Hertz's global revenue declined 67% year over year to $832 million in the second quarter, the company reported this week.
U.S. car rental revenues were down 70% year over year to $533 million during the quarter, with transaction days down 69% year over year and pricing down 10%. 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% of total U.S. revenues during the quarter, compared with 32% in the second quarter of 2019.
Rental car revenues outside of the U.S. declined 76% year over year to $135 million during the quarter, and pricing was down 24% due to the same factors as in the United States. Off-airport rentals made up 71% of non-U.S. car rental revenues in the quarter, compared with 40% 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.
Source: Business Travel News