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USPS blames rising losses on high fuel costs, e-commerce boom

February 9, 2022

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Losses soared again at the U.S. Postal Service last quarter due to a tricky business climate with rising fuel costs, spiraling parcel demand, and slumping mail volumes, the service said today.

In its accounting books, USPS reported a loss of $1.3 billion for the quarter ending December 31, compared to a loss of just $288 million for the same quarter last year. Measured by generally accepted accounting principles (GAAP), the service lost $1.5 billion for the quarter, compared to net income of $318 million for last year’s fiscal first quarter.

The results marked a stumble from USPS’ results last quarter, when it released figures showing it had slightly slowed the flood of financial losses for its fiscal year 2021 compared to 2020.

In its latest results, USPS said its fiscal first quarter generated operating revenue of $21.3 billion, a decrease of 0.9% compared to the same quarter last year. At the same time, USPS said its costs rose last quarter, led by a 9.2% jump in transportation expenses triggered by climbing rates for diesel fuel, unit costs per mile, and jet fuel.

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