Avis Q1 Revenues Drop 9%
Avis anticipates revenues about 80% lower in April and May compared to the prior year, with a gradual recovery in June and improving thereafter.
Avis disposed of 35,000 cars in March and cancelled 80% of incoming rental vehicle orders in the United States for the remainder of the year.
Photo via Travelarz/Wikimedia.
Avis Budget Group revenues of $1.8 billion for the first quarter of 2020, a decrease of 9% compared to the first quarter last year, the company reported on Monday.
The company reported a net loss of $158 million, adjusted net loss of $103 million, and adjusted EBITDA loss of $87 million.
The beginning and end of the quarter stand in stark contrast: Year-to-date February revenues were up 9% and adjusted EBITDA was up about $60 million. However, the pandemic impacted travel activity and shelter-in-place requirements caused significant deterioration in revenue through March.
Avis disposed of 35,000 cars in March and cancelled 80% of incoming rental vehicle orders in the United States for the remainder of the year. The company has laid off or furloughed 70% of its employees.
“I am incredibly proud of our team,” said Joe Ferraro, Avis Budget Group Interim CEO. “We ended February off to a record start to the year, and in less than a week, we pivoted the entire organization to respond to the unprecedented effects of the pandemic on our business and the economy. Our top priority continues to be the safety of both our employees and our customers. Our front-line employees went above and beyond to assist people in getting home, traveling to care for loved ones or to provide essential services, including first responders and delivery services.”
As of March 31, the company reported available liquidity of $1.6 billion. The company estimates its cash burn for the second quarter 2020 will be approximately $800 million.
Based on current operational assumptions, the company reported it believes it will have adequate liquidity for the balance of 2020 and into 2021.
Avis anticipates revenues being approximately 80% lower in April and May compared to the prior year, with a gradual recovery in June and improving thereafter, as shelter-in-place restrictions are lifted and leisure travel begins to resume.
In markets where shelter-in-place restrictions are being lifted, Avis said it is seeing early indications of improving demand.
More Rental Operations
U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%
Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.
Read More →
Sixt Revenue Tops $2.4 Billion in First Half of 2026
Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.
Read More →
In Memoriam: Bobby Klyce, Avis Licensee Legend
The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.
Read More →
How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]
A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.
Read More →
Car Rental Rates Forecast to Rise 3.6% in 2026 Before Easing in 2027
Car rental rates are projected to rise less than airfares and hotel rates in 2026, then become the only major travel category forecast to decline in 2027, according to projections from GBTA and ALTOUR.
Read More →
Avis Cuts Fleet as Summer Demand Trails Expectations
Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo.
Read More →
Why Bookings Are Only the Start of the Rental Day
A reservation captures demand. The operating test is whether the business can keep the customer, vehicle, commercial terms, and next action aligned until the rental is closed.
Read More →
This Is the Oldest Car Rental Advertisement You’ll Ever See
This ad for Saunders Drive it Yourself, believed to be the first car rental company in the U.S., was found in an Omaha phone book from 1926.
Read More →
The Desk Upsell Is Costing Operators More Than it Earns
Counter upsells generate revenue, but they can also slow transactions, erode trust, and cost repeat business. Fully inclusive pricing may offer operators a better path to long-term value.
Read More →
U-Save Expands Indian Ocean Presence with New Master Franchise for Mauritius
The franchise has been acquired by Mauritian travel entrepreneur Umarfarooq Omarjee, an established figure in the island's tourism and mobility sector.
Read More →