(Reuters) – Southwest Airlines, (NYSE:) Co suffered a less severe third-quarter loss Thursday because of widespread vaccines which boosted travel demand before peak holiday season.

Gary Kelly, chief executive officer stated that traffic was slowing in September and August due to a surge of COVID-19 patients. However, revenue performance and demand for the third quarter were very strong.

Although the company acknowledged that there were still some effects of summer COVID-19’s surge, and current operational difficulties to fourth-quarter revenues, it said they are encouraged by renewed momentum for leisure and business travel.

Even though there is strong demand for aviation, the recent rise in fuel costs has been a pain. Delta Air warned of a fourth quarter loss due to higher fuel expenses. It suggested that it may have to pass higher prices on to its customers.

The Dallas-based airline saw a decrease in net losses to $135 million (or 23 cents per share) from the previous quarter of $1.17 billion (1.99 cents per share) a year prior.

From a year ago, total operating revenues grew 161% to $4.68 trillion.