Postal Service reports $3.9 billion in losses for fiscal year 2018

The US Postal Service ...

Posted: Nov 15, 2018 5:10 PM
Updated: Nov 15, 2018 5:10 PM

The US Postal Service reported a loss of $3.9 billion for fiscal year 2018, despite growth in its shipping and packaging business.

The Postal Service's package business made a 10% leap in revenue and saw a 6.8% increase in volume from last fiscal year, according to an agency report released Wednesday.

Business and industry sectors

Business, economy and trade

Freight transportation

Postal services

Transportation and warehousing

Government organizations - US

US federal departments and agencies

US government independent agencies

US Postal Service

That growth has offset the declines in first-class and marketing mail, generating a $1 billion increase in total operating revenue, from $69.6 billion to $70.6 billion.

But the Postal Service said it saw a $2.2 billion increase in operating expenses due to increases in compensation and benefits as well as in transportation expenses stemming from higher fuel prices and higher package volume.

The agency continues to struggle under the weight of ongoing pension obligations and will not make a scheduled $6.9 billion in benefits prepayments, the subject of ongoing political debate.

Postmaster General and CEO Megan J. Brennan said in a statement that the "flawed business model imposed by law continues to be the root cause of our financial instability."

"We are seeking reforms that would allow the organization to reduce costs, grow revenue, compete more effectively, and function with greater flexibility to adapt to the marketplace and to invest in our future," Brennan said.

The agency is limited in how much of its costs it can pass on to consumers. Last month, the Postal Service requested the biggest price jump on stamps to help address the revenue shortfall.

In April, President Donald Trump ordered a review of the Postal Service's business model by a task force led by the Treasury Department. He has also lambasted the terms of USPS's contract to deliver packages for the online shopping company Amazon.

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 43793

Reported Deaths: 673
CountyConfirmedDeaths
Multnomah9502166
Marion6024109
Washington599178
Umatilla343545
Clackamas326766
Lane246727
Malheur194938
Jackson17967
Deschutes118513
Yamhill101315
Linn84515
Polk66815
Jefferson60710
Morrow5517
Lincoln51813
Union4842
Benton4636
Klamath4223
Douglas3688
Wasco34916
Hood River2841
Columbia2711
Josephine2703
Coos2601
Clatsop2480
Baker1403
Crook1132
Tillamook740
Curry581
Wallowa492
Lake430
Harney350
Sherman200
Grant120
Gilliam110
Wheeler10
Unassigned00
Eugene
Broken Clouds
39° wxIcon
Hi: 58° Lo: 38°
Feels Like: 35°
Corvallis
Overcast
43° wxIcon
Hi: 59° Lo: 36°
Feels Like: 39°
Roseburg
Clear
38° wxIcon
Hi: 64° Lo: 45°
Feels Like: 38°
North Bend
Broken Clouds
48° wxIcon
Hi: 58° Lo: 44°
Feels Like: 43°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events