Hertz says it will raise prices for car rentals starting Jan. 1, shares jump

MarketsAssociated Press

Shares in Hertz jumped Tuesday after the company said it is raising prices for its car rentals.

The Florida-based company said that the price increase applies to all Hertz, Dollar and Thrifty car rentals schedule for pickup after Jan. 1. It did not disclose how much the increase will be and did not respond to a request for detail.

Continue Reading Below

Hertz Global Holdings Inc. CEO and president, John Tague, said that the move will help offset growing fleet costs. The decision comes as Hertz is pursuing cost reductions, which it expects will save $100 million annually.

The company is also in the midst of correcting past accounting problems. It said in June that it needed to review financial reports from the last three years and restate 2011 results. In November it said it will also need to restate its 2012 and 2013 results.

Shares of the company rose more than 8 percent to $24.46 in afternoon trading. With Tuesday's gains, they are still down 15 percent for 2014.