Avis Budget Group Inc., recently reported a third-quarter profit, helped by increased car rental volumes, higher rental rates and benefits from cost cutting.
For the third quarter of this year, the auto rental company’s revenue increased 10 percent, versus 2006, to a record $1.7 billion. Avis Budget reported net income of $103 million, or 99 cents a share, compared with a net loss of $1.01 billion, or $10.07 a share, a year ago.
The company’s third quarter revenues increased 12 percent year-over- year, driven by a 5 percent increase in rental day volume and a 4 percent increase in time and mileage revenue per day.
Pricing for both commercial and leisure rentals increased, and other car rental revenues including gas, insurance and Where2 navigation fees, significantly outpaced time and mileage revenues–increasing 22 percent.
However, Avis Budget shares fell on Tuesday as the company said it expects 2007 revenues to come in lower than previously reported.