Significant financial losses at the Postal Service continue as the agency reported a net loss of $2.5 billion on revenue of $18.8 billion in the third quarter of fiscal year 2024.
Between April 1 and June 30, 2024, USPS reported a $2.5 billion net loss compared to a $1.7 billion net loss during the same quarter last year, an increase of 47%. Factors contributing to the extraordinary losses included unfunded retiree pension liabilities, inflation, and a workers’ compensation non-cash expense of $67 million driven by actuarial revaluation and discount rate changes. The Postal Service has been rapidly increasing prices in response to inflation and rising costs.
Even when excluding the pension liabilities and workers’ compensation expenses, what USPS refers to as its “controllable loss,” or factors within the organization’s control, financial losses were still $1.1 billion in the third quarter, 28% higher than the $880 million reported last quarter.
However, USPS did report a $236 million reduction in transportation costs which it attributed to progress it is making under its Delivering for America plan.
“We reduced work hours by approximately one million hours reflecting a continuing three-year trend of work hour reductions during the implementation of the Delivering for America plan. This reduction, in conjunction with lower transportation expenses for the quarter, reflects continued progress under the plan,” said Chief Financial Officer Joseph Corbett.
Total revenue was 1% higher than the fiscal year 2023 third quarter, driven by Shipping and Packages, First-Class Mail and Marketing Mail, all of which posted higher Q3 revenue.
Shipping and Packages revenue increased $182 million (2.4%) on a volume increase of 46 million pieces (2.7%) compared to the same quarter last year.
First-Class Mail revenue increased $125 million (2.1%) on a volume decline of 370 million pieces (3.4%) compared to the same quarter last year. Marketing Mail revenue increased $107 million (3.1%) on a volume decline of 43 million pieces (0.3%) compared to the same quarter last year.
