- 9 May 2022
- Transport/logistics services
The US Postal Service reported a GAAP net loss of US$639m (£520.57m) in the second quarter to March 31 of the financial year. That’s significantly more than the $82 million loss in the second quarter of 2020-21.
The postal operator is undergoing a series of reforms that include modifying health benefits for its staff. According to a press release, following the Postal Reform legislation, it is to establish “the Postal Service Health Benefits Program for Postal Service employees and retirees and requiring enrollment in Medicare; repealing the requirement that the Postal Service prepay future retiree health benefits each year and canceling all overdue prefunding payments; provide authority for the provision of certain services to state, local and tribal governments; require the Postal Service to develop and maintain a publicly available dashboard to track service performance and report regularly on its operations and financial condition; codifying delivery frequency to six days a week in areas where it is currently provided; and requiring the Postal Service to maintain an integrated delivery network for mail and packages.
Service improvements included increasing the average delivery speed to 2.7 days for first class mail, a 7% increase over the second quarter of last year. Some 87.9% of first class mail was delivered during the quarter, compared to 78.1% last year. One of the goals of the Delivering for America program is to achieve or exceed 95% on-time service performance for all mail and shipping products when the plan is fully implemented.
“During the quarter, we made great strides in on-time delivery, demonstrated the effectiveness of our network through the delivery of COVID-19 tests, and continued to aggressively implement key aspects of Delivering for America. , our 10-year transformation plan,” said Postmaster General and CEO Louis DeJoy. “Our financial results this quarter demonstrate the challenging nature of the current inflationary economic environment as we make structural progress to balance long-standing revenue and cost imbalances and return the organization to financial sustainability.”