The results for fiscal 2018’s third quarter (April 1-June 30), released this month, show USPS posted $17.1 billion in total revenue and $18.6 billion in total expenses, leaving the organization with a $1.5 billion net loss.
Several factors contributed to these results, including continuing declines in First-Class Mail volumes, increasing costs in retiree health benefits, and higher transportation costs.
Additionally, some negative pressures affecting USPS were offset by an increase in shipping and package revenue, which rose more than 10 percent during the quarter compared to the same period one year earlier.
The organization has taken steps to manage its business, including growing the number of Informed Delivery users, working to increase Marketing Mail, and upgrading mail and package sorting equipment in delivery units and processing plants.
Corbett says long-term financial stability requires legislative reform; a favorable outcome from the Postal Regulatory Commission’s 10-year price review; and continued innovation, improved efficiency and effective implementation of the organization’s business strategies.
“With these changes, we can put the Postal Service back on solid financial footing,” he says.