News: QAN UPDATE 1-Australia's Qantas forecasts return to first-half profit as conditions improve

(Adds CEO comments, analyst estimates)

SYDNEY, Oct 13 (Reuters) - Qantas Airways Ltd (QAN) said on Thursday it expected to post a first-half underlying profit before tax of between A$1.2 billion ($753 million) and A$1.3 billion as conditions improved after posting a string of losses during the pandemic.

"It's a remarkable turnaround that comes after A$7 billion of accumulated losses since 2020," Qantas Chief Executive Alan Joyce told reporters.

The forecast for the first half ending Dec. 31 exceeds analyst estimates for a full-year underlying profit before tax of A$1.15 billion, according to the average estimate of 14 analysts polled by Refinitiv.

"Inflation and interest rates haven't made a dent in people's need or desire to travel," Joyce said. "That's not to say things won't soften in the future. But based on our forward booking trends, demand keeps on strengthening."

The airline added that it would improve its wages offer to staff at a cost of A$40 million a year.

Qantas has faced industrial action from some unions over its previous policy of a two-year wage freeze followed by two years of 2% rises amid high inflation in Australia. It will now offer rises of 3% following the two-year wage freeze. ($1 = 1.5934 Australian dollars)