Tue. Jul 16th, 2024

U.S. Postal Service shrinks forecast losses as hikes prices

April 27, 2023

READ FULL ARTICLE AT » https://finance.yahoo.com

WASHINGTON (Reuters) -The U.S. Postal Service said on Thursday it has cut projected losses through 2031 by more than half after winning financial relief from Congress, instituting regular price hikes and adopting reforms.

USPS said two years after unveiling its reform plan it has reduced projected losses from $160 billion to $70 billion over 10 years and still forecasts it can break-even by 2030 despite inflationary pressures that added $3 billion in USPS costs over the last two years.

USPS is raising prices twice yearly and expects its “new pricing policy to generate $44 billion in additional revenue” by 2031. USPS said last month it plans to hike the price of first-class mail stamps to 66 cents from 63 cents and raise overall first-class mail prices by 5.4%.

President Joe Biden signed legislation in April 2022 providing USPS with $48 billion in financial relief over a decade and required its future retirees to enroll in a government health insurance plan.

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