Avis Budget Posts Lower-Than-Expected Q3 Profit
The company also expects 2008 revenue to be significantly lower than its prior view due to a fall in vehicle rental revenue.
Avis Budget Group Inc posted lower-than-expected third-quarter profit, hit by the slowing economy as customers cut their discretionary spending on travel, translating into lower rentals. For the third quarter, revenue was $1.7 billion, virtually the same as in third quarter 2007.
Avis also said it expects 2008 revenue to be significantly lower than its prior view due to a fall in vehicle rental revenue. The company said its domestic time and mileage revenue per rental day will be down 1 percent to 2 percent but sees domestic rental day volume to be unchanged in 2008.
The company is looking to cut costs and better manage its car fleets, operate more fuel-efficient vehicles, tie up with airlines and hotels, and improve its services and offerings in a slowing U.S. economy.
Avis had cut about 700 jobs in the third quarter, while Hertz had begun programs to reduce headcount by about 1,400 and close about 80 locations, in an attempt to ease costs.
In a statement, Avis said it also plans to raise prices and consolidate some of its operations to counter the challenging environment.
The weak macroeconomic environment and cuts in airline capacity would result in lower on-airport rental volumes, it said.
More Rental Operations

Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform
The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.
Read More →
Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry
A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.
Read More →
Government Affairs Executive Wins Leading Rental Car Industry Award
Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.
Read More →
Green Motion Expands Its African Presence with Mozambique Launch
This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.
Read More →
RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech
Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.
Read More →
NextPass Expands Toll Payment Service to Highway In Toronto
Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.
Read More →
Zubie, PurCo Integrate Rental Damage Detection With Telematics
The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.
Read More →
U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026
LOR related to insurance claims 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 →
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 →
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 →
