Avis Budget March Revenue Negatively Affected; Withdraws FY Outlook

(RTTNews) - Avis Budget Group Inc. (CAR) said that reservations and revenue in March began to be negatively affected as travel restrictions were broadly implemented. The outlook for April and beyond is challenged with reservations down approximately 60% and with the potential for further declines. As a result of the developments, the company has withdrawn the financial outlook for fiscal year 2020.

The company is reviewing its overall fleet plan and aggressively reducing vehicles, matching staffing levels to current demand, and reducing operational costs and pausing capital spending among other actions.

The company is also evaluating compensation expense and intend to make reductions, including to base compensation for senior employees including the executive leadership team. Overall, it are targeting more than $400 million in annualized cost reduction and mitigation.