Postal Service sees $1.6B August net loss
The US Postal Service saw a net loss of nearly $1.6 billion in August, and a $7.7 billion net loss for the first 11 months of its 2010 fiscal year.
The organization ran a $721 million net loss in August 2009, and a $6.3 billion net loss for the first 11 months of its previous fiscal year, according to preliminary financial information published by the Postal Regulatory Commission.
However, the Postal Service's total mail volume was up 1.8% year-over-year during August, totaling 13.7 billion pieces. For the fiscal year to date, mail volume down 3.8% to 156 billion pieces.
The USPS also cut employee work hours by
Total work hours at the USPS decreased 3% year-over-year in August to 98 million, and 6.2% for the fiscal year to date to less than 1.1 billion.
The Postal Service saw a net loss of $764 million in July, an improvement from its net loss of $865 million in July 2009. USPS officials have warned that “given current trends, we will not be able to pay all 2011 obligations.”
Last week, Sen. Thomas Carper (D-DE) introduced a bill that would allow the USPS to reduce the number of its home delivery days, close unnecessary post offices, and open retail outlets or automated kiosks in grocery stores and other retail areas.
A Postal Service spokesperson declined comment on the statistics, saying the USPS does not comment on the monthly unaudited numbers.