Avis Budget Group (CAR) stock plummeted 5.24% in pre-market trading on Wednesday, following a significant net loss reported for the fourth quarter of 2024. The car rental company's shares tumbled after it unveiled a massive $1.96 billion net loss for the quarter, primarily driven by a one-time non-cash impairment charge of $2.3 billion related to accelerating the rotation of its vehicle fleet in the Americas segment.

According to the company, the decision to accelerate the fleet rotation was made to create more certainty in its fleet costs and position itself for sustainable growth in 2025 and beyond. Despite the substantial financial impact, CEO Joe Ferraro expressed confidence in generating at least $1 billion in Adjusted EBITDA in 2025, citing sustained strong travel demand.

In a separate announcement, Avis Budget revealed a leadership transition, with Ferraro stepping down as CEO on June 30, 2025, after serving in the role since 2020. Brian Choi, the company's current Chief Transformation Officer, will succeed Ferraro as CEO, effective July 1, 2025.