Post Office Reports Loss of $5 Billion for Year


By SAM HANANEL, Associated Press

WASHINGTON (AP) — The U.S. Postal Service says it lost $5 billion over the past 12 months.

It’s the seventh straight year the agency has reported a net loss.

Postal officials say the loss increases the urgency for Congress to let them end Saturday mail delivery and reduce payments for retiree health benefits.

The Postal Service has struggled for years with declining mail volume and required payments of $5.6 billion annually in health care costs for future retirees. It has defaulted on three of those payments.

Revenue from package delivery continued to grow, rising 8 percent last year. But that’s not enough to offset losses in first class mail, which has been the post office’s most profitable service.

  • dontcrankmeoff

    As long as they pay ridiculous benefits like they are now, they are doomed. Saturday delivery is a good start, but they should just raise the rates for first class by .25 cents and be done with this nickel a year stuff.

  • dontcrankmeoff

    Michael Bach: I’m not at all surprised. But remember they were losing money before becoming a federal agency. Once unionized the USPS is doomed to fail. You can blame the feds, or emails, or whatever you like, but the bottom line is if they were not unionized they would be fixable and profitable, but that will never happen now.

    • alpinequeen

      The creation of the USPS as a Federal agency goes all the way back to the Second Continental Congress in 1775. Requirements mandated by Congress has turned the USPS into a money losing entity.