Despite attempts to rehabilitate the United States Postal Service, the operation reported a loss of $2 billion dollars this spring.
The loss for the spring quarter, which ended June 30, was significantly higher than the $740 million loss for the same three-month period last year. The agency blamed increases in compensation and benefit costs for the red ink and said it would be unable to make a congressionally mandated payment of $5.7 billion this September for health benefits for future retirees. The loss came despite a 2 percent increase in operating revenue compared to last spring.
The CFO of the Service. Joseph Corbett explained,
Due to continued losses and low levels of liquidity, we've been extremely conservative with our capital, spending only what is deemed essential to maintain existing infrastructure"
Some of the other findings are:
- Shipping and package revenue was up 6.6 percent, while standard mail revenue increased 5.1 percent. The increase was attributed both to higher volume and prices charged to consumers.
- First-Class mail volume declined by 1.4 percent, but revenue climbed 3.2 percent because of price increases.
- Operating revenue increased by $327 million to $16.5 billion.
- Operating expenses increased by $1.5 billion to $18.4 billion.