Hertz Global Holdings, the number two US car rental company, cut its full-year forecast due to weaker-than-expected volumes in its airport car rental business.
The US car rental industry is tied closely to airline traffic and hotel bookings, which face cuts in travel spending by government departments and the defense industry after a strong summer travel season.
Hertz, which got a boost from its purchase of rival Dollar Thrifty last year, said weaker volumes in the rental business, the company's biggest, also create fleet-utilization issues.
"Fortunately, stronger pricing in the US airport car rental market is helping to partially offset softer volume," chief executive Mark Frissora said in a statement on Thursday.
Hertz said it now expects revenue of USD$10.8 billion - USD$10.9 billion, down from its previous forecast of USD$10.85 billion - USD$10.95 billion.