The โunsustainableโ stamp price increases have had โdisastrous effectsโ on the postal organization, said a group of senators.
The U.S. Postal Service (USPS) incurred a significant increase in its losses this fiscal year, as revenues jumped but volumes dipped.
Net loss for 2024 fiscal totaled $9.5 billion, up from $6.5 billion last year, said a Nov. 14 statement from the agency reflecting its earnings. The $3 billion increase in losses occurred at the same time the agency had a slight revenue increase from $78.18 billion to $79.53 billion. The revenue uptick was not supported by an increase in mail volume, which fell from 116 billion units to 112 billion units.
According to the USPS Office of the Inspector General, the postal agency โrelies almost entirely on the revenue generated from postageโ to cover the costs of delivering mail.
The jump in net loss occurred despite an increase in postal rates by the agency. This increase, implemented in January and July, was done in accordance with the 2021 Delivering for America (DFA) plan that calls for such annual hikes.
The 10-year plan is reportedly aimed at boosting USPSโs financial situation.
The postal agency said that more than 80 percent of the loss incurred this year was due to factors โoutside of managementโs control,โ such as adjustments related to employeesโ non-cash compensation, according to the report.
Postmaster General Louis DeJoy said the organizationโs pricing and product strategies โare continuing to improve our revenue picture and fuel market share gains in our package business.โ
Nonprofit advocacy Keep US Posted criticized the USPS for its large losses, blaming it on the agencyโs focus on the DFA plan. The $9.5 billion loss is more than $3 billion above projections, said the nonprofitโs executive director, former congressman Kevin Yoder.
He attributed the losses to mail volume declines that negated the increase in package volumes. Yoder blamed DeJoy for pursuing the DFAโs โdisastrous postage increases and misbegotten focus on packages over traditional mail, which is still the largest revenue-generator for USPS.โ
He attributed the losses to mail volume declines that negated the increase in package volumes. Yoder blamed DeJoy for pursuing the DFAโs โdisastrous postage increases and misbegotten focus on packages over traditional mail, which is still the largest revenue-generator for USPS.โ