Avis Budget Group: Its Efforts Towards Fleet Optimization

Avis Budget Group’s third quarter of 2024 earnings report highlighted a mixed performance amid challenging conditions. The company reported quarterly revenue of nearly $3.5 billion and adjusted EBITDA of $503 million. The focus remains on aligning fleet size with demand to improve utilization, driven by high fleet carrying costs and vehicle interest expenses. Positively, Avis Budget Group has managed to maintain its fleet discipline, keeping fleet size inside demand, thus optimizing pricing strategies and utilization. In the Americas, revenue reached to above $2.6 billion, and adjusted EBITDA was $384 million. The company’s strategy to prioritize higher-margin business over volume has resulted in improved vehicle utilization rates, which are anticipated to reach historic highs in the fourth quarter. Additionally, the ongoing model year 2025 fleet buy is nearly complete and progressing well, with improved holding costs as compared to previous years. This is expected to drive future profitability as new vehicles are integrated into the fleet.