Dollar Thrifty Automotive Group Inc. reported second-quarter earnings Tuesday of $12.4 million, a 15.8 percent increase over the same three months of 2008. Earnings per share came to 55 cents, blowing past the First Call consensus estimate of a loss of 23 cents per share.

Revenue was $399.6 million, down 10.3 percent from the same period a year ago at Tulsa-based Dollar Thrifty, the smallest of the four U.S. rental car operators.

Dollar Thrifty executives said they were pleased with the second- quarter performance in a down economy and travel market, which they don't expect to pick up in the second half of the year.

"The second quarter represented another step forward in our recovery," said President and CEO Scott L. Thompson. "We are positioning the company for growth in 2010.

"We were pleased with this quarter's operating results, particularly in light of the contracting economy and the bankruptcy of Chrysler, one of our major suppliers. Over the past two quarters, we have taken a number of steps to enhance our operating performance and cash flow, and those actions, combined with improved used- vehicle residual values and firmer rental pricing, drove our improved second quarter performance."

In contrast with Dollar Thrifty's second quarter earnings, Avis Budget Group Inc., the New Jersey-based rental car company that is three times the size of the Tulsa firm, reported a second quarter loss Tuesday of $6 million, or 6 cents a share. Avis Budget's earnings in the second quarter a year ago were $15 million, or 15 cents a share. The New Jersey firm had second-quarter revenue of $1.31 billion, down 16.5 percent.

In the second quarter, Dollar Thrifty operated an average of 109,368 vehicles, a 15.2 percent decrease from the same period a year ago. Average revenue per day was $47.29, down 12.1 percent. Depreciation costs per month per vehicle averaged $365, down 1.1 percent.

Dollar Thrifty executives said the company's financial picture began to change after it slashed employees, closed unprofitable locations and restructured financial agreements last fall and winter.

The company posted a first-quarter loss of $8.9 million, or 42 cents per share, and a $297.9 million loss in 2008's first quarter.

"The first thing is you have to be willing to admit you have a problem," Thompson said. "I hated to let anybody go, but for the greater good we had to let some people go to make a stable company. And these were quality people. These weren't performance issues."

In a matter of weeks, Dollar Thrifty cut 40 percent of its executive vice presidents, 30 percent of its officers and 15 percent of its Tulsa work force.