USPS makes large losses

The US Postal Service (USPS) has made large losses again in the first quarter of the financial year 2021 (1st October 20 – 31st December 20). Net losses were $650 million on a net income of $318 million.

USPS says: “More than 1.1 billion packages were delivered during the holiday season amidst a global pandemic. Throughout the peak season, the Postal Service, along with the broader shipping sector, faced pressure on service performance across categories as it managed through a record of volume while also overcoming employee shortages due to the ongoing surge in COVID-19 cases, as well as ongoing capacity challenges with airlift and trucking for moving historic volumes of mail. The Postal Service uniquely accepted all incoming packages, further straining its system. To recover and stabilize operations, the Postmaster General and the Executive Leadership Team took steps to help address the issues. While some delays remain, service levels have substantially improved and remain a top priority.”

“Our strong growth in package volume during the holiday quarter shows how dramatically our business and revenue mix is shifting,” said Postmaster General and CEO Louis DeJoy. “While our positive financial results this quarter are certainly welcome, we continue to face systemic imbalances that make our current operating model unsustainable, and the economic impacts of the COVID-19 pandemic will continue to challenge the organization. It is essential that the Postal Service adopts comprehensive reforms so that we are able to meet the changing needs of our business and residential customers, and ensure our ability to provide reliable, universal mail and package delivery for all Americans.”

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