Avis Raises Revenue Forecast On Rising Demand
Car rental company Avis Budget raised its full-year revenue and profit forecast as demand rose in North America and the company raised prices.
The company reported net profit of USD$26 million for the second quarter ended June 30, compared with a loss of USD$28 million a year earlier.
Revenue rose 10 percent to USD$2.19 billion.
The company raised its full-year profit forecast to USD$2.75 - USD$3.05 per share from USD$2.50 - USD$2.95 earlier and revenue expectation to USD$8.6 billion - USD$$8.7 billion.
Avis, which gets more than two-thirds of its revenue from rentals at airports, expects rental days to rise by 5-7 percent in North America and pricing to increase by about 2 percent this year.
The car rental industry is tied closely to airline traffic and hotel bookings. Major US airlines reported higher profit in the quarter, driven by increased prices and demand while hotel occupancy rose.
Avis reported a 3 percent rise in time and mileage revenue per day - a key metric that indicates pricing - in North America.