BRIEF-Qantas Airways sees H2 2014 Group capacity increase by 3 pct to 3.5 pct

Feb 27 (Reuters) - Qantas Airways Ltd QAN.AX :

* Qantas 2013/14 half-year results - media release QAN.AX

* HY revenue A$7.9 billion, down 4%

* We are facing some of the toughest conditions Qantas has ever seen"

* Chief executive officer Alan Joyce Said "the result was unacceptable and comprehensive action would be taken in response"

* Says group capacity to increase by 3-3.5 per cent in 2H14 compared to 2H13

* Capital expenditure in FY 2014 is weighted to the first half

* Says underlying fuel costs expected to be approximately $4.6 billion in FY 2014

* Group's 2H14 operating environment remains very challenging and volatile

* No group profit guidance can be provided at this time due to major transformation being undertaken by Qantas

* Expenditure in FY 2015 and FY 2016 will be $800 million in each year

* The Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines"

* Says "we will accelerate our Qantas transformation program to achieve $2 billion in cost reductions by FY 2017"

* Source text for Eikon News Search ID:nASX1TbBzn

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