The U.S. car rental industry is tied closely to airline traffic and hotel bookings, which face cuts in travel spending by government departments and the defense industry after a strong summer travel season.

Hertz, which got a boost from its purchase of rival Dollar Thrifty last year, said weaker volumes in the rental business, the company's biggest, also create fleet-utilization issues.

"Fortunately, stronger pricing in the U.S. airport car rental market is helping to partially offset softer volume," Chief Executive Mark Frissora said in a statement.

Hertz said it now expects full-year adjusted earnings of $1.68-$1.78 per share, down from its previous forecast of $1.78-$1.88, based on 465 million shares.

The company cut its revenue forecast to $10.8-$10.9 billion from $10.85-$10.95 billion.

Hertz shares, which have gained 10 percent in the last three months, closed at $25.78 on the New York Stock Exchange on Wednesday.