A decline in demand and a deterioration in the used-car market sunk Dollar Thrifty Automotive Group to a $72.2 million net loss in the fourth quarter of 2008.
The loss more than doubled the $30.6 million Dollar Thrifty lost in the fourth quarter of '07.
Revenue was $355.1 million compared with $389.2 million a year earlier, an 8.8% drop. Rental revenue fell 9.8%, to $336.7 million. Fleet size was down about 3%.
Per-vehicle depreciation costs increased about 16% in the fourth quarter, reported Dollar Thrifty, due to the decline in residual values resulting from the deterioration of the used-vehicle market.
For the full year, Dollar Thrifty lost $340.4 million, compared with a net profit of $1.2 million for all of 2007. Revenue for 2008 was $1.7 billion, a 3.6% decrease.
Like other businesses in the travel industry, Dollar Thrifty said it faces a daunting '09.
"As we move forward in 2009, our primary objective is preservation of liquidity and enhancement of operating cash flow to ensure that we maintain maximum flexibility to address the uncertainties ahead," said CEO Scott Thompson.
As of Dec. 31, Dollar Thrifty said it had a tangible net worth of approximately $185 million and $230 million in unrestricted cash. The company added that it was in compliance with all financial covenants.