Postal Service Loss is $1.9 Billion for the Quarter

This decline for the US Postal Services (USPS) second fiscal quarter is the 10th in the last 11.

For the past two quarters, the total loss is $2.3 billion, compared to the previous fiscal year’s first and second quarter’s total loss of just $35 million. As with other businesses, the current financial malaise is being blamed for the loss. “The economic recession has been tough on the mailing industry, and we have seen an unprecedented decline in mail volumes and revenue that continued to accelerate during the second quarter,” claims Postmaster General John Potter.

Although the USPS cut its operating expenses to $18.8 billion, which is down $782 million, 4%, year-over-year, operating revenues were $16.9 billion less. The decline is 10.5%, lower by $2 billion compared to 2008’s second quarter.

At 43.8 billion pieces, 2009 second quarter mail volumes were down 7.5 billion pieces, a 14.7% drop from last year. “We are aggressively realigning our costs to match the lower mail volumes, while also maintaining the high level of service and reliability our customers expect. We are also taking a number of steps to grow revenue,” said Potter in reaction.

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