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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