Buoyed by Big First Quarter, Hertz Expecting Huge Summer

Car rental giant Hertz Global Holdings Inc., buoyed by a strong first quarter earnings report, said it is expecting a big summer travel season for drive trips no matter how inflation continues to rise.

“You may well see consumptive behavior elevated this summer, inflationary tendencies notwithstanding, because consumers did not have the opportunity to travel due to COVID,” CEO Stephen Scherr said in an interview with Reuters News Service.

Hertz beat Wall Street expectations for the three-month period from January through March, with $1.8 billion in revenue and net income of $426 million.

Reuters noted that Hertz, like most car rental companies, is experiencing a limited vehicle supply inventory – bad news tempered by the fact that they can charge higher rates for cars due to the demand. That allowed Q1 revenue per vehicle to jump 26 percent from the same period last year.