News: QAN UPDATE 1-Australia's Qantas to buy back shares in show of confidence despite annual loss

(Recasts with buyback, adds restated loss from a year earlier)

SYDNEY, Aug 25 (Reuters) - Qantas Airways Ltd (QAN) said on Thursday it would buy back up to A$400 million ($276.32 million) of shares despite posting a slightly wider annual underlying loss after its financial performance turned around in the second half as demand returned.

The airline posted an annual underlying loss before tax of A$1.86 billion in the 12 months ended June 30, wider than the A$1.77 billion restated figure from a year earlier and slightly bigger than analyst forecasts.

The bulk of the losses were reported in the first half when domestic and international borders were closed.

"Our debt is now below our target range – so in addition to the investments we're making in customers and our people, we're in a position to start repaying shareholders," Qantas Chief Executive Alan Joyce said of the surprise on-market buyback in a statement.

Investors had provided A$1.4 billion in equity during the pandemic to help shore up the airline's balance sheet. ($1 = 1.4476 Australian dollars)