USPS reports $2.3bn net losses

Revenues at the US Postal Service (USPS) fell by $16 million to $17.1 billion in the first quarter of the 2019 financial year. This fall is essentially flat by comparison to Q1 of 2018. Operating expenses at USPS grew by $797 million to $19.3 billion.

Among the falls was First Class Mail that saw a $98 million fall in revenues (1.6%) on a volume decline of 2.7% (361 million items). Marketing Mail also fell, this time by $121 million. Periodicals revenue fell by $250 million (4.8%).

“We continue to face imbalances in our business model that must be fixed through legislative and regulatory change. As we work to effectuate that change, we continue our ongoing aggressive management actions, and remain focused on delivering for the American public, and meeting their evolving business and residential needs,” said Postmaster General and Chief Executive Officer Megan J. Brennan. “We are actively adapting to changes throughout the mailing and shipping landscape, providing customers with new solutions that add value for their investment, improve the service we provide, and drive internal efficiencies.”

“We continue to focus on maximising productivity,” said Chief Financial Officer and Executive Vice President Joseph Corbett. “While many of our network costs are fixed to meet our universal service obligations, we reduced work hours by approximately 1.7 million relative to the same quarter last year.”

Commenting on the results David Williams, Taxpayers Protection Alliance said: “In order to address the agency’s flawed pricing strategy and lack of transparency, the United States Postal Service (USPS) needs an immediate and comprehensive overhaul of its operations. Poor financial decisions have plagued the USPS for more than a decade. This surge of red ink is an alarming trend that further proves the need for postal reform.”

Thomas Aiello, National Taxpayers Union noted: “The United States Postal Service’s deep fiscal problems are well documented and worrisome for taxpayers. Their quarterly report has become a routine exercise in bad news and USPS’ poor management is evident in their continued financial losses. By neglecting to enact meaningful financial reform for pricing and transparency issues, the agency continues, and will continue to suffer.”

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