Avis Budget Group Reports Mixed Q1 Earnings As Pandemic Hits Car Rental Business

Avis Budget Group Inc. CAR on Monday reported total revenue of $1.8 billion in its first quarter, down 9% from the same quarter a year ago.

The parent company of Avis Car Rental posted a net loss of $158 million, or loss per share of $2.16. This compares with the $91 million net loss, or $1.20 per share, posted in the first quarter of 2019.

Analysts had estimated a loss per share of $1.89 on a revenue of $1.75 billion, according to MarketWatch.

The car rental company said it expects revenue in April and May to drop 80% year-on-year as a fallout of the coronavirus (COVID-19) pandemic, but expects business to recover gradually from June onwards as travel resumes.

See Also: Hertz Plummets Amid Reports Company Could File For Bankruptcy This Week

Avis had $1.6 billion in liquidity at the end of the quarter, including $0.7 billion in cash and cash equivalents, which it believes sufficient to last the rest of 2020.

"We have no meaningful corporate debt maturities until 2023 and have no material fleet financing maturities in 2020," the company said.

The company is reporting earnings at a time when its rival Hertz Global Holdings, Inc. HTZ is reportedly preparing to flile for bankruptcy.

Avis shares closed 0.5% higher a $13.97 on Monday, and dropped about 0.7% in after-hours trading.

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