Some of the world’s biggest car-rental operators are seeing a sharp deterioration in financial performance, blaming a combination of declining leisure and business travel, intensifying price competition, and a drop in used-car values.

On Friday, Avis Budget swung to a net third-quarter loss of $1bn from a $103m profit a year earlier. It also warned that revenues and pre-tax income for the year as a whole would be “significantly lower” than previous estimates.