Sixt Sees Growth Amid Travel Surge

In the current climate of economic challenges, the international travel boom is proving beneficial for the car rental company Sixt. According to recent reports, the global tourism sector, including air travel and cruise passengers, witnessed a ten percent increase in the past year. This trend has positively impacted Sixt, with the company's CEO highlighting the correlation between the rising number of travelers and the rental demand for vehicles.

Despite the optimistic outlook for 2025, Sixt is navigating through a complex market. Last year, the company averaged around 384,300 rental cars globally, positioning itself as a major player in the industry. However, 2024 presented challenges, with the company's revenue climbing 10.5% to over four billion euros, yet the net profit saw a significant decline of over 25%, dropping to 244 million euros. Consequently, the board has decided to reduce the dividend for shareholders from 3.90 to 2.70 euros, reflecting the financial strain.

One of the pressing issues facing Sixt is the declining prices for used vehicles, which has resulted in lower-than-expected returns from the sale of its previously rented cars. This trend is attributed to the overall sluggish global economy, which has affected many sectors beyond car rentals.

Looking ahead, Sixt aims to expand its operations, announcing plans to open fifty new rental locations worldwide, with particular focus on the United States, where economic growth appears more robust compared to Europe. The company is also committed to transitioning its fleet towards electric vehicles, with a goal of equipping 70 to 90 percent of its offerings with electric models by 2030. Although the timeline for this transition may extend, the management remains confident in the future of electric mobility, contingent upon the availability of suitable vehicles that meet customer demands.