Europcar released its third quarter financial results earlier this week, reporting a 50% revenue decrease to 537 million euros ($630 million). The loss of revenue is being attributed to the global travel restrictions in response to the COVID-10 pandemic.
The French car rental agency recorded a net loss of 9.7 million euros ($11.5 million) compared to a profit of 129 million euros ($151 million) in Q3 2019. The company's adjusted corporate earnings before interest, taxes, depreciation, and amortization fell from 247.4 million euros in last year’s quarter but remained positive at 54.4 million.
Europcar said that cost cutting measures for 2020 were closing in on 1 billion euros, exceeding the initial target of 850 million, representing a 30% reduction versus the pre- Covid-19 scenario.
Due to the second wave of COVID-19 outbreak and related uncertainties, Eurppcar officials said in a statement that it can not provide financial guidance for the year.
"Relying on the flexibility and adaptability of our operating model, our cost adaptation efforts for the full year 2020 will come close to 1 billion euros in savings," Caroline Parot, CEO of Europcar Mobility Group, said in a statement. "However, in a volatile and highly uncertain business environment, as the Covid-19 outbreak develops again at an unpredictable pace, we consider that we can no longer provide a FY 2020 guidance."