USPS Losses Continue, Default on Federal Payments Looming
Electronic diversion continues to cause reductions in First-Class Mail. For the third quarter, single-piece First-Class letter revenue declined $259 million or 8.7 percent, while Periodicals revenue decreased 3.0 percent compared to the same period a year earlier.
“Since the passage of the Postal Accountability and Enhancement Act of 2006 (PAEA), the Postal Service has contributed more than $37 billion to a trust fund for future retiree health benefits,” noted Joseph Corbett, CFO and executive vice president. “We are experiencing a severe cash crisis and are unable to continue to maintain the aggressive prepayment schedule that was mandated in the PAEA. Without changes in the law, the Postal Service will be unable to make the $5.5 billion mandated prepayment due in September.”