Avis narrows loss significantly to US77 million in 2009

first_imgAvis has managed to significantly narrow its losses in 2009, recording a US$77 million loss before tax compared to a US$1.3 billion loss for the calendar year of 2008.This was despite revenues dropping 14% down to US$5.1 billion for the 12 months ending December, 2009 compared to the same period a year earlier.  Avis has attributed the result to its ongoing cost reduction program.“In the fourth quarter, we saw… strong pricing, tepid demand, a healthy used-car market and rigorous cost control throughout our operations. This enabled us to post significant year-over-year improvement in earnings,” said Ronald Nelson, Avis Budget Group Chairman and CEO.“Our decisions to remain tight-fleeted and further reduce unprofitable transactions helped us increase our Domestic Car Rental EBITDA by more than $80 million versus the prior-year quarter, despite lower revenues and lower rental volumes.”In 2010 Avis expects year-over-year rental volume comparisons to continue improving, while cost-savings initiatives already in place will continue to pay off.Per-unit fleet costs are also expected to decline year-over-year as Avis intends to add more model-year 2010 vehicles to its fleet. <a href=”http://www.etbtravelnews.global/click/20aa0/” target=”_blank”><img src=”http://adsvr.travelads.biz/www/delivery/avw.php?zoneid=132&amp;cb=INSERT_RANDOM_NUMBER_HERE&amp;n=a238f441″ border=”0″ alt=””></a> Source = e-Travel Blackboard: W.Xlast_img read more