surface the dragon wouldnt escape, that’s why he took his advantage rising high in the sky.
Even then the question remains: if magic is not involved, how’s that Dragon guy managed to stay conscious himself? I doubt his species is better adapted to heights then cloud-dwelling pegasi and his armour doesn’t appear to have any sort of oxygen-storing vessels on it.
Magic wings != magic lungs and blood carrying oxygen. Even healthy acclimated humans to 15k feet in the air flat out require oxygen assistance to scale something like K2 or Everest. And even the scant few (200 out of 4000) who managed without it were practically barely there by the time they descended.
Edited
Birds don’t have magic. Pegasi (and Dragon) flight would be impossible without it to start with - so I’m pretty sure their ability to breathe on heights depends of their personal power too. And Dash is MUCH more powerful then some Dragon youngling.
Clouds can be pretty low, and the atmosphere goes pretty high. Even healthy humans require outside assistance when you hit that 20000 feet mark. Doubly so if exerting a lot of physical effort. Even a pegasus would have trouble putting in the effort when trying to fly in the bottom layers of the stratosphere.
Even among birds only a scant few types can even get into the lower areas of the Stratosphere. And even then just coasting really.
Edited