Draglet Mario can fly for a while until the gauge empties, much like Bee Mario. He can collect Coins in the air to get more fly energy and fly as long as he likes. Also, Mario can spit grand fireballs at enemies from the air or the ground to defeat them.
After the gauge empties, Mario will stop flying and will descend to the ground. When landing the gauge fills up and Mario could fly again. Mario loses this power after landing on water or being hit by an enemy.