© Reuters. A United States Postal Service (USPS) mail supply truck is seen in Queens, New York Metropolis, U.S., Might 9, 2022. REUTERS/Andrew Kelly/File Picture
By David Shepardson
WASHINGTON (Reuters) – The U.S. Postal Service on Tuesday reported a $6.5 billion web loss for the 12 months ending Sept. 30 and stated it won’t breakeven subsequent yr as first-class mail fell to the bottom quantity since 1968.
The Postal Service stated income fell 0.4% to $78.2 billion outcomes. U.S. Postmaster Common Louis DeJoy stated the loss contains $2.6 billion in inflation prices “above what we projected and what we have been in a position to get well… We aren’t proud of this outcome.”
The company has been aggressively mountaineering stamp costs and is in the course of a 10-year restructuring plan introduced in 2021 that goals to eradicate $160 billion in predicted losses over the following decade and had forecast 2023 as a breakeven yr.
“Regardless of substantial deliberate reductions in our value of operations and progress in our bundle revenues, we won’t attain breakeven ends in 2024,” DeJoy stated, noting USPS has diminished the $160 billion in losses projected in 2021 “to lower than $60 billion,” DeJoy stated.
First-class mail quantity fell 6.1% in 2023 to 46 million items and is down 53% since 2006, however income elevated by $515 million due to increased stamp costs.
The online loss was additionally impacted by accounting for its underfunded retirements brought on by actuarial revaluation and low cost charge modifications. USPS, which has 640,000 workers reported a 2.6% enhance in worker compensation and advantages prices to $52.8 billion. USPS plans to chop $1 billion in transportation prices subsequent yr.
Whole working bills have been $85.4 billion for the yr, a rise of $5.8 billion, or 7.3%. USPS stated to protect liquidity it didn’t make the complete $5.1 billion in retirement plan funds due.
In April 2022, U.S. President Joe Biden signed laws offering USPS with about $50 billion in monetary aid over a decade.
Final month, USPS stated it was searching for approval to lift the value of first-class stamps to 68 cents from 66 cents efficient Jan. 21. Stamp costs are up 32% during the last 4 years since early 2019 after they have been 50 cents.
First-class mail, utilized by most individuals to ship letters and pay payments, is the best revenue-generating mail class, accounting for $24.5 billion, or 31% of USPS 2023 income.