NEW YORK (AP) -- Shares of Avis Budget Group Inc. fell Thursday after its larger rival, Hertz, cut its full-year profit and revenue outlook citing weaker demand for airport car rentals.
THE SPARK: Hertz, which made the announcement early Thursday, said it reduced its outlook due to softer-than-expected volume for U.S. airport car rentals of its namesake brand. Other Hertz brands include Dollar and Thrifty.
THE BIG PICTURE: Avis also rents cars from airports. Investors are nervous that Avis may see a similar drop in demand from that business.
A spokeswoman from Avis of Parsippany, N.J., declined to comment.
Besides its namesake business, Avis also rents vehicles through its Budget and ZipCar brands.
SHARE ACTION: Avis shares fell $2.06, or 6.8 percent, to close at $28.04 Thursday. Its shares have traded between $15.10 and $34.21 in the past 52 weeks, and are up over 41 percent since the beginning of the year.
Hertz Global Holdings Inc. shares fell $4.15, or 16 percent, to $21.63. Its shares have traded between $12.97 and $27.75 in the past 52 weeks, and are up 33 percent since the beginning of the year.
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