U.S. Postal Service reports $4.9 billion 2021 net loss

- Advertisement -


WASHINGTON (Businesshala) – The United States Postal Service (USPS) on Wednesday reported a net loss of $4.9 billion for the year ended September 30, narrowing its losses from the previous year.

slide show (2 images)

USPS operating revenue for the 2021 budget year was $77 billion, an increase of $3.9 billion or 5.3%. It reported a net loss of $9.2 billion in 2020.

- Advertisement -

In March Postmaster Louis Dejoy announced plans to cut estimated damages by $160 billion over the next decade. “We’ve done damage over the years to fix it, which will require us to take some continuing uneasy action,” DeJoy said on Wednesday.

The USPS said shipping and package revenue grew $3.5 billion, or 12.2%, in 2021, largely driven by a boom in e-commerce as a result of record holiday volumes.

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

The USPS has struggled with poor delivery performance over the past year, facing a huge escalation in package and staffing issues due to COVID-19, but DeJoy said the agency was prepared for a busy holiday season. He said, ‘We are ready.

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

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

In late August, the USPS raised the prices of first class tickets from 55 cents to 58 cents.

The USPS has reported a net loss of nearly $100 billion since 2007. This stems in part from a 2006 law that required that the agency pre-fund more than $120 billion in retired health care and pension liabilities, a requirement that labor unions have called an unfair burden that cannot be shared. has been done. by other businesses.

Congress is considering a plan to provide $46 billion in financial relief to the USPS over 10 years, including eliminating the need for USPS pre-funded retiree health benefits for 75 years.

Congress is considering a USPS $6 billion award to separately buy electric delivery vehicles and EV infrastructure.

Reporting by David Shepardson in Washington; Editing by Matthew Lewis

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox