Post office posts $1 billion loss

For the quarter ended June 30, the loss was $1.1 billion, which officials blamed on reduced mail volume in the slowed economy, coupled with rapidly rising transport costs because of high fuel prices.

The Associated Press

8/6/2008

WASHINGTON — The Postal Service had a net loss of more than a billion dollars in the third quarter of the fiscal year, the agency said Wednesday.

For the quarter ended June 30, the loss was $1.1 billion, which officials blamed on reduced mail volume in the slowed economy, coupled with rapidly rising transport costs because of high fuel prices.

Operating revenue for the quarter was $17.9 billion, down $437 million, or 2.4 percent, compared with the same period last year.

Operating expenses totaled $19.0 billion, an increase of $178 million, or 1.0 percent, from the third quarter last year.

Total mail volume was 48.5 billion pieces, a 5.5 percent drop from the same period last year.

The agency said its fiscal 2008 year-to-date net loss totals $1.13 billion.

Postage rates went up a penny to the current 42-cent price in May. Another increase is expected next May.

Meanwhile, the post office said on-time delivery reached record highs for all three categories of first-class mail the Postal Service tracks. Overnight service was 97 percent on-time, up from 96 percent the same period last year. Two-day service was 95 percent on-time, up from 93 percent, and three-day service was 94 percent on-time, up from 91 percent last year.