Despite increasing volume, charging more for shipping, USPS loses $2B in spring quarter
WASHINGTON — The Postal Service lost $2 billion this spring despite increasing its volume and charging consumers more money to send mail, officials said on Monday.
The loss for the spring quarter, which ended June 30, was significantly higher than the $740 million loss for the same three-month period last year. The agency blamed increases in compensation and benefit costs for the red ink, and said it would be unable to make a congressionally mandated payment of $5.7 billion this September for health benefits for future retirees. The loss occurred despite a 2 percent increase in operating revenue compared to last spring.
Fredric Rolando, president of the National Association of Letter Carriers, says it would be “irresponsible to degrade services to Americans and their businesses” just as postal delivery is rebounding with the economy. Because more people shop online, “the Internet is now a net positive for USPS, auguring well for the future as e-commerce grows.”
Other findings from the latest quarterly report compared to the same time period last year:
•Shipping and package revenue was up 6.6 percent, while standard mail revenue increased 5.1 percent. The increase was attributed both to higher volume and prices charged to consumers.
•First-Class mail volume declined by 1.4 percent, but revenue climbed 3.2 percent because of price increases.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Presley’s planes will remain at Graceland
- Supreme Court leans toward legalizing gay marriage nationally
- Corinthian Colleges to shut down more than two dozen remaining schools
- Severe storm with tornado roars into north Texas
- At New York City rally, United States urged to acknowledge slaughter of Armenians as genocide
- Mourners attend Baltimore man’s wake
- McCain renews push to have military, not CIA, manage drone strikes
- High morale linked to longer survival among elderly
- Study a surprise: Commercial bees unfazed by pesticides
- Magma chamber spied under Yellowstone volcano
- GOP presidential candidates decry potential nuke deal with Iran to Republican Jewish Coalition