Hertz posts quarterly profit on strong rental car demand

  • In Business
  • 2023-02-07 12:39:22Z
  • By Reuters

(Reuters) -Hertz Global Holdings Inc on Tuesday reported a quarterly profit versus a year-ago loss, as demand for rental cars stayed strong amid surging leisure travel and constrained production from automakers.

Shares of the company rose 3.8% to $18.36 in premarket trading.

The car rental industry, tied closely to airline traffic and hotel bookings, has benefited from pent-up desire to travel and explore after an easing of coronavirus restrictions even as inflation remains high.

Rising costs and supply shortages faced by automakers have also made it even more unaffordable for car buyers in an uncertain economy.

However, last month, companies like Ford Motor Co and Tesla Inc slashed prices on some EV models in an aggressive discounting effort to retain market share and bring more buyers to the market.

Hertz reported net income of $116 million for the quarter through December, compared with a loss of $710 million a year earlier.

(Reporting by Priyamvada C in Bengaluru; Editing by Maju Samuel)


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