Avis Budget Group's revenue declined 2 percent year over
year in the first quarter to $1.9 billion, due in part to decreased demand
during the government shutdown and to severe winter weather, the company
reported.
In the Americas, revenue decreased 2 percent as rental days
declined 1 percent amid some "softness in January" during the
shutdown, CFO John North said. The April timing of Easter, during which car
rental demand and pricing strengthen, also affected revenue. Overall pricing in
the Americas was flat year over year during the first quarter; leisure pricing rose
1 percent, and commercial and small business pricing declined 2 percent.
Outside the Americas, revenue dropped 4 percent. Rental days
rose 8 percent, but currency exchange shifts dealt a $50 million hit to revenue,
according to the company.
As a whole, corporate business for Avis Budget has been
"getting better" over the past few quarters, North said. Pricing
remains under pressure, but the length of rentals, particularly in the small
business segment, has been growing, and international volume has been
"extremely strong," he said. Going into the summer, president and CEO
Larry De Shon said, the fleet in the U.S. is "appropriately sized." The
company plans to leverage that to increase pricing.
Avis Budget is introducing new capabilities on its app this
month to enable renters to split purchases between multiple payment types via
the app. That would mean, for example, a traveler paying for a rental with a
corporate card could opt to pay with a personal card for upgrades and ancillaries
not covered by travel policy, he said.
The group reported a net loss of $91 million for the
quarter, compared with a net loss of $87 million in the first quarter of 2018.
Related:
Avis Budget Q4 earnings