What caused CAR's Q2 2024 earnings to fall short?

Avis Budget Group Inc (CAR) experienced a shortfall in its Q2 2024 earnings due to a combination of factors:

1. **Used Car Market Challenges**: The company's earnings were impacted by the macroeconomic pressures in the used car market, which is facing oversupply and high inventory. This led to a decline in the company's used car prices, increasing the risk of losses on used car sales.
2. **Fleet Optimization Costs**: Avis Budget Group is aggressively optimizing its fleet size, which resulted in significant costs. The company disposed of a record number of vehicles to align its fleet with demand, and this process negatively affected its earnings. The reduced fleet size led to a decrease in utilization rates, which in turn affected revenue generation.
3. **Interest Expenses**: The company's interest expenses increased due to the refinancing of its euro notes in April 2024, which added financial pressure. This refinancing was necessary to manage its debt and maintain a strong financial position, but it came at a cost, impacting the bottom line.

In summary, the Q2 2024 earnings shortfall for Avis Budget Group can be attributed to the challenges in the used car market, the costs associated with fleet optimization, and the increased interest expenses. These factors combined to create a challenging environment for the company's financial performance during the period.