Avis Budget Group announced third quarter net income of $45 million as a result of removing about $1 billion of costs for the quarter and taking advantage of the strong used vehicle market.
The company also reported a net loss of $847 million.
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.”
Short term, the company will focus on domestic business as travel bans are lifted. Midterm, the company will “rethink its priorities, so as to adapt to a ‘new normal’ given the reinforced digital habits, new safety standards, and new travel patterns.”
The company has laid off or furloughed 21,000 employees as a result of the coronavirus pandemic. April revenue is trending down 80% from the prior year. Similar trends are expected in May, but the company “expects a gradual recovery thereafter.”
In the third quarter, Hertz grew U.S. income on increased transaction days and a decrease in depreciation, while international revenues, earnings decrease.
For the third quarter, Avis Budget Group reported declines in adjusted EBITDA, pretax income, and net income. Performance in Americas beat International.
Second quarter revenues featured a 2% increase in rental days.
During the second quarter of 2019, Europcar posted a net profit of 1 million euro ($1.1 million) compared to a net profit of 18 million euro ($20 million) in the second quarter of 2018.
This represents an increase of 13% when compared to revenue of $3.1 million in the fourth quarter of 2018.