Hertz quarterly revenue jumps 12% on car rental demand

Hertz quarterly revenue jumps 12% on car rental demand
© Reuters. FILE PHOTO: Signage is seen at Hertz rental car at John F. Kennedy International Airport in Queens, New York City, U.S., March 30, 2022. REUTERS/Andrew Kelly

(Reuters) – Hertz Global Holdings (OTC:HTZGQ) Inc on Thursday reported a 12% jump in quarterly revenue, as demand for rental cars stayed healthy amid surging leisure travel and constrained production from automakers.

The company’s revenue rose to about $2.5 billion for the quarter through September from $2.23 billion a year ago.

The car rental industry, tied closely to airline traffic and hotel bookings, has seen a robust rebound in demand due to pent-up desire to travel and easing coronavirus restrictions.

Consumers have also increasingly opted for rental cars as automakers such as Ford Motor (NYSE:F) Co and General Motor Co struggle to fulfill demand due to supply shortages.

However, expenses continued to weigh on Hertz. Third-quarter net income rose just 1% to $577 million, or $1.33 per share.

Source: Reuters