(Bloomberg) -- Avis Budget Group Inc. shares rose in late trading as a rebound in travel contributed to record net income and earnings per share that exceeded even the highest analyst estimate.

Third-quarter net income reached $1.03 billion and adjusted Ebitda was $1.46 billion, both setting records, Avis said in a statement Monday. Adjusted earnings of $21.70 a share easily beat the average forecast of $14.72. Revenue of $3.55 billion also topped any previous quarter, as the rental-car company took advantage of high rates at the counter.

Stronger travel demand, especially overseas, helped in the quarter. But some of the swing in profits was assisted by lower US depreciation on its rental cars, which will be tough to sustain as the used-car market weakens. Avis shares rose as much as 10% before paring the gain, and were trading up 2.1% at 5:33 p.m. in New York.

“Despite growing concerns around an economic slowdown, our strong summer performance, driven by increased demand in both the commercial and leisure segments, carried through to September,” Chief Executive Officer Joe Ferraro said in the statement. “We remain optimistic this will continue throughout the fall and into the holiday season.”

The company reported daily rental rates globally that rose more than $3 a car to $79.21. The international rates led the way, surging almost $20 a day to $74.45, while rates in the Americas fell slightly.

Avis said its depreciation fell to just $10 per car per month from $143 a year earlier. Normally, rental-car companies see depreciation of more than $250 per car per month, but a historic run-up in used-car prices triggered during the pandemic era has helped their profits. 

Hertz Global Holdings Inc. had similarly favorable used-car costs early in the year but said its third-quarter monthly depreciation costs per vehicle in the US climbed to $198 -- up from just $21 in the third quarter of 2021. Its current costs are headed closer to historic rates. 

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