Southwest Airlines on Wednesday posted a surprise profit for the third quarter and said it expects to generate record sales in the last three months of the year thanks to better travel demand and higher fares.

The carrier said it expects unit revenue to rise between 1% and 3% for the fourth quarter, with capacity up 6% over the same period last year.

“This guidance range assumes demand strength remains at current levels through the end of the quarter,” Southwest said.

Here’s how Southwest performed in the period ended September 30 compared with Wall Street expectations, according to consensus estimates from LSEG:

• Earnings per share: 11 cents adjusted vs. loss of 3 cents expected
• Revenue: $6.95 billion vs. $6.92 billion expected

In July, Southwest joined other airlines in cutting its 2025 profit forecast. The Dallas carrier said it expected full-year earnings before taxes of $600 million to $800 million, down from an earlier forecast of $1.7 billion. It reaffirmed that earnings outlook on Wednesday.

The carrier has been working to better compete with rivals and increase sales, abandoning longtime policies like open seating and two free checked bags for each traveler.

Southwest CFO Tom Doxey told CNBC in an interview that increased sales from selling seat assignments would show up in the first quarter, when the first flights without open seating begin.

Southwest’s third-quarter profit fell more than 19% year over year to $54 million from $67 million. On a per-share basis, Southwest’s earnings fell to 10 cents from 11 cents a year earlier.

Adjusting for one-time items, Southwest reported $58 million in earnings for the third-quarter, or 11 cents a share.

Revenue rose 1% to $6.95 billion from the year-earlier period.