Avis Budget Group first-quarter revenues declined 2 percent
year over year to $1.8 billion on slow demand growth and pricing declines.
In the Americas, rental days increased 1 percent, but
pricing declined 4 percent. Commercial rental volume was flat, president and
CFO David Wyshner said.
Outside the Americas, pricing declined 6 percent as volume
increased 7 percent, boosted by Avis Budget's acquisition of rental company
France Cars late last year. Without that acquisition, volume outside the
Americas was flat year over year, though commercial demand showed signs of
growth in Germany and the U.K., Wyshner said.
Overall, corporate car rental demand has been "OK but a
little soft, Avis Budget CEO Larry De Shon said. "We sense that there are
pressures on corporate travel budgets from a variety of sectors, including the
financial services sector," he said. "Contracted commercial pricing
for large commercial accounts … has been extremely competitive, and it remains
that way."
Avis
Budget Group reported a loss of $107 million in the first quarter, compared
with a loss of $51 million in the first quarter of 2016. In addition to lower
pricing, the company also faced higher costs on weaker-than-expected used car
values, De Shon said.