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Car rental company Avis Europe has indicated that recent trading during July and August to date has shown some improvement in overall revenue trends, with an improvement in rental revenue per day and a lower level of volume decline.

Published: 28 Aug 2009

Car rental company Avis Europe has indicated that recent trading during July and August to date has shown some improvement in overall revenue trends, with an improvement in rental revenue per day and a lower level of volume decline.

However, visibility remains limited and it anticipates continued pressure on consumer sentiment and travel demand in the second half.

The company also shared that volume declined 9.4 percent during the six months to June 30. Overall, for the company, loss after taxation on continuing operations was €25.8 million (2008: loss of €4.0 million)

Pascal Bazin, chief executive of the company, said that brand leadership, service differentiation and geographic diversification supported volumes and proactive actions improved rental revenue per day by one percent, excluding the impact of mix and increased rental length.

“Very strong fleet discipline led to a 4.7 percent point step-change in utilisation. We fully flexed variable costs in line with lower revenues, and together with a structural reduction in fixed costs, these actions led to a limited increase in the underlying seasonal first-half loss,” said Bazin.

He added, “In this uncertain trading environment, we will maintain our rigorous operational discipline to further improve our cost position and business model flexibility, in addition to continuing our strong commercial focus to protect profitable revenue, invest in future profitable growth and in our customers to position the Group well to take full advantage when markets stabilise.”