Here are the main insights for Sixt from Hertz third-quarter earnings;
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Demand is still strong. Fleet utilization was up 300 basis points y/y to 83% while volume was up 16% y/y.
"I would say in our Hertz brand, which plays to a more premium product both by way of service, offering loyalty and the like, we continue to see strength in leisure both in North America and in Europe, " CEO Scherr answered an analyst who asked about the state of demand while citing that some airlines are seeing softening in demand.
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Pricing declined 7% y/y but was stable sequentially (+2%), and is expected to improve in the current quarter.
“We believe that various inflationary factors will continue to support tighter fleets and more elevated rates versus those historically experienced in the industry, all consistent with our ROA focus,” Scherr said.