When the pandemic hit, car rental companies cut their fleets by up to a half. That did more than stop their businesses from veering off the road. This reduced supply of vehicles, combined with pent-up demand, has since turbocharged the sector’s profitability.

In August, US-based Avis Budget Group hailed a “$1bn turnround”. It reported the best quarterly revenue, adjusted ebitda and margin in its 75-year history, a year after its largest-ever ebitda loss. As a result, there have been big rewards for investors who backed the sector when it was in a tight spot.

Avis’s share price has leapt by more than eight times since last year’s trough. Operating profits at Germany’s Sixt next year should hit a record high on current estimates. The hedge funds that took control of Europcar Mobility Group more than doubled their investment after Volkswagen AG agreed to buy it for $3.4bn in late July.