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Avis Budget Group Removes over USD1 Billion in Expenses

Avis Budget Group, recently announced second quarter 2020 financial results, with a Net loss of USD481 million and an Adjusted net loss of USD388 million. Total Revenues were down 67 percent year-over-year.

Throughout the quarter, we increased the magnitude of our cost removal actions, and currently are targeting over USD2,5 billion on an annualised basis. Adjusted EBITDA for the second quarter was a loss of USD382 million, but sequentially improved each month as we adjusted to market dynamics and right sized our fleet. The quarter culminated with an Adjusted EBITDA loss of USD28 million for June, highlighted by positive Adjusted EBITDA of USD3 million in the Americas segment.

The liquidity at the end of the quarter was USD1,5 billion. This estimated cash burn would be approximately USD900 million, including USD100 million in previously scheduled debt retirements.

The company’s second quarter cash burn was USD580 million, an improvement of USD320 million, or 36 percent, to our prior estimates, due to continued vigilance around expense control and stronger than anticipated vehicle fleet disposals.