A coronavirus pandemic-fueled surge in package deliveries has not been enough to offset the Postal Service’s increased operating costs and declining revenue from mail services, Chief Financial Officer Joe Corbett reports in his latest “Dollars and Change” video.
During fiscal year 2021’s second quarter (Jan. 1-March 31), the organization’s total revenue was approximately $18.9 billion and total operating expenses were approximately $19 billion, leaving USPS with a net loss of $82 million.
However, as Corbett explains, under the Postal Service’s more representative measures — excluding certain non-cash adjustments not under management’s control — the loss was $1.7 billion this quarter compared with $1.9 billion in the second quarter one year earlier.
First-Class Mail and Marketing Mail revenue and volume continued to decline during fiscal year 2021’s second quarter, while revenue and volume from shipping and packages increased as consumers continued to shop online during the pandemic.
These ongoing trends highlight the need for Delivering for America, the Postal Service’s new 10-year plan.
“The plan delivers the framework for us to better handle these trends, better innovate to grow revenue, work more efficiently and achieve financial stability,” Corbett says.
If fully implemented, the plan will allow USPS to break even by fiscal year 2023 or 2024, reversing a projected $160 billion in losses during the next decade.
Employees can do their part by helping the organization improve efficiency, reduce costs, pursue innovation and grow revenue, Corbett says.