Avis Budget Group has reported revenue of $1.9 billion for its first quarter 2016, a 2% increase and 3% growth in constant currency. This is primarily due to a 8% increase in rental days offset by reduced pricing, higher per-unit fleet costs, and a $33 million negative impact from currency movements, says the company.
For the first quarter, Avis Budget reported adjusted earnings of $44 million and an adjusted net loss of $27 million in the seasonally slower first quarter.
For the Americas (North America, South America, Central America, and the Caribbean), revenue declined 1% primarily due to lower pricing — partially offset by a 3% increase in volume, according to Avis Budget. Pricing declined 5% in constant currency. Adjusted earnings decreased 45% in the first quarter due to lower pricing and higher per-unit fleet costs.
“Our first quarter results reflect modest demand growth and unusually soft pricing in the Americas," said Larry De Shon, Avis Budget Group’s CEO. "In this environment, we managed our costs and fleet levels carefully. Pricing has already started to turn the corner, and we expect to see progressive improvement in both our pricing metrics and our earnings comparisons over the course of the year."
For the full-year 2016, Avis Budget expects its worldwide revenue to increase 3% to 5% to $8.75 to $8.9 billion, says the company. Per-unit fleet costs are expected to be $305 to $313 per month in 2016 — compared to $277 in 2015.