US Postal Service Reports $2 Billion Loss
The U.S. Postal Service ended its fiscal third-quarter with a loss of $2 billion, compared with a loss of $740 million for the same period a year earlier.
The Postal Service has had a loss in 21 of the past 23 quarters. Revenue increased 2% to $16.5 billion.
Shipping and package revenue increased 6.6%, and standard mail revenue rose 5.1% on a 0.9% rise in volume. Total mail volume declined to 37.7 billion pieces in the third quarter from 37.8 billion last quarter.
USPS said the losses have meant it has only been spending on what is deemed essential to maintain its infrastructure.
“To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package-sorting equipment, and make necessary upgrades to our infrastructure,” Chief Financial Officer Joseph Corbett said in a statement.
USPS said it will be unable to make the required $5.7 billion retiree health-benefit payment and that legislation is needed to eliminate the requirement so it can return to long-term financial health.
