Government Affairs Executive Wins Leading Rental Car Industry Award Avis Cuts Fleet as Summer Demand Trails Expectations Avis Budget Group increased second-quarter earnings despite lower Americas revenue and softer-than-expected summer demand. The company also expanded Avis First and advanced its autonomous fleet operations with Waymo. Note: Auto Rental News reviews public-company earnings calls to identify operating strategies, market conditions, and business developments more so than stock performance or investment analysis. Avis Budget Group reduced its Americas fleet after forward bookings and inbound travel fell below the company’s initial expectations for the summer period, the company reported on its second-quarter earnings call on July 29. The company entered the second quarter expecting fleet growth tied in part to World Cup activity, America 250, and what it anticipated would be a stronger summer travel environment. Summer bookings in the outer months were still showing mid-single-digit growth in April, but that momentum began to weaken in early May. Broader travel indicators followed a similar trajectory. Year-over-year TSA passenger counts went from approximately flat in April to down 0.7% in May and 1.3% in June. Overseas visitors to the United States declined 8% during the quarter, based on U.S. Customs and Border Protection I-94 data. Avis responded by accelerating vehicle dispositions in April and early May, when used-vehicle values were still seasonally favorable, the company said. Americas Earnings Rise Despite Lower Revenue Avis Budget Group’s Americas revenue declined 1.9% year over year in the second quarter as rental days fell 2.1%. Adjusted EBITDA increased 7.7%, however, resulting in approximately 100 basis points of margin expansion. Companywide, Avis reported its highest second-quarter adjusted EBITDA margin in three years and maintained its full-year adjusted EBITDA guidance of $850 million to $1 billion. The Americas fleet ended the quarter 5.4% smaller than a year earlier, its smallest