The United States Postal Service (USPS) has announced it reduced its net loss for Q2 by US$1bn to US$1.5bn compared to the same quarter in 2023, with total operating revenue increasing by US$410m to US$19.7bn compared to Q2 last year.
According to the postal operator, US$1.4bn of the losses were uncontrollable losses attributed to the payment of unfunded retiree pension liabilities. Controllable loss for the quarter was US$317m, down from US$498m for the same quarter last year.
Revenue for the overall Shipping and Packages category increased by US$89m (1.2%) on a volume increase of 25 million pieces (1.5%) compared to the same quarter last year.
First-Class Mail revenue increased US$280m (4.4%) on a volume decline of 261 million pieces compared to the same quarter last year, while Marketing Mail revenue increased US$74m, on a volume decline of 282 million pieces.
“Our financial results this quarter demonstrated positive trends regarding improved revenue generation and cost control. This reflected progress in the implementation of our 10-year transformation and modernization plan,” said Postmaster General Louis DeJoy.
“We also saw gains in package deliveries through our successful USPS Ground Advantage offering, which was enabled by our new operating model. As we continue to modernize our processing, transportation and delivery functions, we will increasingly operate with greater efficiency and capability, and at a consistently higher level of performance.”
Total operating expenses were US$21.3bn for the quarter, a decrease of US$685m (3.1%) compared to the same quarter last year, reflecting USPS’s cost control efforts over transportation expenses and work hours.
“The second quarter saw continued growth in package revenues, which along with lower transportation expenses, favorably impacted our business,” explained chief financial officer Joseph Corbett.
“Inflation, and higher mandated retirement benefit costs, continue to offset these positive efforts. We continue to manage the costs within our control, working toward financial stability for our organization through the full implementation of the Delivering for America plan.”