Southwest Airlines announced on Wednesday that it expects to break even in the fourth quarter due to higher travel demand and pricing.

It had previously predicted a loss for the quarter, citing rising costs as the reason.

The Texas-based carrier, which has had to cancel a large number of flights owing to staffing shortages, said it aimed to be "solidly" profitable in all of 2022 by ensuring appropriate personnel and restoring operational stability.Boeing Wins Massive New Southwest Order | The Motley Fool

Southwest's bullish forecast comes at a time when the airline sector is dealing with the Omicron coronavirus variant's uncertainty. Concerns have been expressed as a result of a flurry of new testing standards and border closures in the run-up to the crucial Christmas travel season.

Leisure bookings for December travel are exceeding expectations, according to the business. Demand for business travel, on the other hand, remains low.

Nonetheless, it anticipates revenue to recover to at least 90% of 2019 levels in the quarter ending in December. In addition, the company's fuel bill is expected to be lower than previously estimated.