USPS: Year-end finances reported – $9.2 billion net loss

Alexandria, VA, Letter Carrier Nasir Mehmood makes deliveries in April.

The Postal Service has reported its financial results for fiscal year 2020 (Oct. 1, 2019-Sept. 30, 2020). Here are some highlights:

• Revenue. Operating revenue was $73.1 billion, up 2.8 percent from the previous fiscal year, driven by a 25.3 percent increase in shipping and package revenue. First-Class Mail revenue fell 2.7 percent, while Marketing Mail revenue declined 15 percent.

• Volume. Total mail and package volume was 129.2 billion pieces, down 9.4 percent. First-Class Mail volume declined 4.2 percent, while Marketing Mail volume dropped 15.2 percent. Mail volume began to show slight improvement in the last few weeks of the year, although this was driven in part by the temporary surge in election-related mail. Package volume grew 18.8 percent compared with last year due to the surge in online shopping during the coronavirus pandemic.

• Expenses. Operating expenses for the year were $82.2 billion, an increase of 2.9 percent compared with the previous year.

• Net loss. The net loss for the year was $9.2 billion, an increase in net loss of $363 million compared with fiscal year 2019.

“2020 has been an extraordinary year for the Postal Service and the nation. Amid the tumult of the COVID-19 pandemic — and with the challenges of the election, disruptions in our workforce, rapid changes in our marketplace, and long-term financial distress — the 644,000 women and men of the Postal Service delivered for the American public,” said Postmaster General Louis DeJoy.

“We remain committed to our mission of service in every American community — delivering the medicine, supplies, benefit checks and important correspondence the public depends upon. We are likewise committed to addressing our significant financial imbalances — which were exacerbated by COVID this year and will cause lasting impacts — through a combination of management actions, and legislative and regulatory reforms,” DeJoy said.

The Postal Service’s Nov. 13 news release has more information.

USPS News Release – November 13, 2020

Source: USPS

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