Hertz Posts Higher Revenue, Plans to Relist Amid Travel Rebound
Car-rental company Hertz Global Holdings Inc. said it plans to relist on a major stock exchange by the end of 2021 as its quarterly revenue surged amid a travel rebound.
For April through June, Hertz posted sales of $1.87 billion, growth of 62% compared with the first three months of the year. Sales remained significantly lower than pre-pandemic levels but marked a substantial recovery compared with last year’s spring quarter, when the pandemic brought much of leisure and business travel to a halt.
As vaccination campaigns helped ease the pandemic in the first half of this year, more people hit the road again. Meanwhile, automotive production challenges have squeezed all corners of the car market, raising prices for used cars and keeping rental fleets tight. For Hertz, demand has been resurgent and slim car-rental inventories industrywide boosted the company’s results, Chief Executive Paul Stone said.
“The rental-car industry was among the first to see signs of the rebound, as people felt more comfortable traveling in a rental car where they had more control over their experience,” Mr. Stone said Monday, adding that demand has remained steady despite the more recent rise in cases associated with the Delta variant.
Rental-car fleets contracted during the pandemic as the industry downsized to ride out the steep drop in demand. Many travelers have found it challenging to line up a rental car on their first post-pandemic trips, while others have turned to renting cars from private individuals or have been forced to walk or bike around during their vacations.