The U.S. Postal Service (USPS) reported a net loss of $9.5 billion on total operating revenue of $79.5 billion in the 2024 fiscal year which ended on September 30, 2024, according to its annual financial results.
The net losses were 46% higher than the annual losses in the 2023 fiscal year when it lost $6.5 billion. However, total revenue was also 1.7% higher than last year.
Revenue was up in FY 2024 across three major areas:
- Shipping and Packages – $625 million increase (2%) over FY 2023
- First-Class Mail – $830 million increase (3.4%) over FY 2023
- Marketing Mail – $292 million increase (1.9%) over FY 2023
USPS was quick to point out in its financial report that controllable losses, or losses that stem from factors the agency considers within its control, were $1.8 billion in FY 2024. It said that 80% of the net losses were a result of “amortization of unfunded retiree pension liabilities and non-cash workers’ compensation adjustments.”
USPS said that mail volume continues to decline and package volume continues to increase, an ongoing trend in today’s digital era. Chief Financial Officer Joseph Corbett said in a statement:
The financial results for the year and the ongoing trend of declining mail volume and increasing package volume reinforce our commitment to the full implementation of the Delivering for America plan. Adherence to the tenets of the plan, for example, has allowed us to reduce work hours for the third consecutive year, cumulatively reducing 45 million hours that will result in $2.3 billion in annual savings prospectively, and to save $1.3 billion in transportation costs in fiscal year 2024. The plan delivers the framework for us to better innovate to grow revenue, work more efficiently, and achieve financial sustainability to fulfill our universal service mission over an integrated network to deliver both mail and packages.
Corbett is set to retire at the end of 2024. Current Senior Vice President of Finance & Strategy Luke Grossmann has been appointed as the new Chief Financial Officer and Executive Vice President. He will begin in that role starting November 30, 2024.
Postmaster General Louis DeJoy echoed Corbett’s need to continue implementing the USPS Delivering for America plan. He said in a statement:
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. 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.
DeJoy has faced scrutiny recently for comments he made about his goals of achieving a “100% unionized” operation at USPS, something his critics say is doing the opposite of what he says is happening at the agency with respect to its finances.
Americans for Tax Reform reported that USPS labor costs have continued to increase under DeJoy’s watch while the agency has failed to deliver on its promised cost savings in its Delivering for America plan. President of Americans for Tax Reform Grover Norquist told Matthew Foldi, the reporter who broke the report of DeJoy’s comments, “DeJoy would rather swell the ranks of his comrades in the union than protect taxpayers from further bailouts.”
Even though DeJoy began serving as Postmaster General during President Trump’s first administration, there is speculation that his comments will get the attention of the Trump administration as it makes its plans to return to Washington in 2025. As the Washington Examiner notes, “Allies of President-elect Donald Trump passed around his comments this week, concerned that they did not fit with the new administration’s goals to cut costs and staff.”
However, the Postmaster General is not a member of the president’s Cabinet and as such cannot be removed directly by the president. The Postmaster General is appointed by the Board of Governors of the U.S. Postal Service. The Postmaster General serves for an indefinite term and remains in place as long as he or she continues to have the support of the Board of Governors.
