Expects widespread international travel in Oct 2021 Had hoped...

• Expects widespread international travel in Oct 2021
• Had hoped for a restart of travel in July
• Targeting domestic capacity at 80% of pre-COVID in Q4

(New throughout, adds CEO comments)

SYDNEY, Feb 25 (Reuters) - Qantas Airways Ltd (QAN) said on Thursday it did not expect a widespread resumption of international travel from Australia until the end of October after posting a A$1.03 billion ($820.40 million) pretax underlying loss for the first half.

The underlying loss before tax in the six months ended Dec. 31, the airline's most closely watched financial measure, compared with a A$771 million profit a year earlier.

On a bottom-line level, Qantas swung to a A$1.47 billion loss from a profit of A$648 million the prior year at a time when many state borders remained closed, hampering a domestic market recovery.

"We're now planning for international travel to restart at the end of October this year, in line with the date for Australia's vaccine rollout to be effectively complete," Chief Executive Alan Joyce said in a statement.

The airline has grounded its international fleet with the exception of government repatriation charters and cargo flights. It had placed international tickets on sale from July, but has pushed that back, with the exception of New Zealand.

Australia on Sunday began vaccinating its citizens against COVID-19.

Qantas has said it will expect international travellers to be vaccinated to board its planes.

In the domestic market, where Qantas normally earns the bulk of its profits, capacity has been running well below pre-pandemic levels due to state border closures.

The airline forecasts it will operate 80% of its usual domestic capacity in the fourth quarter ending June 30, up from 60% in the third quarter. ($1 = 1.2555 Australian dollars)