Chief Financial Officer Joe Corbett discusses the Postal Service’s year-end financial report in his latest “Dollars and Change” video.
USPS recently reported $73.1 billion in operating revenue for fiscal year 2020 (Oct. 1, 2019-Sept. 30, 2020) and $82.2 billion in operating expenses, leaving the organization with a net loss of $9.2 billion.
First-Class Mail and Marketing Mail volumes continued their ongoing decline during the year, although mail volumes did rise in the fall due to an increase in election-related mail. However, the revenue generated from this increase was countered by the operating expenses associated with expediting the processing and delivery of mail-in ballots.
The Postal Service also reported a 19 percent increase in package volume during the year — the result of major increases in online shopping due to the coronavirus pandemic — but package revenue growth during the medium to long term isn’t expected to make up for losses in mail revenue.
“Going forward, given the lasting declines in mail that accompanied the 2007-2009 Great Recession, we expect that the COVID-19 crisis may have similar effects on mail volume and that volumes may never recover to the pre-pandemic levels,” Corbett says.
The Postal Service can address its financial imbalances through a combination of management actions and legislative and regulatory reforms.
Employees also have a part to play, Corbett says, by helping the organization to improve efficiency, reduce costs, innovate and grow revenue — and by staying healthy during the pandemic.
“The number of coronavirus cases nationwide is increasing. But following the guidelines for protecting yourself will help keep you from catching and spreading it,” he says.