The Postal Service has reported its financial results for fiscal year 2024’s third quarter (April 1-June 30). Here are some highlights:
• Revenue. Total operating revenue was $18.8 billion, an increase of 1 percent compared with the same quarter one year earlier. Shipping and packages revenue increased 2.4 percent, First-Class Mail revenue increased 2.1 percent and Marketing Mail revenue increased 3.1 percent.
• Volume. Total volume was 26.6 billion pieces, down 1.6 percent compared with the same quarter in the previous fiscal year. Shipping and packages volume increased 2.7 percent, while First-Class Mail volume declined 3.4 percent and Marketing Mail volume declined 0.3 percent.
• Expenses. Under generally accepted accounting principles (GAAP), total operating expenses were $21.4 billion, an increase of 4.4 percent compared with the same quarter one year earlier. The overall increase in operating expenses was primarily due to inflationary impacts effects on compensation costs, retirement costs and other operating costs, partially offset by lower transportation costs.
• Net loss. The net loss for the quarter under GAAP totaled $2.5 billion, compared with a net loss of $1.7 billion for the same quarter the previous fiscal year. GAAP results for the quarter were negatively affected by $1.4 billion of expenses attributed to the amortization of unfunded retiree pension liabilities and by a workers’ compensation noncash expense of $67 million driven by actuarial revaluation and discount rate changes; these factors are not controllable by the Postal Service.
“We are making solid progress in generating a sustained revenue growth trajectory in our mailing and shipping businesses, which is validation of the product and pricing strategies and network capabilities enabled by our Delivering for America plan,” said Postmaster General Louis DeJoy.
“We continue transforming and modernizing our processing, transportation and delivery networks, which will enable the Postal Service to operate more efficiently and effectively and at lower cost. Despite inflationary headwinds impacting our costs, we remain committed to finding a path to return the Postal Service to long-term financial sustainability.”
The Postal Service’s Aug. 8 news release has additional information.
