Avis and Hertz stocks fall as airport shutdown nears end
Investing.com -- Avis Budget Group (NASDAQ: CAR) shares fell 5% and Hertz Global Holdings (NASDAQ: HTZ) dropped 4% Friday following news that Congress moved to end the partial government shutdown that had disrupted airport operations.
The US Senate passed legislation early Friday to fund most of the Department of Homeland Security, forging a path to end a lengthy partial government shutdown that snarled airport security. The bill, which must still pass the House and be signed by President Donald Trump, marks a reversal for Republicans who had blocked similar proposals for weeks. The legislation passed the Senate by voice vote.
The stock declines came after President Donald Trump said Thursday he would sign an emergency order instructing the Homeland Security secretary to immediately pay Transportation Security Administration agents as Congress worked to reach a deal.
Earlier in the week, both rental car companies had benefited from the airport chaos. Hertz shares rose about 9.2% on Thursday, while Avis surged 13% for its biggest one-day gain since June, as hours-long security lines at airports drove travelers to seek alternative transportation. Traffic to Hertz's website jumped about 15% during the week as customers looked for ways around air-travel disruptions.
The company had been promoting discounts on last-minute reservations and one-way rentals to capitalize on the surge in demand from travelers avoiding airports affected by the shutdown.