Hertz's global revenue declined 67 per cent year over year
to US$832 million in the second quarter, the company reported this week.
US car rental revenues were down 70 per cent year over year
to $533 million during the quarter, with transaction days down 69 per cent year
over year and pricing down 10 per cent. The pricing drop was due to total
rental volume skewing more to longer-term rentals for insurance replacement and
other non-travel needs. In total, off-airport rentals made up 60 per cent of
total US revenues during the quarter, compared with 32 per cent in the second
quarter of 2019.
Rental car revenues outside of the US declined 76 per cent
year over year to $135 million during the quarter, and pricing was down 24 per cent
due to the same factors. Off-airport rentals made up 71 per cent of non-US car
rental revenues in the quarter, compared with 40 per cent in the second quarter
of 2019.
Despite the overall decline, Hertz reported "sequential
monthly improvement" in revenues from April through June, though leisure
demand growth began to slow in July as Covid-19 cases in the South and West in
US began to increase.
Hertz reported a net loss of $874 million for the quarter,
compared with a net income of $38 million in the second quarter of 2019. The
company is currently restructuring under Chapter 11 bankruptcy protection.