Auto Rental News
MenuMENU
SearchSEARCH

Avis Shows Sequential Improvements in Q2

While revenue was down 78% in April, Avis Budget Group finished June down 59% from the prior year. Off-airport revenues are “close to pre-pandemic levels.”

July 28, 2020
Avis Shows Sequential Improvements in Q2

Global utilization bounced back from the shocking abandonment of travel early in the pandemic, with Avis finishing June at 50% utilization globally.

Photo by Atomic Taco/flickr

3 min to read


In its second quarter 2020 financial results announced today, Avis Budget Group avoided the typical headline that trumpets record revenue. In a nod to these extraordinary times, it chose one that announces how much it saved: “Avis Budget Group Removes over $1 Billion in Expenses in Second Quarter to Mitigate Impacts of COVID-19.”

As international and domestic travel continues to stagnate and the world braces for a “second wave” of COVID-19 cases, there was little on the revenues side to crow about: Avis Budget Group reported a net loss of $481 million and an adjusted net loss of $388 million, while total revenues were down 67% year-over-year.

Ad Loading...

However, the company’s “cost removal actions” were massive, and are ongoing: Avis removed more than $2.5 billion of annualized costs compared to the initial $400 million it announced in late March. Second quarter expenses were 47% lower than prior year, as the company removed over $1 billion of costs.

Those actions reaped some benefits. While revenue was down 78% in April, Avis finished June down 59% from the prior year. As expected, revenue improvement has been more robust in off-airport locations. Avis reports off-airport revenues are “close to pre-pandemic levels.”

While adjusted EBITDA for the quarter was a loss of $382 million, it sequentially improved each month as Avis right sized its fleet. The quarter culminated with an adjusted EBITDA loss of $28 million for June, though adjusted EBITDA for the Americas segment was positive $3 million.

Avis’s second quarter cash burn was $580 million, an improvement of $320 million to prior estimates, “due to continued vigilance around expense control and stronger than anticipated vehicle fleet disposals.” Liquidity at the end of the quarter was $1.5 billion.

The surprising buoyancy of the used car market drove much of the gains. Avis disposed of more than 100,000 vehicles and cancelled over 185,000 incoming vehicle orders around the world in the quarter, with June ending fleet down 26% year-over-year.

Ad Loading...

In fact, Avis sold 30% more fleet in June in the U.S. than it did in June 2019 and its ending fleet for the quarter was down 26% year-over-year.

Global utilization bounced back from the shocking abandonment of travel early in the pandemic, with Avis finishing June at 50% utilization globally. Per-unit fleet costs were $221 per month, a 17% reduction year-over-year.

Avis reduced its total global headcount by 60% compared to pre-pandemic. For those employees remaining, Avis reduced compensation for senior leadership, froze merit increases, eliminated the 401(k) match for highly compensated employees, and suspended hiring.

Avis anticipates that sequential improvement to moderate in the third quarter but anticipates utilization will continue to improve as fleet is matched with demand.

“Since the beginning of April, we have seen consistent sequential week-over-week increases in rental volume, with both the Americas and International having their best volume to date last week due to increased leisure activity,” said Joe Ferraro, Avis Budget Group’s newly appointed CEO. “Coupled with the significant reduction of vehicles as we right size our fleet to current demand, we anticipate both positive cash flow and Adjusted EBITDA for the remainder of 2020.”

More Rental Operations

Back view of a remote driver in front of a screen delivering a car to a location.

Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030

A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.

Read More →
green and blue bar graphs compare fleet sales June 2025 versus June 2026
Fleet Acquisitionby Martin RomjueJuly 8, 2026

Rental Car Fleet Sales Show Mid-Year Strength

June gains ensured rental fleets closed out the first half of 2026 in positive territory.

Read More →
Close up of a row of white CUVs in the Surprice Mobility fleet at the Milan airport.

Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport

The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.

Read More →
Ad Loading...
Julian Gritsch with an MBA class in a classroom.

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry

Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.

Read More →
Green Motion team with banner bearing Japanese flag.

Green Motion Expands Into Japan With Master Franchise Agreement

Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.

Read More →
ACRA Chairman Sharky Laguana on stage at the ICRS event in Grapevine, Texas.
Legal & Legislativeby Martin RomjueJune 24, 2026

ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future

The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.

Read More →
Ad Loading...
Light blue horizontal bar graphs on a chart showing World Cup-related rental car booking trends.
Rental OperationsJune 23, 2026

World Cup Travel Data Shows Longer Car Rentals and More One-Ways

A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.

Read More →
Side view of ICRS speaker Sanchit Garg at podium in front of a floor lit red curtain
Rental Operationsby Martin RomjueJune 22, 2026

A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker

Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.

Read More →
Photos of Martin Romjue and Denis Gjoni on opposite sides of large headline for the video.
Rental Operationsby Martin RomjueJune 17, 2026

Stop Losing Money On Rental Tolls

Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.

Read More →
Ad Loading...
Richard Lowden gesturing on stage in front of a red curtain at the Gaylord Texan Resort near Dallas.
Rental Operationsby Martin RomjueJune 12, 2026

Rethink The Future To Avert A Race To The Bottom

Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.

Read More →
Ad Loading...