Post office reports loss of $5 billion for year

Published on NewsOK Modified: November 15, 2013 at 1:22 pm •  Published: November 15, 2013
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WASHINGTON (AP) — The U.S. Postal Service said Friday it lost $5 billion over the past year, and postal officials again urged Congress to pass legislation to help the beleaguered agency solve its financial woes.

In a positive sign, the loss was a fraction of the record $15.9 billion the Postal Service reported losing last year. But it was still the agency's seventh straight annual loss and came despite its first growth in revenue since 2008.

Operating revenue rose 1.2 percent to $66 billion, thanks to growth in the post office's package delivery business and higher volume in standard mail. That was not enough to offset long-term losses in first class mail — the post office's most profitable service — where revenues declined by 2.4 percent.

"We've achieved some excellent results for the year in terms of innovations, revenue gains and cost reductions, but without major legislative changes, we cannot overcome the limitations of our inflexible business model," Postmaster General Patrick Donahoe said.

The Postal Service has struggled for years with declining mail volume, but the lion's share of its financial plight stems from a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments.

Postal officials have been pressing Congress to let the agency end Saturday mail delivery and reduce the payments for retiree health benefits. But prospects for a legislative fix are increasingly unlikely this year.

"The lack of action is simply unfair to customers and employees and all the stakeholders that depend on a healthy postal service," Donahoe said.

The Postal Service also has asked for an emergency rate hike in the cost of a first-class stamp from 46 to 49 cents. That request must be approved by the independent Postal Regulatory Commission.

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