Avis Budget Group Inc. posted $3 billion in revenues for the third quarter of 2021, the company reported on Nov. 1. That total almost doubled the covid-affected prior year and was also 9% above the third quarter 2019. Revenues were driven by increased revenue per day and rental days as demand continued from the second quarter.
For the quarter, Avis recorded $674 in net income and more than $1 billion in adjusted EBITDA, its best adjusted EBITDA in company history.
Utilization for the quarter was 71.6% and showed sequential quarter improvement, Avis reported.
Adjusted EBITDA in International was $128 million for the quarter, driven by pricing and volume beginning to recover in markets that have lagged behind the U.S. recovery.
“Our third quarter results are a testament to our team’s on-going focus around cost discipline and ability to execute operationally,” says Joe Ferraro, Avis Budget Group CEO. “We are seeing the benefits of initiatives we began during the early days of the pandemic and look to build on this positive momentum as the travel environment continues to normalize.”
Meanwhile, shares of Avis Budget Group are on a tear. Prior to the earnings report, the stock had skyrocketed more than 110% since July. The stock surged into record territory in late morning trading on Nov. 2, nearly a 1,000% gain from its low in January this year.
The unprecedented jump is driven in part by Ferraro's comments on an analyst's call on Tuesday, in which he said the company will be "much more active in electric scenarios."