USPS: Q1 volumes and revenue decline

The US Postal Service (USPS) reported another decline in revenues in the first quarter (Q1), even with packages revenue growing.

Overall revenue fell by $363 million to $19.4 billion in Q1 compared to the same period last year. On a positive note, shipping and packages revenue grew by $146 million even as volumes fell by 84 million pieces.

Mail revenues counteracted the growth in parcels, with First Class Mail declining by $168 million due to a volume decline of over half a billion pieces (3.8%). Periodicals, and marketing mail also saw drops in volumes and revenue.

Postmaster General and CEO Megan J. Brennan commented: “We demonstrated once again the power of our unrivalled network and our ability to provide solutions for our customers while growing package volumes during our peak period. Package revenue for the quarter grew by $146 million. However, overall volumes and mail revenues for the quarter were down, and we continue to face systemic profitability challenges due to our restrictive business model and mandated costs,

“We will continue to aggressively pursue opportunities to generate profitable revenues and drive greater operational efficiencies under our current structure, while also seeking legislative and regulatory reforms to allow the Postal Service to better invest in our business, compete for customers, control our costs and serve the evolving needs of the public.”