Hertz Global Holdings reported third-quarter revenue of nearly $1.3 billion, down from more than $2.8 billion in the third quarter of 2019, but executives said some demand is improving.
Hertz during the third quarter saw month-to-month revenue improve, thanks in part to leisure demand. "Since Labor Day, U.S. rental volume has trended better, reflecting pent-up leisure demand and market-specific rate adjustments," said CEO Paul Stone in a Monday earnings statement.
The car rental company is in Chapter 11 bankruptcy since filing in May and has secured new funding. Hertz closed on $1.65 billion of debtor-in-possession financing to support ongoing operations, vehicle procurement and key investments in the company. in addition, Hertz secured commitments for $4 billion of fleet financing which, if approved by the court, will enable the company to meet its forecasted U.S. fleet needs through 2021, according to the company.
As part of its cost-saving measures, the company has reduced its average operating fleet by 34% year over year through its retail, wholesale and dealer-direct channels. As of late October, Hertz's U.S. fleet level is "well positioned to match current demand," and Hertz Global's international fleet in the third quarter is down 51% year over year, the car rental company.
Based on the reductions in direct operating and selling, general and administrative expenses to date, Hertz has increased its 2020 global cost-savings target to $3 billion, up from $2.5 billion. For the third quarter, the car rental company had a net loss of $222 million and liquidity of $1.1 billion.
Source: Business Travel News