Postal Service reports net loss of $3.8B for fiscal 2009
The US Postal Service reported on November 16 a net loss of $3.8 billion for its 2009 fiscal year. It also disclosed a nearly 9.1% drop on operating revenue to $68.1 billion this year from $74.9 billion last year.
While the agency's net loss is $1 billion more than the $2.8 billion reported for the 2008 fiscal year, it cut operating expenses by nearly $6 billion for the fiscal year. The USPS saw a decline of more than 25 billion mail pieces, or 12.7%, of its total mail volume for fiscal 2009, which ended September 30.
The agency, which is set to file its 2010 fiscal year financial plan later this week, is predicting a revenue decline of $2.2 billion for its next fiscal year, as well as a net loss of $7.8 billion, cost reductions of more than $3.5 billion and a reduction in mail volume of 11 billion pieces.
Last week, John Potter, postmaster general and CEO of the USPS, again advocated dropping the agency's delivery days from six to five per week. The agency is in the midst of determining what local branches to close in an effort to further cut costs.
Congress passed legislation this fall that allowed the USPS to delay $4 billion in payments to a retirees' healthcare fund. The postal service had been charged with spending $5.4 billion on payments to the fund for fiscal year 2009.