Avis Budget Group 3Q Profit, Revenue Fall as Costs Increased

Dow Jones11-04

Avis Budget Group logged lower profit and revenue in the third quarter as fleet costs increased.

The car-rental company on Tuesday posted a third-quarter profit of $183 million, or $5.15 a share, compared with a profit of $359 million, or $10.11 a share, a year earlier. Analysts polled by FactSet expected $8.27 a share.

Revenue fell 2% to $3.44 billion, compared with Wall Street expectations of $3.42 billion. Chief Executive Brian Choi said the company is navigating a softer travel demand environment.

Total monthly per-unit fleet costs rose 4%, driven by higher costs in the Americas.

Avis said revenue from Americas, its largest region, dropped 3% to $2.55 billion as there were fewer rental days this quarter compared to a year earlier.

Shares of Avis Budget Group fell 7% in post-market trading on Tuesday.

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