USPS Loses $1.5 Billion in FYQ2
Overall volume drops, but operating revenue increases 1.3 percent
The U.S. Postal Service saw operating revenue increase in its fiscal second quarter, though it continued its record of net losses.
Operating revenue was up 1.3 percent, or $223 million, to $16.9 billion, on the strength of 14.4-percent growth in shipping and package volume. Total mail volume fell by 1.3 percent however.
Meanwhile, the USPS posted a net loss of $1.5 billion in the quarter. Excluding a retiree health benefit prefunding expense, the net loss would have dropped to $44 million though.
As a class, periodicals continued to decline for the USPS. Volume was down 1.2 percent, contributing to a 1-percent revenue loss from magazines, newspapers and other publications distributed by mail.
“For years, trends in hard-copy reading behavior and advertising shifts from print to other media have impacted this segment,” the report notes. “Periodicals are not expected to rebound as e-readers and electronic content continue to grow in popularity with the public.”