Hertz's global revenue declined 67 percent year over year to
$832 million in the second quarter, the company reported this week.
U.S. car rental revenues were down 70 percent year over year
to $533 million during the quarter, with transaction days down 69 percent year
over year and pricing down 10 percent. The pricing drop was due to total rental
volume skewing more to longer-term rentals for insurance replacement and other
non-travel needs. In total, off-airport rentals made up 60 percent of total
U.S. revenues during the quarter, compared with 32 percent in the second
quarter of 2019.
Rental car revenues outside of the United states declined 76
percent year over year to $135 million during the quarter, and pricing was down
24 percent due to the same factors as in the United States. Off-airport rentals
made up 71 percent of non-U.S. car rental revenues in the quarter, compared
with 40 percent in the second quarter of 2019.
Despite the overall decline, Hertz reported "sequential
monthly improvement" in revenues from April through June, though leisure
demand growth began to slow in July as Covid-19 cases in the South and West
began to increase.
Hertz reported a net loss of $874 million for the quarter,
compared with a net income of $38 million in the second quarter of 2019. The
company is currently restructuring
under Chapter 11 bankruptcy protection.
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