U.S. Postal Service loses $2 billion in second quarter
The agency said on Monday that it lost $2 billion from April to June, compared with a net loss of $740 million in the same period last year, and a $1.9 billion loss in its first quarter.
USPS has focused on its shipping and package business and expanded to Sunday package delivery as more people shop online and need a service to deliver their purchases. Shipping and package revenue jumped 6.6 percent, compared with the same period last year.
USPS blames much of its financial troubles on a 2006 mandate to stow away billions of dollars for its future retirees’ health care. The Postal Service already defaulted on three of its payments into the fund and does not expect to make the next $5.7 billion installment due Sept. 30.
“To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package-sorting equipment, and make necessary upgrades to our infrastructure,” said USPS Chief Financial Officer and Executive Vice President Joseph Corbett.
The agency also wants Congress to authorize it to limit door-to-door delivery and to cut Saturday mail delivery, but those plans have been blocked by some unions and lawmakers who say it would hurt their communities.
Many in the industry point to these improvements as a sign that the agency does not need to make the drastic service cuts it has sought.
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