Hertz is now predicting that it will return to profit in the second as demand for autos appears to be stabilizing. While some claim that this assertion may be overly optimistic, Hertz claims to have the data to back it up.

Chief Executive Officer Mark Frissora recently said “Car rental demand in the U.S. and Europe has stabilized and we are experiencing better than anticipated summer-peak reservation build in both market, we are adding fleet as a result.”

In the New York Stock Exchange composite recently Hertz gained 38 cents, or 5.7 percent, to go up to $7.01 per share. The stock has already gone up 38 percent in 2009 since all time lows in 2008. The company now has a market value of $2.6 billion.

Hertz had to report losses in two consecutive quarters as customers and businesses cut back on travel due to financial problems. Hertz earnings forecasts for this year are $900 million to $935 million this year before interest, taxes and depreciation. They also intend to increase cost savings by $70 million, to a total of $570 million.

CEO, Mark Frissor also recently said “Most of what we see of demand is in the leisure market,” “That market has really improved a lot.”