Car rental firm Hertz has seen its pre-tax loss grow to US$539 million during the first half of the year – mainly due to the depreciation in the value of its fleet.
This compares to a loss of US$112 million during the same period in 2016 as Hertz’s revenue fell by 2.7 per cent to US$4.1 billion and depreciation charges on its hire cars increased by 16 per cent to US$1.4 billion.
On a more positive note, the firm said that it had now completed its fleet transformation in the US, as well as updating its financial and revenue management systems. It has also redesigned 37 airport locations.
Hertz CEO Kathryn Marinello said: “We have made significant progress in the first half of the year, executing on our operating turnaround plan.
“Of course, the hard work always comes before the pay-off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the US."
“Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes.”