Car-Rental Companies Hit by COVID-19

The major car-rental companies are seeing major decreases in sales and profits due to flight occupancy being down 95 percent on many carriers.

Hertz recently missed a payment to a group of lenders and has until May 22 to reach an agreement with the parties, “with the goal to develop a financing strategy and structure that better reflects the economic impact of the COVID-19 global pandemic and Hertz’ ongoing operating and financing requirements.”

Avis posted a net loss of $158 million during its first quarter, which was recently released.

Both rental-car companies have cancelled major orders with automakers, according to The Detroit News.