Avis Europe sees good volume growth in rest of year; FY outlook unchanged

LONDON, May 16, 2008 (Thomson Financial via COMTEX) -- AVSEF | news | PowerRating | PR Charts -- Avis Europe Plc. said the group expects continued good volume growth, albeit with slower growth in Spain for the rest of the year, adding its expectations for the full year outcome remain unchanged.

The car rental company said for the first four months of the year, including the key Easter trading period, revenue was ahead in all customer groups and in all major markets excluding Spain, which was flat on a like-for-like basis.

Avis Europe said the strength of the euro is beginning to affect trading, particularly inbound business from the U.S. into Europe and United Kingdom outbound business into Continental Europe.

However, currency is having a positive effect on the translation of the net cost of the UK activities of the group, the company said.

Avis Europe said fleet costs were higher than expected partly due to difficult used car market conditions in both Spain and the UK, and it expects its overall fleet costs for the full year to be higher.

TFN.newsdesk@thomson.com ndi/bsu/ejp

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