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. 

The National Hockey League said Wednesday it’s reached a multi-year licensing agreement with prediction markets Kalshi and Polymarket. More sports leagues may be coming soon.

Tarek Mansour, Kalsh’si co-founder and CEO, told CNBC’s “Squawk Box” the deal marked a “seminal moment” for prediction markets and the company.

“A league like the NHL partnering with us is a strong sign that prediction markets are here to stay,” Mansour said.

As part of the NHL deal, Kalshi and Polymarket will gain access to the league’s proprietary data and rights to use NHL marks and logos. In return, Mansour said, the hockey league will get a suite of customer protections. The NHL said both companies will receive brand exposure during broadcasts.

Mansour said the NHL deal could be replicated across other leagues: “Be on the lookout for more announcements soon,” he told CNBC.

Representatives for the NBA and NFL did not immediately respond to requests for comment. MLB declined to comment.

In August, the NFL expressed its concern about prediction markets, which allow customers to trade on the outcomes of events across entertainment and culture like election results or the length of the ongoing government shutdown.

Kalshi and other event trading platforms are regulated by the Commodity Futures Trading Commission. Yet many states, regulators and tribes are pushing back on prediction markets, arguing they amount to unregulated gambling. Multiple state and federal lawsuits are in progress over the alleged risks.

The American Gaming Association said in a statement Wednesday that the NHL deal “sends a troubling message.”

“The platforms in question fail to comply with essential standards,” the AGA said. “Worse, they are currently offering sports wagers in all 50 states to anyone 18 years of age—some of which have not authorized any form of legal sports betting and those that have largely define 21 as the prevailing legal age for wagering.”

Keith Wachtel, president of NHL Business, told CNBC he feels comfortable with Kalshi and Polymarket from a regulatory and integrity standpoint, noting that sportsbooks like FanDuel and DraftKings have also struck partnerships with prediction platforms.

He said the league’s interest in prediction markets lies in the opportunity to reach new fans.

“What’s great about prediction markets is it goes beyond sport,” he said. “It gives opportunity to watch a different audience grow significantly.”

Mansour said criticism of the market is par for the course for a disruptor and that he feels confident in Kalshi’s regulatory setup. He said Kalshi has spent years working with the federal government to create a regulated prediction markets.

“When we think about the announcement today, the NHL deal is really about that. It’s essentially a validation of the fact that we have established the right set of customer protection and the right set of market integrity measures to protect our markets, but also the game,” he said.