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Avis Budget Posts Q1 Loss On Acquisition Costs

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Car rental company Avis Budget posted a quarterly loss on acquisition-related expenses, but revenue rose on improved travel demand across most of the company's markets.

Avis Budget, which competes with Hertz and Dollar Thrifty, bought Avis Europe for GBP£635 million (USD$1.03 billion) in 2011.

The company reported a net loss of USD$23 million for the first quarter, compared with earnings of USD$7 million a year earlier.

Earnings were hit by expenses of USD$27 million on early extinguishment of debt, USD$7 million in restructuring costs, and USD$6 million in transaction-related costs.

Revenue rose 31 percent to USD$1.62 billion, while expenses increased 35 percent to USD$1.65 billion.

Avis last week forecast full-year revenue growth of between 24 percent and 29 percent on higher demand and a strong used-vehicle market.

The car rental industry, tied closely to airline traffic and hotel bookings, has experienced strengthening demand due to recovering business travel in the United States.

(Reuters)