(Best Syndication News) - The United States Postal Service (USPS) announced a net loss of $5.2 billion in their third fiscal quarter results (April 1 – June 30). The USPS also showed a net loss $3.1 billion for the same time period last year.
The USPS attributes the sizeable increase in losses to the mandated prefunding of retiree health benefits. A financial shortfall has caused the USPS to be unable to pay the required $5.5 billion prefunding payment for retiree health benefits that was due on Aug. 1.
Another problem was the reduction in First Class Mail. There was a reduction of 4.4 percent in First Class revenue for the last quarter. There was a 9 percent growth in revenue from Shipping Services and package delivery, but the decline in First Class mail volume offset the growth. Total mail volume this quarter was 38.5 billion pieces, which was a decrease of 1.4 billion pieces compared to the same time last year.