Avis Budget Group, Inc. reported a challenging fiscal year for 2024, with total revenues of approximately $11.8 billion, a decrease of 2% from $12.0 billion in 2023. The company experienced a net loss of $1.8 billion, significantly impacted by long-lived asset impairment charges totaling $2.5 billion, primarily related to a strategic shift in fleet management that involved accelerating vehicle rotations and shortening their useful life. Adjusted EBITDA for the year was $628 million, down from $2.5 billion in the previous year, reflecting increased operational costs and a decline in revenue per day.
The company's operational metrics showed a mixed performance. Avis Budget completed over 38 million vehicle rental transactions globally, with an average rental fleet size of approximately 695,000 vehicles. However, revenue per day fell by 3%, and total expenses surged by 43% to $14.4 billion, driven by higher vehicle depreciation and lease charges, which rose by 71% to $3.0 billion. The Americas segment generated $9.1 billion in revenue, while the International segment contributed $2.7 billion, with the latter showing a slight increase in volume despite a decrease in revenue per day.
Strategically, Avis Budget Group made significant moves to enhance its market position, including the acquisition of McNicoll Vehicle Hire in Scotland for $17 million and two North American licensees for a combined $24 million. These acquisitions align with the company's strategy to expand its footprint and enhance operational capabilities. The company also emphasized technology and system enhancements to improve customer experience and operational efficiency moving forward.
In terms of workforce, Avis Budget employed approximately 24,000 individuals as of December 31, 2024, with about 29% covered by collective bargaining agreements. The company continues to focus on employee engagement and benefits, recognizing the importance of its workforce in navigating the challenges of the mobility industry.
Looking ahead, Avis Budget Group aims to strengthen its financial position by focusing on cost management and optimizing its fleet strategy. The company anticipates ongoing challenges from macroeconomic factors, including inflation and interest rate fluctuations, which could impact travel demand and operational costs. The management remains committed to enhancing customer experience and maximizing profitability as it navigates these complexities in the coming fiscal year.
About AVIS BUDGET GROUP, INC.
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