The Postal Service has reported its financial results for fiscal year 2024’s second quarter (Jan. 1-March 31). Here are some highlights:
• Revenue. Total operating revenue was $19.7 billion, an increase of 2.1 percent compared with the same quarter one year earlier. Shipping and packages revenue increased 1.2 percent, First-Class Mail revenue increased 4.4 percent and Marketing Mail revenue increased 2.1 percent.
• Volume. Total volume was 28 billion pieces, down 2.1 percent compared with the same quarter the previous fiscal year. Shipping and packages volume increased 1.5 percent, while First-Class Mail volume declined 2.2 percent and Marketing Mail volume declined 2 percent.
• Expenses. Total operating expenses were $21.3 billion for the quarter, a decrease of 3.1 percent compared with the same quarter one year earlier, reflecting the Postal Service’s cost control efforts over transportation expenses and work hours.
• Net loss. The net loss under generally accepted accounting principles (GAAP) totaled $1.5 billion, compared with a net loss of $2.5 billion for the same quarter one year earlier. GAAP results for the quarter were negatively affected by $1.4 billion of expenses attributed to the amortization of unfunded retiree pension liabilities, offset by a workers’ compensation noncash benefit of $224 million driven by actuarial revaluation and discount rate changes; these factors are not controllable by the Postal Service. Controllable loss for the quarter was $317 million, compared with a controllable loss of $498 million for the same quarter one year earlier. These results were favorably affected by increased revenue and lower transportation costs, partially offset by the continued effect of inflation on operating expenses.
“Our financial results this quarter demonstrated positive trends regarding improved revenue generation and cost control. This reflected progress in the implementation of our 10-year transformation and modernization plan,” said Postmaster General Louis DeJoy. “We also saw gains in package deliveries through our successful USPS Ground Advantage offering, which was enabled by our new operating model. As we continue to modernize our processing, transportation and delivery functions, we will increasingly operate with greater efficiency and capability, and at a consistently higher level of performance.”
The Postal Service’s May 9 news release has additional information.
