Postal Service blames revenue shortfall on declining letter volume

November 15, 2017

Declining letter volume was cited by the United States Postal Service as the root cause of its poor financial performance in the fiscal year ended Sept. 30.

The federal agency reported its revenues fell to $69.6 billion, down from $70.4 billion in fiscal 2016.

That left the USPS with a net loss of $2.7 billion for the year, compared to a $5.6 billion loss in the previous year.

According to a news release issued Nov. 14, the decline in revenues was created “largely by accelerated declines in first class and marketing mail volumes.”

Those two categories have been the mainstays of the Postal Service’s financial viability.

But the agency said its mail volumes declined “approximately 5 billion pieces, or 3.6 percent” during fiscal 2017.

That drop was “somewhat offset” by increased package revenues, which climbed by 11.4 percent.

That increase, which has been noted as the agency’s bright spot, was not enough to offset the massive costs of operating a system that is built on letter volume.


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Molly Hatchet-Kuipers

BS. Letter volume steady or up in our office. Probably selling delivery service to Amazon way too cheap.

Brent Russell

..cause they rely on first Class rates to subsidize standard mail rates. And deliver Amazon packages at a loss.

Christopher Paradise

I’ve got news for ya. Eventually 95% of our daily load will be parcels. Letters are dead. Raise the stamp price to $1, charge double for bulk rate mail and press on. I don’t buy the “we suffered another loss” bull anyway.

Teri Slavik

You are absolutely right. I’ve been saying that for years!

Robert Fulbright

With amazon taking their own parcels, I don’t see us gaining parcels any longer either.

Stephen Richard

Sorry….I’m just not believing anything from them anymore. ..After 37 years , I have never worked harder, or longer hours..I do NOT believe their numbers at all. They should be experiencing a windfall due to rural route evaluations being several years behind the explosion of parcels we have seen. …

Mark Pearl

That’s it!!!!

Audrey Mull Bell

Exactly. 31 years here. My body is shot

Tim Williams


Scott Walker

Well said!

Jennifer Spell

But what about the packages that are through the roof???!???

Tony Bane

If volume is declining, why them does it take carriers after dark to get all the mail delivered.

Tracy Sheffield Carter

WhAt declining letter volume?

Coy Tutor

Charge more for bulk rate mail!

Jeff Sexton

Oh really!

Ruth Zitter-Hensley

Spectrum seriously messes with mail

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