Auto Rental News
MenuMENU
SearchSEARCH

Avis Budget Group Reports Positive EBITDA for Q4

Despite historically low revenues for the fourth quarter, Avis achieved a historically high earnings margin after cutting $500 million in expenses.

February 16, 2021
Avis Budget Group Reports Positive EBITDA for Q4

Avis Budget Group reported a positive adjusted EBITDA for the second quarter in a row.

Photo by Atomic Taco/flickr

2 min to read


For the fourth quarter of 2020, Avis Budget Group reported a positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $74 million, despite revenue dropping to $1.355 billion, down 37% compared to the prior year. Net loss for the quarter was $90 million.

In the Americas region specifically, Avis achieved its best fourth quarter adjusted EBITDA margin on the lowest fourth quarter revenue base in the company’s history, said Avis Budget Group CEO Joe Ferraro in a statement. This comes after removing more than $500 million in the quarter and $2.5 billion in costs for the full-year 2020.

Ad Loading...

Full-year revenue in 2020 was down to $5.4 billion, a 41% drop compared to 2019, with a net loss of $684 million and an adjusted EBITDA loss of $175 million, due to the effects of the COVID-19 pandemic.

The company was aided by an unusually strong used car market in 2020 on short wholesale supply. Avis said it “profitably” disposed of about 250,000 vehicles for the full year, with over half sold through alternative channels as physical auctions were shut down for most of the year.

Avis also reported successfully amending its credit agreements, gaining additional liquidity, and lowering its interest rate on asset-backed securities for 2020.

The company said it is continuing to expand contactless rentals for Avis Preferred customers through its app.

Due to the continued uncertainties of travel, Avis declined to provide guidance. “However, we remain optimistic about those factors we can control in 2021 and specifically around our ability to minimize cost accretion as revenues return,” the company said in a statement.

More Rental Operations

50 states map showing LOR rates for each state with different shades of light to dark green

U.S. Rental Length Declines Slightly in Q1 2026, Enterprise Reports

LOR overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.

Read More →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services

The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.

Read More →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

Carwiz Sets Up Rental Operations In Central Asia

The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.

Read More →
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

Where Rental Fleets Must Adjust To Shifting Catastrophe Risks

West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.

Read More →
Ad Loading...
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

Using AI To Find Rental Car Damage

Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.

Read More →
Photo of CEO Krešimir Dobrilović against a gray modernist crooked-tile mural display.

Carwiz Opens Car Rental Service In Panama

A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.

Read More →
A world map with Flexways logo and new locations headline.

Flexways Opens 10 Locations Among Franchise, Affiliate Rental Networks

The integrated business model combines each operator’s local expertise with international standards to boost sales.

Read More →
Ad Loading...
Photo of a suitcase, passport, and smartphone.

Traveler Customer Satisfaction Up This Year Data Study Shows

The study looks at customer analytics to size up performance in car rentals, rideshare, airlines, lodging, and OTAs.

Read More →
Ad Loading...