On Thursday, Hertz Global Holdings (OTC:HTZGQ) Inc reported a 12 per cent increase in quarterly (Q3) revenue, as demand for rental cars stayed healthy amid rising leisure travel and constrained production from automakers.

The company’s revenue increased to about USD 2.5 billion for the quarter through September from USD 2.23 billion a year ago. The car rental industry, closely associated with airline traffic and hotel bookings, has seen a robust rebound in demand due to a pent-up desire to travel and to ease coronavirus restrictions.

Consumers have also increasingly opted for rental cars as automakers such as Ford Motor (NYSE:F) Co and General Motor Co struggle to fulfil demand due to supply shortages. However, expenses continued to weigh on Hertz. Third-quarter net income rose just 1 per cent to USD 577 million, or USD 1.33 per share.

Founded by Walter L. Jacobs in 1918, Hertz Corporation is an American car rental company based in Estero, Florida.