Postal Service Loses $8.5 Billion in Fiscal Year

The U.S. Postal Service lost $8.5 billion in its fiscal 2010, more than twice the loss of the last year, Bloomberg reported.

It lost $3.8 billion last year, Bloomberg said.

USPS said that $5.5 billion of the loss was due to health-benefit costs for future retirees. Adjustments to workers' compensation liabilities accounted for $2.5 billion.

Revenue decreased 1.5% to $67.1 billion and mail volume fell 3.5%, Bloomberg said.

Postal officials said that without “additional structural change,” the agency might need to exceed its $3 billion annual borrowing limit or its $15 billion debt limit.

USPS’s loss for fiscal 2011 will be $6.4 billion, said Joseph Corbett, chief financial officer.