U.S Postal Service continues to push for regulatory reform amid continued losses

USPS prices

The U.S Postal Service (USPS) has reported revenues of $17.1bn in the third quarter of 2018, up by 2.4% year-on-year.

Total mail volume declined by a combined 397m pieces, or 1.2%, while Shipping and Packages revenue increased by $475m, or 10.2%, on volume growth of 7.5%.

The net loss for the quarter totalled $1.5bn, a decline in net loss of $651m compared to the same period last year, the result of nonrecurring adjustments to retirement and retiree health benefit plans to account for revised actuarial assumptions. Excluding the effects of these adjustments, the net loss for the quarter increased by $507m.

“The root cause of our financial instability is a flawed business model that is imposed by law. We encourage the Congress to engage in a broad public policy discussion and pass postal reform legislation,” said Postmaster General and CEO Megan J. Brennan. “We support legislation under consideration in the current Congress which would provide immediate flexibility to the organization, allow the Postal Service to invest in our future and continue to provide the prompt, reliable, efficient and universal service the public expects.”

Brennan added that in addition to enactment of postal reform legislation, continued aggressive postal management action and regulatory changes, including a less rigid and more responsive pricing system, are required.

“After adjusting for actuarial changes related to retirement and retiree health benefit plans, the quarter results reflect ongoing trends. The secular declines in mail are somewhat offset by package growth, and labor productivity continues to improve,” said Chief Financial Officer Joseph Corbett. “However, absent changes to our business model, net losses are expected to continue.”

Source: U.S Postal Service