U.S. rental car companies this week unanimously reported year-over-year
profit growth for the third quarter, thanks largely to growing volume. Though
executives agreed corporate demand continues to march upward, pricing remains
flat or down compared with last year. Still, they see a fomenting recovery in the rental car business that could present an opportunity for commercial rate
increases in the coming year.
"We're in the early stages of a multi-year upswing in
the business, particularly since travel demand is still well below 2007
levels," Avis Budget Group chairman and CEO Ron Nelson said during the
company's earnings call on Thursday.
Hertz reported third-quarter net income of $156.6 million,
compared with $64.5 million a year earlier, while Avis Budget reported a $90
million net income for the quarter, up from the $57 million net income posted
for the same period in 2009.
Meanwhile, while Dollar Thrifty shareholders on Sept. 30
rejected Hertz's acquisition offer, Avis Budget Group execs on Thursday said
they are awaiting antitrust clearance from the Federal Trade Commission before
proceeding with plans to pursue a deal with Dollar Thrifty.