The Postal Service has reported its financial results for fiscal year 2024 (Oct. 1, 2023-Sept. 30, 2024). Here are the highlights:
• Revenue. Total operating revenue was $79.5 billion, an increase of 1.7 percent compared with the previous fiscal year. First-Class Mail revenue increased 3.4 percent, while Marketing Mail revenue increased 1.9 percent. Shipping and packages revenue increased 2 percent.
• Volume. Total volume was 112.5 billion pieces, down 3.2 percent from the previous fiscal year. First-Class Mail volume declined 3.6 percent, while Marketing Mail volume declined 3.2 percent. Shipping and packages volume increased 2.7 percent.
• Expenses. Under generally accepted accounting principles, total operating expenses for the year were $89.5 billion, an increase of 4.8 percent compared with the previous fiscal year. The overall increase in operating expenses was because of noncash workers’ compensation adjustments and inflationary effects on compensation, retirement and other operating costs, partially offset by lower transportation costs.
• Controllable loss. Excluding certain expenses that are not controllable by management, the controllable loss was $1.8 billion for the year, compared with over $2.2 billion for the previous fiscal year. The net loss for the year under generally accepted accounting principles totaled $9.5 billion, compared with a net loss of $6.5 billion for the previous fiscal year, an increase of $3 billion primarily attributed to the year-over-year increase in noncash workers’ compensation expense.
More than 80 percent of the Postal Service’s current-year net loss is attributed to factors that are outside of management’s control, specifically the amortization of unfunded retiree pension liabilities and noncash workers’ compensation adjustments.
“Our pricing and product strategies are continuing to improve our revenue picture and fuel market share gains in our package business, demonstrating the increasing competitiveness of the Postal Service,” said Postmaster General Louis DeJoy.
“While we continue to reduce our costs, there remain many economic, legislative and regulatory obstacles for us to overcome. We look forward to continuing our focus on transforming and modernizing the Postal Service, driving revenue, reducing the cost to deliver, improving operational performance, and positioning the organization for long-term financial sustainability.”
The Postal Service’s Nov. 14 news release has more information.
