Alliance Alert – USPS Finances Continue to Crater
Alerts
August 9, 2024
June 2024 Results
Yesterday, at its Board of Governors meeting the Postal Service tried to put a positive spin on third-quarter results by focusing on revenue growth for the quarter along with a reduction in transportation costs.
Separately, they filed the latest required monthly financial update for June with the Postal Regulatory Commission.
June was bad for the United States Postal Service’s finances. The agency lost $1.2 billion in one month.
Revenue was down 5.9%. Operating expenses were up 4.7%.
Market Dominant Mail volume was driven down by 6.1% and revenue fell by 7.2%.
Package volume fell 1.3% and revenue was down 2%. Total volume dropped by 5.8% and operating revenue fell by 5.1%.
The agency was able to reduce work hours by 2.8% but that’s much less than the volume and revenue declined.
3rd Quarter FY 2024 Year-to-Date Results
The United States Postal Service loss ballooned to $6 billion three quarters through FY 2024 after a loss of $2.5 billion in the third quarter.
Operating revenue was up only 1.2% on the year despite much larger rate hikes.
Operating expenses were up 2% year-to-date.
Total volume was down 4.6% YTD. Market Dominant Mail volume was down 5.1% YTD. Package volume increased a paltry 0.3% YTD.
Package revenue grew by 2.1%, while mail revenue increased only 0.6% despite record rate increases.
The agency is not delivering on the Delivering for America promise of $1.7 billion net income this year, and it likely will exceed the 2024 Integrated Financial Plan promise of a $6.3 billion loss.
USPS Governor Comments
At yesterday’s Board of Governors meeting, a USPS Governor noted the disappointing financial performance. The Federal News Network reported:
USPS Governor Dan Tangherlini, a former administrator of the General Services Administration, said the agency’s financial position “continues to degrade.”
“Operating costs are not falling below our improving revenue, and most importantly, service is not improved at the same rate as price increases,” Tangherlini said.