Stocksak: Hertz revenues jump 12% due to car rental demand

© Stocksak. FILE PHOTO – Signage at Hertz rental car at John F. Kennedy International Airport, Queens, New York City, U.S.A, March 30, 2022. REUTERS/Andrew Kelly

(Stocksak). -Hertz Global Holdings Inc reported Thursday a 12% increase in its quarterly revenue. This was due to strong rental car demand amid a surge in leisure travel and limited production by automakers.

The company’s quarterly revenue rose to approximately $2.5 billion from $2.23 trillion a year earlier. Net income rose just 1%, to $577 million or $1.33 each share, due to deliberately high maintenance costs to address the out-of-service levels.

Stephen Scherr, Hertz Chief Executive, stated in an interview that “we managed the fleet pretty aggressively.”

He stated that Hertz was enjoying the same favorable travel conditions as hotels, airlines and other companies, and was seeing “undeniable strengths in demand across leisure and corporate as well as for us our ride-share company.”

The strong rebound in car rental has been closely linked to hotel bookings and airline traffic. This is due to a pent-up travel desire after the removal of coronavirus restrictions.

Because of supply shortages, automakers like Ford Motor (NYSE:) Co or General Motor Co have had to increase their rental car demand.

Premarket trading saw Hertz shares fall 3.7%

Hertz announced last month that it plans to order up 175,000 General Motors (NYSE) electric vehicles in the next five-years, following plans in October 2021 for 100,000 Tesla (NASDAQ) EVs by 2022.

Hertz’s goal to have 25% of its fleet electric by the end 2024 is his.

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Stocksak Editorial

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