Postal Services Reports $384 Million Loss

The U.S. Postal Service lost $384 million its first quarter, it said Wednesday.

USPS attributes the loss to a drop in mail volume by 5.2 billion pieces in the quarter ended Dec. 31, compared with last year. The agency expects mail volume by the end of the fiscal year to drop by 12-15 billion pieces.

Revenue fell 6.3%, or $1.3 billion, to $19.1 million, USPS said.

The continuing recession has caused decreases in volumes of all classes of domestic mail, the agency said.

USPS plans to cut costs in order narrow the deficit. Plans include reductions in work hours, adjusting delivery routes and offering early retirement.

Postmaster General John Potter asked a Senate subcomittee last week for permission to cut a day of delivery each week, in order to cut costs, news services reported.