Avis Budget Group, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $2.43 billion, a decrease of 5% from $2.55 billion in the same period last year. The company experienced a net loss of $505 million, compared to a loss of $114 million in the prior year, reflecting a substantial increase in fleet costs and a decrease in rental volume and revenue per day. The loss per share for the quarter was $(14.35), compared to $(3.21) in the previous year.
Total expenses rose by 15% to $3.11 billion, driven primarily by a 66% increase in vehicle depreciation and lease charges, which amounted to $1.06 billion. Operating expenses accounted for 55.7% of revenue, up from 52.7% in the prior year, indicating increased pressure on profitability. The company attributed the revenue decline to a 2% decrease in revenue per day and a 1% decrease in rental volume, alongside a negative impact of $23 million from currency exchange rate fluctuations.
In terms of operational metrics, Avis Budget Group's average rental fleet consisted of approximately 631,000 vehicles during the quarter. The company continues to focus on strategic initiatives, including a global restructuring plan aimed at optimizing operations and reducing costs. The restructuring is expected to incur additional expenses of approximately $50 million throughout the year. The company has also committed to purchasing approximately $7.5 billion in vehicles over the next 12 months, a $1.2 billion increase compared to the previous reporting period.
Looking ahead, Avis Budget Group remains cautious about the impact of macroeconomic factors such as inflation, interest rates, and travel demand on its operations. The company is closely monitoring these conditions, as well as potential disruptions from geopolitical events and changes in regulatory environments. Despite the challenges, Avis Budget Group aims to enhance its business through technology and system improvements, with a focus on maximizing profitability and delivering value to stakeholders.
About AVIS BUDGET GROUP, INC.
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