Avis Budget Group cut US$1 billion in costs during the third quarter?amid a spate of lengthier rentals by both corporate and leisure customers, the company reported on Friday. Avis Budget reported third-quarter revenue of US$1.5 billion, down 44 per cent year on year.?

Leisure continues to dominate Avis Budget's customer rental mix, and pricing for on-airport rentals is trending upward, according to Avis Budget Group CEO Joe Ferraro. Pricing of one-week on-airport rentals is "positive" compared with last year and is being influenced by longer rental periods, Ferraro said Friday during Avis Budget's earnings call.?

"People have kept the cars not just for weeks. We have an incredible amount of people, whether it's commercial [corporate] or leisure, that have kept the cars for months," Ferraro said. "The pandemic has created uncertainty, and vehicle solutions allow them to have that."

Avis Budget expects a slow demand recovery for the rest of the year. "We currently foresee demand proceeding with a slow recovery, especially where new cases are low and quarantine restrictions are lifted. Our experience during this initial recovery period continues to show as states or countries reopen, rental activities accelerate," said CFO?Brian Choi. "We believe they are meeting pent-up demand by those experiencing cabin fever. However, we believe a full recovery is contingent upon effective therapeutics and a vaccine."

Avis Budget cut US$1 billion in costs globally in the third quarter, bringing total costs cut to more than US$2 billion for the year so far. The car rental company said it profitably disposed of 75,000 vehicles in the US, including a record 49,000 vehicles sold through alternative channels. "We remain focused on what we can control," said Ferraro.?

The car rental company reported third-quarter net income of US$45 million and an adjusted net income of US$79 million.