Postal service

US Postal Service announces net loss of $4.9 billion in 2021

WASHINGTON, Nov 10 (Reuters) – The United States Postal Service (USPS) on Wednesday reported a net loss of $4.9 billion for the year ending September 30, reducing its losses from the previous year.

USPS operating revenue was $77 billion for fiscal year 2021, an increase of $3.9 billion, or 5.3%. He announced a net loss of $9.2 billion in 2020.

Postmaster Louis DeJoy announced a plan in March to cut projected losses by $160 billion over the next decade. “We have years of inflicted damage to repair that will require us to take continued uncomfortable steps,” DeJoy said Wednesday.

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The USPS said shipping and parcels revenue grew by $3.5 billion in 2021, or 12.2%, largely due to the e-commerce boom resulting from record holiday volume.

First-class mail volumes fell to 50.7 billion items in 2021, the lowest number since 1971, and is down 51% since 2001.

The USPS has struggled with poor delivery performance over the past year, dealing with a huge surge in packages and staffing issues due to COVID-19, but DeJoy said the agency is ready for a busy holiday season. “We are ready,” he said.

Last month, the USPS implemented new service standards that slow some first-class mail deliveries as part of efforts to reduce red ink.

The new standards have revised service standards from one to three days to one to five days, affecting approximately 40% of first class mail.

In late August, the USPS raised prices for first-class stamps to 58 cents from 55 cents.

The USPS has recorded net losses of nearly $100 billion since 2007. This stems in part from 2006 legislation that required the agency to pre-fund more than $120 billion in healthcare and retirement benefits for retirees. , a requirement that unions have called an unfair, unshared burden. by other companies.

Congress is considering a plan to provide the USPS with $46 billion in financial relief over 10 years, including eliminating the requirement that the USPS prefund retiree health benefits for 75 years.

Congress is separately considering allocating $6 billion to the USPS to purchase electric delivery vehicles and electric vehicle infrastructure.

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Reporting by David Shepardson in Washington Editing by Matthew Lewis

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