© 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 Inc on Thursday reported a 12% jump in quarterly revenue, as demand for rental cars stayed strong 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, while net income rose just 1% to $577 million, or $1.33 per share, reflecting intentionally elevated maintenance costs to address out-of-service levels.
“We managed the fleet pretty aggressively,” Hertz Chief Executive Stephen Scherr said in an interview.
He said Hertz was enjoying the same strong conditions for travel reported by airlines, hotels and others, seeing “undeniable strength in demand across leisure, corporate and for us our ride-share business.”
The car rental industry, tied closely to airline traffic and hotel bookings, has seen a robust rebound due to pent-up desire to travel after an easing of coronavirus restrictions.
Consumers have also increasingly opted for rental cars as automakers such as Ford Motor (NYSE:) Co and General Motor Co have struggled to fulfill demand due to supply shortages.
Hertz shares were down 3.7% in premarket trading.
Last month, Hertz said it plans to order up to 175,000 General Motors (NYSE:) electric vehicles over the next five years, after announcing plans in October 2021 to buy 100,000 Tesla (NASDAQ:) EVs by the end of 2022.
Hertz’s goal is for 25% of its fleet to be electric by the end of 2024.
