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Hertz’s shares tumble as losses grow

Avis Budget Group has extended its partnership with IAG

Car rental giant Hertz shares have plunged after revealing higher-than-expected losses.

The US company’s shares went down by as much as 19 per cent following the announcement of Hertz’s first quarter results, which were worse than investors had been forecasting.

Hertz made a net loss of $223 million during the first three months of 2017 as total revenue fell by three per cent to $1.9 billion. The company made a net loss of $52 million during the same quarter in 2016.

Kathryn Marinello, Hertz’s CEO, said: “We are executing on a turnaround plan that puts our customers at the centre of everything we do. Our goal is to strengthen the business to drive predictable, sustainable growth over the long term.

“While we are mindful of today's headwinds related to used car residual values, our commitment to investing in the business remains steadfast.

“In particular, we are placing significant emphasis on fleet quality, the customer experience, brand development and systems transformation.”

Hertz has suffered due to lower rental prices and a fall in the price of second-hand cars, which has affected the resale value of its fleet.

The company’s shares are down by around 30 per cent this year and fell by around 60 per cent in 2016.

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