First quarter for Dollar Thrifty up from fourth

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In a recent announcement of its first quarter 2009 results, the Dollar Thrifty Automotive Group said that its rental revenue increased by three per cent over the fourth quarter of last year, which indicates that the industry may have bottomed late in 2008.

The rental car industry experienced declining demand that paralleled the decrease in air passenger traffic, as the economic downturn saw leisure and business travel curtailed.

Shares in the rental car group have fallen by nearly three-quarters since last September due to concerns regarding rental car company fleet values and the inability of operators to finance the purchase of new vehicles.

On Tuesday, Dollar Thrifty reported that its rental revenue increased by two to three percent over the $336.7 million achieved in the fourth quarter, but that on a year-on-year basis was down by eight to nine per cent.

Its four per cent hike in prices was not sufficient to offset the 12 per cent decline in demand – partially attributed to Easter falling in the second quarter this year and the month of February being one day shorter. President and CEO Scott L. Thompson noted however that demand had risen by double-digits since the fourth quarter of 2008.

Thomson Reuters surveyed industry analysts, who say they are expecting overall revenue for the first quarter, which is largely rental revenue, to amount to $368 million.

Shares in the Dollar Thrifty Automotive Group were down by 4.3 per cent recently, at $1.77.

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