By Kelly Cloonan
Avis Budget Group logged a wider loss in the first quarter as it faced charges after disposing of a record number of vehicles.
The car rental agency on Wednesday posted a loss of $505 million, or $14.35 a share, compared with a loss of $114 million, or $3.21 a share, a year earlier.
Analysts polled by FactSet expected a loss of $5.94 a share.
Revenue fell to $2.43 billion from $2.55 billion a year ago. Analysts expected $2.49 billion.
Avis said it recorded an expected non-cash fleet charge of $390 million after disposing of certain vehicles in its Americas segment, and does not expect further charges related to its fleet rotation strategy.
"We made substantial progress on our fleet rotation strategy during the first quarter, disposing of a record number of vehicles," Chief Executive Joe Ferraro said, adding the action will fuel improved vehicle costs sooner than expected.
Advanced reservations continue to trend positively, and the company will keep a close eye on demand and adjust its fleet accordingly, Ferraro said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
May 07, 2025 16:29 ET (20:29 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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