US Postal Service ends fiscal year with USD5 billion loss
On Friday, the US Postal Service (USPS) posted a USD5-billion loss for the fiscal year that ended September 30. The company appealed to the Congress to make legislative changes to save its bleeding finances. This was according to a report posted by Los Angeles Times.
The USD5-billion loss is the ailing agency's seventh-straight yearly net loss. This was the result of the sharp drop in first-class mail volume in recent years despite improvement in productivity and revenue. The agency's once-most profitable product dropped by 2.8 billion pieces. Since 2006, the USPS has cut its annual costs by USD15 billion, said the report.
As part of its effort to boost profitability, the USPS has developed its package service business. Fortunately, this strategy is starting to work. Revenue from that service increased 8% to USD923 million at the end of the fiscal year. At present, the USPS package services now makes up 19% of its revenue, the report said.
The USPS has proposed several reforms to improve its business flexibility. Those reforms include lower future retirement pension payments, changes in healthcare plans, and revisions in its delivery frequency, Los Angeles Times reported.