US Postal Service – Volumes, revenues drop and losses increase

In the first quarter of its financial year (1st October to 31st December 2021) the US Postal Service reported a significant drop in revenues, profits and volumes.

Revenues for the quarter were $21.3 billion, a drop of almost 0.9% on the previous year. This was led in part by a volume drop of 4.1% in the period (1.5 billion pieces). As a result its losses grew significantly to $1.3bn for the quarter as against $288 million for the same quarter in 2020-21.

Inflationary impacts to operating expenses were pointed to as the major reason for the increase in losses, over and above volume drops. Energy and fuel expenses played a part in this.

With all that, service performance improved in the period, even through the peak holiday season. The management of the US Postal Service say that the improvement in performance is in a large part due to the Delivering for America strategic plan that included investment in infrastructure, installation of package processing equipment and increased leased space amongst others.

“We continue to improve on-time service performance, as was demonstrated during the recent holiday period and which is the result of our ongoing transformation, investments, and operating improvements across our processing and transportation network,” said Postmaster General and CEO Louis DeJoy.  “We continue to make structural progress to correct our long-term financial losses, drive greater efficiency, and achieve financial sustainability.”

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