US Postal Service says it won't breakeven next year as sales fall

Robert Besser
19 Nov 2023, 22:27 GMT+10

After reporting a net loss of US$6.5 billion for the 12 months ending September 30, the USPS said it will not breakeven next year as its sales of first-class mail fell to the lowest level since 1968
Despite increasing stamp prices, its revenue fell 0.4 percent to $78.2 billion, the service added
The loss includes $2.6 billion in inflation costs "above what we projected and what we were able to recover. We are not happy with this result"

WASHINGTON D.C.: After reporting a net loss of US$6.5 billion for the 12 months ending September 30, the U.S. Postal Service (USPS) said it will not breakeven next year as its sales of first-class mail fell to the lowest level since 1968.

Despite increasing stamp prices, its revenue fell 0.4 percent to $78.2 billion, the service added.

The loss includes $2.6 billion in inflation costs "above what we projected and what we were able to recover. We are not happy with this result," said U.S. Postmaster-General Louis DeJoy.

The USPS is in the middle of a 10-year restructuring plan announced in 2021, which set a goal to breakeven in 2023 and aimed to eliminate $160 billion in predicted losses over the next decade.

USPS has reduced the $160 billion in losses projected in 2021 "to less than $60 billion," DeJoy said, adding, "Despite substantial planned reductions in our cost of operations and growth in our package revenues, we will not reach breakeven results in 2024."

For the year, USPS's total operating expenses totaled $85.4 billion, a rise of $5.8 billion or 7.3 percent. To preserve liquidity, it did not make the full $5.1 billion in retirement plan payments due, the service said.

In April 2022, U.S. President Joe Biden signed legislation providing USPS with financial relief worth some $50 billion over a decade.

In October, USPS said it asked approval to raise the price of first-class stamps to 68 cents from 66 cents effective on January 21. Since early 2019 when they were 50 cents, stamp prices have risen 32 percent over the past four years.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.

More Information

26 ℃

Fair in Subang

Southeast Asia

Section

Zardari blames 'some forces' for pulling back leaders with progressive vision

QUETTA, Pakistan - Asif Ali Zardari, Co-Chairman of the Pakistan Peoples Party (PPP), stated on Thursday that 'some forces' impede ...

EU voices optimism for Bangladesh's election: Calls for democracy, credibility

DHAKA, Bangladesh - The European Union (EU) expressed hope on Wednesday that Bangladesh would hold democratic, credible, peaceful, and participatory ...

Myanmar ethnic group alliance captures trade gate on Chinese border

NAYPYIDAW, Myanmar: Kyar Win, spokesperson for the Myanmar National Democratic Alliance Army, which launched a surprise offensive last month against ...

Thailand will downgrade growth forecast for 2023 to 2.7 percent

BANGKOK, Thailand: This week, Thailand's Deputy Finance Minister Krisada Chinavicharana said after a weaker-than-expected third quarter, the country will downgrade ...

Former PTI advisor Shahzad Akbar faces shocking acid attack in UK

LONDON, UK - Shahzad Akbar, a former accountability advisor to former Pakistani Prime Minister Imran Khan, has claimed that an ...

China pledges to deepen bilateral trade relations with Vietnam

BEIJING, China: The country's commerce ministry said that during a meeting with Vietnamese Prime Minister Pham Minh Chinh in Ho ...

Business

Section