The Postal Service has reported its financial results for fiscal year 2022 (Oct. 1, 2021-Sept. 30, 2022). Here are the highlights:
• Revenue. Operating revenue was $78.5 billion, an increase of 1.9 percent from the previous fiscal year. First-Class Mail revenue increased 3.3 percent, and Marketing Mail revenue increased 9.7 percent. Shipping and packages revenue decreased 2.2 percent, a reflection of a drop in volume after the pandemic surge.
• Volume. Total volume was 127.3 billion pieces, down 1.2 percent from the previous fiscal year. First-Class Mail volume declined 3.4 percent, while shipping and packages volume declined 5.3 percent. Marketing Mail volume increased 1.4 percent.
• Expenses. Operating expenses for the year were $79.5 billion, down 2.8 percent from the previous fiscal year. Operating expenses for the previous fiscal year included $5.1 billion in retiree health benefits expenses. There were no comparative expenses in 2022 because these prefunding retiree health benefit obligations were canceled by the Postal Service Reform Act (PSRA) in April. Were it not for these retiree health benefits expenses, operating expenses would have increased as inflation affected several operating expense categories, resulting in a 2.9 percent increase in compensation and benefits costs, a 12.8 percent increase in the cost of highway transportation, and a 13 percent increase in other operating expenses including rent, utilities and fuel for delivery vehicles.
• Adjusted loss. The adjusted loss for the year was $473 million, compared with adjusted income of $1.5 billion for the same period last year. This excludes the impact of the PRSA, noncash workers’ compensation adjustments for the effects of actuarial revaluation and discount rate changes that are outside of management’s control, amortization expenses for pension benefits, and all retiree health benefits expenses. On a U.S. generally accepted accounting principles basis, the Postal Service had a net income of $56 billion for fiscal year 2022, due almost exclusively to the one-time, noncash boost from the PRSA.
“Our latest results show that we are making solid and steady progress — despite administrative, operational and inflationary headwinds — toward our goals of financial breakeven on an annual basis and sustainability on a long-term basis,” said Postmaster General Louis DeJoy.
“While we are not where we want to be and still have far to go, the execution of our Delivering for America plan is producing greater operational efficiencies, improving service performance, generating more revenue and enabling long-deferred investments to modernize our technology and operations infrastructure. Together, our leadership team and all our employees know we need to remain laser focused and drive hard to implement operational changes, capture the available efficiency gains and grow our revenue, consistent with the initiatives in our plan.”
The Postal Service’s Nov. 10 news release has more information.
