Kenya Airways reported Friday a loss of KES5.66 billion shillings (USD$71.8 million) in the year to end March due to fuel hedge costs, after a revised pre-tax profit of KES6.52 billion a year earlier.

The airline's Finance Director Alex Mbugua blamed the performance on the collapse of the oil price: "In September 2008, all hell broke loose, it fell like the Titanic."

One of Africa's leading carriers, Kenya Airways has a fuel hedge policy where it has fixed the price it will buy jet fuel until December 2010.

During the year to March, it reported a loss of KES1.37 billion from fuel derivatives after a KES1.89 billion gain the previous year. It also included an unrealized fuel hedging loss of KES7.5 billion for the period to the end of next year.

Kenya's post-election violence in the first quarter of 2008, last year's high oil prices and the effects of the global downturn also contributed to the loss.

Despite the difficult climate passenger traffic rose 2.3 percent, with strong growth of 15.7 percent in West and Central Africa. Passenger yields were up 6 percent.

Like other airlines across the world, Kenya Airways was hit hard by last year's record high prices of crude oil, which peaked at USD$147 per barrel in July, before retreating this year on the global financial crisis.